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  • Morning Bell: Myth-Busting the Debt Limit

    The United States today hit an all-time high debt, passing $14 trillion, according to Associated Press reports. And with $45,300 of debt for every man, woman and child in the United States, it’s clear as day that spending is the problem. Yet Washington has yet to come to an agreement on a way forward, either in the short term or the long term, though the budget plan passed by the House of Representatives would fundamentally alter this debt-ridden path the nation is on.

    It’s time to get serious about cutting spending and getting the U.S. government to live within its means. But that’s not the message coming out of the White House.

    On the issue of the whether to raise the debt ceiling—allowing the government to borrow and spend even more money—President Barack Obama has resorted to dire predictions about what could happen if Congress does not take action. The Hill reports:

    If investors around the world thought that the full faith and credit of the United States was not being backed up, if they thought that we might renege on our IOUs, it could unravel the entire financial system,” Obama said at a town hall meeting hosted by CBS last week but released Sunday.

    “We could have a worse recession than we already had, a worse financial crisis than we already had.”

    And, likewise, U.S. Treasury Secretary Timothy Geithner warned that if Congress does not raise the debt limit, the U.S. economy would likely enter a “double-dip recession” and added, “A default would inflict catastrophic, far-reaching damage on our nation’s economy, significantly reducing growth, and increasing unemployment.”

    But Heritage Foundation Vice President of Domestic and Economic Policy David S. Addington notes that those dire predictions just aren’t true. In discussing J.D. Foster’s paper “Congress Has Time and Options on Debt Limit,” Addington writes:

    As Dr. Foster’s paper demonstrated, there will not be a default on the Federal debt when the Treasury reaches the statutory limit on its borrowing of $14.294 trillion.  The Treasury just will not be able to borrow any more money.  The Treasury would still pay debts that come due, putting off temporarily payment of less important obligations as necessary to pay the maturing debt.

    President Obama’s prophecies about the debt limit obscure an underlying truth: The U.S. government must find a way to get control of spending. Simply raising the debt limit and allowing the United States to borrow more money, unchecked, will not make that happen. To that end, in an interview with The Wall Street Journal, investor Stanley Druckenmiller warns that defaulting on the debt is not the real problem Wall Street should be worried about:

    In the future, he says, “People aren’t going to wonder whether 20 years ago we delayed an interest payment for six days. They’re going to wonder whether we got our house in order.”

    If the president needs a roadmap to making those cuts and getting the government in order, he ought to take a look at Heritage’s Saving the American Dream—our plan to fix the debt, cut spending, restore prosperity, balance the nation’s budget within a decade, and keep it balanced. On the issue of the debt ceiling, Addington has some advice, as well:

    If the Obama Administration is serious about getting spending under control and about maintaining orderly financial markets, Secretary Geithner needs to help guide his colleagues at the Office of the Management and Budget and in the White House toward near-term substantial reductions in Federal spending, including for entitlement programs, and long-term solutions to ensure that the Federal Government never spends itself again so deeply into debt that it cannot effectively manage its way out.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    62 Responses to Morning Bell: Myth-Busting the Debt Limit

    1. George Colgrove, VA says:

      According to the Wall Street Journal the ceiling was hit today. This means the cuts need to start NOW! We have more than enough tax money to honor our debts for the rest of the year and beyond. What we do not have, is enough money to fund the largest – most bloated and ineffective government man has ever created.

      Time to start cutting programs and handing out pink slips. This could have been avoided back in January had we implemented across the board cuts. We are now in emergency status. To make this as pain free as possible we need to cut evenly across the board – NO POLITICS! Only essential workers need to report to work from today to September. There is no more money to tax and if we do so it will permanently kill our economy. The only place we have to manuver is cutting the size/scope and cost of government and that has to start now.

      #1 duty of the current federal government is to get our dollar secure. We need to honor our debt (full payment of the interest and paying back what needs to be paid back.) The #2 priority is the defense of this country with a far smaller defense budget that focuses defense dollars to defense. End all DoD jobs programs. Manage the essential departments to keep the country running to the limits as described in the constitution is the number three priority. The fourth priority is to make certain the elederly on federal programs are funded with all others seeking alternative aid.

