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Shut it Down

May 27, 2011
Laurence M. Vance

The federal government has once again reached its debt limit. With the federal deficit exceeding $1 trillion for the third straight year, and the government’s inability to exceed the debt ceiling of $14.294 trillion, there is talk once again of a government shutdown.

This does not mean, however, that the government has ceased borrowing money. Treasury Secretary Timothy Geithner has already said that he will halt investments in two government pension plans so the government can continue to borrow money. He also said that unexpected revenue and bookkeeping maneuvers will allow the Treasury Department to continue auctioning off more federal debt. Geithner adds, though, that if Congress doesn’t increase the debt ceiling by August 2, the government faces the possibility of defaulting on its debt.

The only other times the debt limit was reached was back in 1995 and 1996 when Clinton was the president and the Republicans controlled both houses of Congress. And what was the result? The Republicans caved and raised the debt limit so they could continue their profligate spending habits.

The last two times the debt ceiling was raised (Dec. 2009 & Feb. 2010), not a single Republican in the House or Senate voted in favor of doing so. And they are threatening to do so again unless considerable spending reductions are included with any plan to raise the debt level. That is, the self-proclaimed champions of fiscal conservatism will eventually sell out, as usual.

There is only one solution to the dilemma faced by the federal government over its inability to borrow more money. Shut it down!

And now… the rest of the story. …..

One Comment leave one →
  1. Pazuzu permalink
    May 27, 2011 11:20 am

    Until the government starts acting like responsible adults, maybe their credit card would be best left cut up into tiny pieces. I don’t need that SOB O’bama to tell me I should tighten my belt or anything else…while that hypocrit does exactly like any other despot or dictator- just what he pleases. Sic semper tyrannus!

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