Do Not Raise the Debt Ceiling Again

Thursday, 17 Oct 2013 02:05 PM

By Chris Freind

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After last month’s boardwalk fire, New Jersey Gov. Chris Christie, self-proclaimed fiscal hawk, immediately allocated $15 million in taxpayer money to business owners.
 
Sorry, Guv, but that’s why God made insurance. Government had absolutely no reason to get involved. Yet it did.
 
That decision is symbolic of how the United States became so paralyzed by its monstrous debt. A little here, a lot there, often for things that tug at the heart but have no relevance to government, multiplied countless times over decades. The result is municipalities and entire governments, such as Detroit and Puerto Rico, on the verge of collapse.
 
Now the piper is calling the granddaddy of them all: the U.S government and its incomprehensible $17 trillion debt, and no bailouts or bankruptcies can save that behemoth. Short of reversing of business-as-usual — cutting rather than adding debt — things will get uglier than ever before.  
 
The airwaves are filled with “experts” admonishing Congress to keep raising America’s debt ceiling so as to avoid the “catastrophic” consequences of “default.”
 
I’m not sure what’s worse: the deliberately disingenuous politicians and media outlets pushing that misinformation, or the ones who, without thinking, actually swallow that pap.
 
This is not complicated. Aggressively reign in spending with a common-sense approach, or risk an eventual currency collapse that will turn America into a second-world nation. It’s that simple.
 
Let’s look at the facts:
 
1. There will be pain if the debt ceiling isn’t raised again, but there will be no default. By law, payment on the national debt comes first, and there’s plenty to pay our interest obligation ($220 billion) since revenue is more than 10 times that amount ($2.6 trillion). Granted, that’s a ticking time bomb since the principle isn’t being touched, but there’s no need to incur more debt to “pay off” existing debt.
 
2. Everyone concedes the astronomical debt is a significant problem, yet every time the ceiling is reached, Congress raises it, and the shopping spree continues, leading to more deficits and more debt. Enough is enough. Keep the ceiling where it is, and force government to live within its means, just as solvent businesses and stable families do. Identifying a problem yet looking the other way is impotence. Enabling its growth is cowardice.
 
3. Economists, politicians, and Wall Streeters who say that not raising the debt ceiling would be the height of irresponsibility need to look in the mirror. How is raising it any saner? Doing the same thing repeatedly and expecting a different result, in this case, thinking that increasing debt will prove beneficial, is lunacy. If they’re the best and brightest, I shudder to think of the dumb ones.
 
4. Prioritize. Force Congress to finally do its job, making them fight like cats and dogs to fund what it most needed. You’d be amazed at how quickly they figure out what’s important, and what isn’t. Pass a law requiring across-the-board cuts. No exceptions, even the sacred cows of entitlements and defense. People will be much more accepting if they know everyone feels the pain. And get the ball rolling on a constitutional amendment mandating a balanced budget.
 
5. Magically creating money to pay our bills is insane, but the Fed has been inventing $85 billion per month with a keystroke (they don’t even print it anymore; ain’t technology great?), which then gets pumped into the “economy” via Wall Streeters’ pockets. That’s why, despite the stagnant economy, the stock market remains so robust, artificially propped up by an entitlement program for the super-wealthy.
 
Wall Street has become so addicted to the Fed’s drug that the mere mention of cutting back sends the market tanking, so the funny money keeps rolling. This must end now, on our terms, before the big meltdown occurs, since what goes up must come crashing down.
 
6) America is seen as an increasingly bad credit risk, which is why there’s been such a drop-off in buying Treasurys, and why the Fed is buying a trillion dollars’ worth each year.
 
Chinese ownership of U.S. debt is yesterday’s news. Not only aren’t the Chinese buying Treasurys, they (and the Japanese) have been dumping significant U.S. debt while buying gold and silver at a record pace. Think they know something?
 
The game is up, and everyone knows it. Except those in Washington.
 
A wise man once said there’s what people want to hear, what they want to believe, everything else — and then there’s the truth. And the hard truth is that the easy answers are behind us.
 
To think America can’t fall is arrogance at best, stupidity at worst. It can, and will, unless drastic action is taken, starting with no more debt ceiling raises. Doing so would send an unmistakable message that America is making a comeback. But raising it as a “solution” would be akin to rearranging deck chairs on the Titanic.
 
Anyone remember how that turned out?
 
This article was first published in the Delco Times.
 
Chris Freind is an independent columnist, television commentator, and investigative reporter who operates his own news bureau, Freindly Fire Zone Media. Read more reports from Chris Freind — Click Here Now.
 
 
 

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