      We are there folks. If we do not address this as an emergency and do as we have always done – "when the going gets tough, the tough gets going" – we will not survive this. We need to stop letting the federal workforce in the treasury department bully us into raising the ceiling. Lets hold firm. We will not default if we make the right choices.

      This is a choice of saving DC for the ruling/federal class or saving the country for us all. I vote for the country!

    2. George Colgrove, VA says:

      The lunacy of raising the debt ceiling to pay off debt is crazy! Where are the straitjackets?

    3. deick pettingill says:

      Heritage is right on re the problem. It's SPENDING spelled with capital letters…and it is not Social Security that is creating or has created the problem because its revenue has always exceeded the outlay and will continue to do so for the next 20 years or so. Perhaps addressing the age for eligiblility might be a solution but it is not raising the rate on Social Security. Politicans only dream of spending more of the taxpayers hard earned money. Politicans only know how to rip off those who work, earn, risk and produce all their working lives and then turn around like they did in the 90's and double dipped by taxing Social Security benefits which had already been taxed on the way in to the government during their earning years. Trust Fund Pension is a misnomer because it is DISTRUST Fund Pension.

      One of the main reasons for smaller government is that you can't Trust any of the Politicans…be they Democrat or Republican. Hang TUFF HERITAGE.

    4. James Michael Tierra says:

      Please stop with the 10 year balanced buget, stop the runaway spending of our granchildrens future and not raise the debt limit. The US takes in over 2 trillion dollars a year thats enough to make interest and principal payments. We can then start to defund programs that do not work and our elected officals know it. A balanced buget means nothing if they raise taxed to balane the buget. This is I think our last chance to bring real change to our spending problem.

    5. Ken Jarvis - Las Veg says:

      Obama is TRYING to Pay off the Credit Card
      that Bush's Maxed out.

      What has the GOP Done? NOT ONE THING, EXCEPT BITCH.

    6. Lloyd Scallan (New O says:

      Does anyone really believe anything Obama or his lacky Geithner says about anything. Simply, this bunch lies for a living and are extreamly good at it. They have an agenda to destroy this nation as we know it. This is exactly the meaning of Obama words "transform this nation". The question no one asked is transform it into what? Now we know.

    7. AT, Massachusetts says:

      No matter which way this goes the liberals have the upper hand in shifting any negative outcome onto conservatives because Obama will have the veto power on any rational plan. Which he will use under the premise of saving an entitlement of someone, and portray conservatives as "nasty" and "stingy" who protect the rich. The growing size of the unemployed and the dependent class is the enemy of anyone willing to do the right thing. The politicians are going to do whatever suits their future, period. They are conflicted, corrupt and gutless. I say Drukenmiller is correct, and the markets might rally, but I say briefly until they see what these knuckleheads might actually do. I say they must extend retirement immediately and move toward a total phase out, and put together a basic medical plan for true indigents.

    8. Bill B, Michigan says:

      Excellent analysis and suggested method of easing the crisis on a short term basis. Too bad that Congress doesn't believe they have to live within their means as we do.

    9. Ken, Madison, WI says:

      Very good analysis. I am concerned, however, about Obama and Geithner's dire predictions. They control whether US debt payments are made. I keep wondering whether they intend to turn their dire predictions into reality by not making debt payments, forcing the country toward default, and then trying to make political gain out of it by blaming the GOP. They have already shown that they will tear the country apart for political gain, so I would not be surprised if this were their strategy.

    10. Lois Yungton, Bloomf says:

      Why can't we cut the aid given to other countries as well as

      not lifting the debt limit. Aid to other countries is a huge amount

      of US money.

    11. Mary Jo Alton, Atlan says:

      This is a typical scare tactic of our government – we must pass TARP now, we must pass our $787 billion stimulus package now, everything is a crisis that only our government can understand because it's far to complicated for the average American and only they can fix the problems. But this article captures the real crisis which is the addiction to spending and those that aren't spending are still enabling it. As Stanley Drunkenmiller states, the central concern is the perception of the rest of the world and whether America is getting its affairs in order.

      This will be a real test for our government. The Republicans need to hold the line and Democrats need to compromise. The spending has to stop, but my only fear is our Republican Senators — most of them seem to still be in functioning in a perpetual state of oblivion.

    12. Jim Buzzell says:

      I am continually dismayed by our congressional representatives; there are some who were recently elected to congress who seem to understand, borrowing to pay the interest on our debt only incurs more debt. We at home know that if we continue to borrow just to cover our interest payments, and do not rein in our life style, and habits we are headed to bankruptcy court. That said, since the federal government continues to have revenue coming in every month, that maybe we (our congressional representation) need to cut departments, and agencies, budgets, and by enough to pay our interest payment each month starting now. Congress is the authority, they cannot blame it on the president, they wield the pen, the president only abides by the legislation laid down by congress, and if there is a veto proof majority of congressional representation that sees it the same way the president has no choice but abide by the congressional mandates. All it takes is enough guts to "STAND UP"!

    13. David, VA says:

      In my opinion, your article makes a glaring and important error – the debt in incorrectly stated at approx $45,300 for every individual in the United States. Financial debts are only valid for those who will repay them!

      Since about one-half of the citizens and legal aliens actually pay taxes, the debt is almost double – $90,000 for everyone who will be taxed.

      Add to this, the unknown number of illegal aliens tolerated within our society and enjoying the benefits of our great nation – including subsidized medicine, food, shelter, transportation, and education. Estimates that up to 10% of our population is resident illegally. While a few may contribute taxes in some manner, estimates are that the majority do not, thus making the burden on tax-paying citizens even higher – possibly in excess of $100,000.

      Stop ignoring the ballooning burden to the shrinking number of citizens. This is a real problem that many chose to downplay with numbers games. Don't add your voice to theirs.

    14. Rick Dingess, Salem, says:

      As soon as I read what Obama has said I could just hear those words coming out of the mouth of that weasel, Tim Geithner. I disagree with all those that say Obama is brilliant…I think he is the shining example of very average intelligence, unable to think very analytically on his own….and so many liberals laughed at G. W. Bush!

    15. Clearhead, U.S.S.O. says:

      A look at the history of mathematics reveals that basically, arithmetic hasn't changed since the beginning of time. How then can America buy hook, line and sinker the convoluted 'mathematical principles' put out by a few self serving and America hating hoodlums? Have the 'progressives' been competent enough at their traitorous 'dumbing down America' program to make it work on the majority of us? Apparently so, if we accept and submit to falling voluntarily further into the deathly financial abyss they have created for us, (not 'them')

    16. Dr. Henry D. Sinopol says:

      The debt limit has been raised numerous times. It has been raised by lifer Republicans and lifer Democrats. Why is Heritage spending time either attempting to educate itself, or others about something it has accepted for years.

      It would seem public opinion, recent crisis issues and public relations guide actions. Focus on an issue…Remember health care? We still have it and the lifer Republicans & lifer Democrats are laughing all the way to collecting their life-long perks.

    17. Redfray, Pea Ridge, says:

      I hate to disagree with Heritage Foundation, but the only way the budget will get balanced, is by cleaning up Washington D.C. That will not happen without some type of force. A good look at history tells us America is in for some rough times that may include war. The tax money of our country is being miss used, because politics is a career that requires reelection. To get reelected you need money, and where is the largest sum of money, it is taxation. Programs that use tax money to support the public, the money can be converted into vote getting monies. Just tell them, unless you vote this way, you will lose your free benifits. If tax money is being used to support organizations, they will vote for there job, before voting for a good government. We need controls over the government that can not be underminded by the law. The law can not be controlled by the law, or the law will dominate it subjects with social problems, that will lead to civil war.

    18. Kevin H, college par says:

      The Debt Limit is not something for policymakers to play games with. They must raise it or face a national and global economic tailspin.

      The Debt limit was raised a record 17 times under Reagan. It's been rasied 3 times under Obama – and was raised 7 times by both President Bushes. Suddenly, conservatives are against it – even though the House Republicans votes to raise the debt ceiling by 8.8 trillion in the Ryan budget.

      Yes, 8.8 trillion. That's the amount everyone who voted for the Ryan budget also voted to raise the debt ceiling.

      Talk about ultra-hypocrisy.

      • Raymond M. says:

        Hey Ken, have you not read any if the Heritage articles on the debt ceiling? It makes no difference who might be President, Congress is a financial monster that decides what it wants to eat, when it wants to eat and how much it wants to eat.

    19. Robert, North Richla says:

      We know where Obama, Geithner and Reid stand on this issue. And some of us know where little johnny, baby eric and mealy-mouth mitch stand. Would John Boehner, Eric Cantor and Mitch McConnell have risked their lives (and their fortunes) and signed the Declaration of Independence? No, they would have compromised with the King. We know the debt limit will be raised. So, we need to define failure now – so Rush and little johnny can't tell us what a great victory they achieved. The Speaker is calling for cuts against the baseline over ten years. Those are not cuts, and anything Congress plans "over ten years" never happens.

      1. Cuts against the baseline over ten years = total failure.

      2. Accounting tricks and expired obligations = total failure.

      3. Any deal that does not require at least 3 more votes before next year's election = total failure.

      Obama wants a deal now that will eliminate the need for any further votes before the election, which would render Congress lame. We need another vote in the fall (to force republicans to act); we need another vote before the primaries (same reason) and one more vote in late October 2012 just before the election.

      A $500 billion increase in the debt limit would require at least one more vote before the election, and at that time a larger increase would settle the deal. The bottom line is we cannot cut enough spending without touching the 100 million welfare recipients (whose benefits average $36,000 per "household") who do nothing in return for those benefits (besides drugs, crime and black market). Fool us once (November 2010) jokes on republicans; fool us twice (failure on spending resolutions) jokes on us.

    20. Joel in AL says:

      The first consideration of the left always seems to be how can we benefit from this politically.

      They say, again, the only way to avoid a disaster is to do what they want and increase the debt ceiling with no conditions. Not only are they using their usual "it's a crisis" tactic to get what they want, I believe they are also setting up the argument to blame the GOP if the economy does not improve or gets worse. For 2012 talking points will be that the GOP's failure to pass the debt ceiling or to pass it fast enough stopped the recovery.

    21. Jim Patterson, Dulut says:

      For those of us who have been around for awhile,we have all seen commissions issue reports, such as how to save social security, etc. that have been put onto a shelf and forgotten. Same with Prezbo's recent commission on getting our budget in order except now that the Repubs have put forth their own pland the Prez actually has to have or at least seem to have a position. Well, he really doesn't. All he can do is nay say the Republican plan, point to the commission reporrt as some sort of basis for negotiation and then once blast the Republican plan without having one of his own. his talk of "responsible" cuts is code talk for "you gotta do it my way" but he doesn't have a way expept spend, spend, spend.

      time for money train to stop!

    22. mike hutchings says:

      somewhere beneath a hollow sea….

      lies the ruins of what would be…

      somewhere a hand sifts the ashes…

      and tosses them onto the water….

      go from me loss, for i am small…

      who did think once i was a giant…

      not a builder but a wrecker of dreams…

      a destroyer of what is greater than me…

    23. Robert Cassatt , Ham says:

      When a fish stinks it stinks from the head! Obama and the rest of his motley, free spending crew should resign! It does not take a genius to survey and eliminate a substantial number of the over 3000 government departments, commissions,agencies… etc! Start with the Department of Energy{ budget in billions} Just what have they accomplished? If we can find the one cow with Mad Cow Disease out of millions.. they should be able to track the " Speculators" who are causing the outrageous price of gas and put them out of business!

    24. toledofan says:

      It's becoming crystal clear, at least to me, that the Democrats have no desire, will, or plan to reduce the spending. The non-action speaks volumes and again clarifies that the Democrats can't be trusted with managing the military, the economy or the government. The Heritage Foundation has been clear and consise on some really good measures to get us back on a sound path, but, the lights are on, the windows are wide open and nobdy in Washington is home. The arrogance of this administration is sometimes thicker than molasses and what's even more pathetic is that 48% of the people say this President is doing a good job. P.T. Barnum said there is one born every minute, I guess he really was right.

    25. George Colgrove, VA says:

      Geithner (Sec. DoTr) wants to raid federal workers Pensions to pay for federal spending. This is an emotional ploy to make us feel sorry for people who are getting lucrative pension deals. The reality is if Giegner takes 100% of federal workers pensions, there will not be enough to buy coffee for every federal worker.

      Federal workers Pension.

      This is funded by only 0.8% of the federal worker’s salary. For most feds (there are several special cases with limited scope I will not get into) the annual retirement payment is 1% of the average of the federal worker’s top three annual earnings times the number of years they worked for the feds. If you retire at the Minimum Retirement Age (for most federal workers this is 57) the percentage is 1%. This percentage goes up to 1.1% if you retire at or after 62. This is a lifetime benefit! Incidentally, congress members get 1.7% on their three-year highest earnings average for a maximum of 20 years. It would take a federal worker 34 years at 1% to start scoring more retirement than a congress member at the same pay.

      - Average federal worker non-benefit earnings (cash) = $82,000 (2010 numbers – federal workers went up a little in 2011)

      The federal worker also gets this pension on top of a lucrative Thrift Savings Plan (a full match of the first 5% of the federal workers cash payment). Something very few private sector employers would provide. For the federal pension, as I said above the workers contribute only 0.8% (or $656 annually or $25.23 per pay period for the average federal worker’s earnings). For all 2.7 million federal workers, this amounts to $1.8 billion (we are going into debt by $4 to $5 billion a day!) for the entire year. Considering pensions are not stored in an investment vehicle. It is paid out of collected tax money. There is no money to collect from other than what has already been collected from the federal worker’s paychecks – which in reality has already been spent by the feds. There is no “lock box” for pension funds.

      This is a pull on heart strings that really amounts to nothing. Geithner has been using bullying terms in his attempt to force a debt hike to over $16 trillion. We cannot allow for this. And we cannot allow him to pretend that this appearance of a cash grab means anything. It is an illusion he is creating to con us into another hike and further plow us into a situation we cannot get out of. When all analysis suggests that the federal pensions are very much underfunded (The CIA is asking for $0.5 trillion to cover a shortage to their pensions alone that they did not have enough “intelligence” to foresee.)

      This economic war is between DC and the Nation. It comes down to, are we going to let the ruling/federal class succeed in destroying the nation for their self-serving needs? Or, are we going to do the smart thing and save the dollar and the country?

    26. West Texan says:

      Thanks for sharing HF's road map "Saving the American Dream". Although I did a quick read over the plan, it does appear sound. The only area where I may differ is HF's recommendation on how to improve SS and Medicare. Like many Americans, HF appears to accept the federal's tether on these social entitlements, regardless of the plan's suggested market choice. My strong view is that retirement and healthcare oversight must be returned to the individual states where such decisions constitutionally belong. The federal government should have no say whatsoever in the social welfare and healthcare needs of the states' respective residents. These are domestic concerns that belong solely at the state and local level of government. If certain states want to pool their resources so as to offer more choice, let them form a compact. Congressional approval of interstate and/or foreign transactions is the only legitimate role federal government has in states' business.

    27. Don Ruane says:

      What part of "We Are Broke doesn't Congress understand.

      I think our best course of action, is to form a Lunacy Commission to declare all of Congress insane, for not knowing we are broke and shipping them off to a FUNNY FARM.

      We will have no problem replacing Congress with 535 individuals selected by lottery of all registered voters. It will be a lot cheaper then elections and we can hold the lottery on the steps of the Capitol Building for all to see.

      I think it is worth a try.

    28. Dr Jack Ryan, DC says:

      The AP report is correct, for once. You can view the US Debt to the penny here:

      Scroll down a little to a green bar that says: "see the US Public Debt to the Penny"
      and click on it. Or go to:

      Scroll to bottom left under "Highlights" and click on "debt to the penny".

      I go to this source for the straight scoop. Using the archived numbers and Excel you can verify the data without the help of the CBO, CNN, or NYT/Krugman.

    29. Kelly at Fairhope Al says:

      The U.S. Government did not become so heaily indebted because of lack of revenue it became so from excess spending. I listen with disgust to the various politicians, usually Democratic, who ignore the reason for indebtedness and push for increases in revenue( tax increases). If the y truly wished to increase revenue adress the jobs issue and the malaise in the econlmy. They won't because they wish to be reelected and probably will.

    30. ThomNJ says:

      I agree with West Texan – and I will go a step further regarding Social Security – let's abolish it. Let's put together a phase out that leaves those in it already covered, and those of us nearing tha retirement age the opportunity to opt-in or opt-out. If we opt-out, we get our cash (or some portion thereof) back to invest on our own. We eliminate the payroll tax on idviduals and keep it on corpoations for a specific time – only to help cover the cost of those still in the program and those taking the opt-outs. Allow all the younger workers below a specific age cut-off the opportunity to put their 6.2% that was the payroll tax away into a private plan of their choice – tax-free. There is more to this than the brief sketch I just gave, but we ought to get rid of these socialist program all together.

      Same goes for Medicare – I don't want it – I'd rather contract for my helathcare insurance on my own and the heck with the federal government telling me what I can or cannot have.

    31. Dennis, FL says:

      I would like to see more attention to ideas proposed by Andy Gause.

    32. BRUCE R. MCMASTER DA says:


    33. TC- NV says:

      The politicians have been on a tax and spend course ever since they gained the power to declare a deficit and continue to print more money. This practice has led US to where we are now, under a huge mountain of debt with a currency that has been devalued by inflation to a small percentage of its original value. If we don't somehow bring this insanity under control, we are going to crash the dollar and bring about a global currency (all of which may have been planned and implemented by the banksters). May God help US, because I doubt if DC will.

    34. Tom, MN says:

      Isn't it amazing we continue to let approx 645 elected officials and about 100 White House staffers screw up 325 million Americans lives in the pretext they are doing us a favor?? We elect people to set fiscal policy that have no experience or apparently a clue on what happens. How are they doing? Monetary policy is set by the Fed. When the Fed quits being independent of the political party in power, bad monetary policy gets set. America will not default. The government just delays interest payments and non-essential payments until it gets squared away. I reccommend Congress' salary as non-essential as a first start. The sky is not falling. Debt still gets serviced. The government continues to pay its obligations. The government gets a temporary halt to the peoples credit card. They hit their maximum credit limit and are temporarilly banned from borrowing more money just like John Q Homeowner has faced at some time. Checks and balances. We don't have them right now and it is our fault–the voter.

    35. Don Creech, Port Orc says:

      The Secretary should realize he has a fiduciary duty to his country and its citizens that is greater than his apparent instruction to pave the way for the President's re-election. No banker of any stature allows an undisciplined debtor to continue borrowing money. In the real world, individuals and business have to go to bankruptcy court to get relief. It is time for the Secretary to address the profligate spending and honestly address the issue with country.

    36. RickM says:

      We have to get smart. The same old tricks won't work. We have to fix our real problems, then we can fix the debt. Simple stuff…

      Free people don't act like slaves. Think for yourselves.

      Read “Common Sense 3.1” at ( http://www.revolution2.osixs.org )

      Wake up America, we don't have to live this…

    37. A. Terranova, Ormond says:

      If the continual hand-wringing on this issue from both the left and the right were real, I would be paying close attention. But since this is all show and no go, it's not worth getting excited about. No one in either party, with the exception of a very few who do not have any backing, has the wisdom, the will or the stomach to do the right thing and that would be to NOT to raise the debt ceiling. So our representatives will keep wringing their hands for the cameras and reporters but they, who are bound by conscience and their oath of office to protect the American public and to uphold the U.S. Constitution, will fail to carry out their mandate. The thing is, history tells us the end will come. It will be unexpected, brutal and catastrophic. But our politicians already know that.

    38. John J. Pellegrino i says:

      The Liberals running the country now are not really Americans in my opinion. I think the spending is on purpose to bring our country down. One of the radical rules of Saul Olinsky says to bring down a democracy, spend its money and backrupt it! I have probably paraphrased it, but isn't what what is happening? The Liberals think they will be able to rebuild this country into a good liberal nation that will fit better into a New World government. Check the UN to see how that will work. The Liberals are forgetting the Muslims, and I believe Obama is one and favors them over everyone else, even though he lies about being a christian. The Muslims intend to assimilate this country into their version of an Islamic world government and they will do anything and say anything to program the sleeping voters of our country into voting for them as they infiltrate into positions within our government, locally and nationally. What is wrong with people that not enough people have the gumption to talk about this and bring it out in the open. the Liberals have allowed the Muslims and the Illegals to use the "Race Card" on us.

      Black Americans and white Americans had better wake up, we are in the process of losing our country. Everyone is talking about what the politicians should do and they are forgetting about our Liberal News Media that thinks it is the 4th branch of government. All left leaning news outlets, papers, magazines, and on air programs should be boycotted. this hasn't been done but should be tried. The News Media is not on the American citizens side, they are agenda driven, and do everything they can to program the people, just as education does it today. It is time to wake up. Just my opinions,

    39. F.D. O'Toole says:

      Don't doubt for a moment that debt limits are important. Businesses that want to borrow are often saddled with debt limits by the lender as a condition of obtaining the credit. Not only debt limits but other financial ratios that must be managed as long as the loan or credit line is outstanding. If the business fails to meet these covenants, the loan can be recalled ot the line canceled. These are called debt covenants and they are imposed to ensure that the loan is repaid and the business is managed in a financially sound manner.

      The USA is one huge business that borrows 40% of each dollar spent. Does this sound like a well managed business to you? Can Geitner claim he doesn't understand the need to impose limits? Can Obama? Well, maybe Obama.

    40. Brenda Boring says:

      QUIT SPENDING MONEY? I don't use credit cards……even when I had all I needed. I love yard sales.

    41. West Texan says:

      Ken said "Obama is TRYING to Pay off the Credit Card". Trouble is he's doing it with working Americans' credit card reducing their future savings, buying power and quality-of-life. If you want to support his spending habit, go for it. I don't care to.

    42. Beverly Bradshaw says:

      Can't these people in Congress and the President see how horrible the situation is and what they are doing to the American citizens. They don't worry about things because their salary, insurance, benefits are paid by the poor people so they really don't care how much hurt they put on us and the future generations. How could they have let the debt get so out of hand. None of the other presidents allowed the situation to get out of hand. Fire this president and the entire Congress and get new blood in there.

    43. Jeanne Stotler,Woodb says:

      I've heard a lot of rhetoric about balancing the budget BUT no one is starting at the top to decrease spending. #1. Obama needs to get rid of those csars and Michelle, her excess staff #2.Congress needs repeal their salary increases for the last 2 yrs. (why should they get an iincrease and retirees not?) #3. Give early retirement to any Gov't . employee within 2 years of retirement, these jobs should only be filled from within. #4. Audit EVERY Dept. in the gov't, get rid of extra baggage, #3 will help this along. Freeze all pay. #5. Reform Congressional retirement, no more "salary for life" nor free hospital Ins. for life. 99.9% of Congressmen already have their retirement accounts and can afford health Ins. #6. Pass laws, that any use of military planes for personal or campaign purposes by any member of Congress or the Executive office, be paid for out of pocket, DNC should pick up all cost for these trips BHO is making to push his adgenda. Now that these are done and audits show waste, eliminate dept's not needed, ie: education, Homeland security for example, give the States back their authority over these and other expenses. #7. Close the border and enforce the laws of this country and stop the belly aching about the "poor illegal immigrant" They made a choice to break the law and if we did the reverse and went to any of these countries illegally we would find our A–es in their not so nice jails. Along with this refine the 14th Admendment which was not suppose to make children of illegals citizens, If this admentment were read, it says to those SUBJECT to our laws and Constitution. No Amnesty to anyone, regardless of their land of birth, they go back and wait at the end of the line and work to better their countries not tear down ours.

    44. Margaret.maine 04239 says:

      oh they understand but insist on ignorence…… how long they will get away with their crap i think is up to usss i dont see nothin changing at alll with exception to all obamas lies

    45. John Arizona says:

      Ken Jarvis – the typical liberal "blame Bush" for our debt. Wake up Ken! How much did Bush increase the debt, and how much has Obama? Obama wants to reduce the debt – by proposing a budget that increases the debt? By spending money we don't have for projects that have yet to pay off (wind turbines, electric cars, high speed rail, etc)

      Only a union guy like Ken Jarvis could support the actor in the White House.

    46. Jack Coleman, Port T says:

      Jeanne Stotler,Woodbridge, Va,

      I agree with all your commentsl.

      Many thanks,


    47. Bobbie says:

      What have democrats done besides get us here? For every threat (Obama gietiner) towards taking the appropriate measure to correct, are what those who threaten will go out of their way to make happen. there is no line democrats won't cross. There's no reason for negotiation as democrats will never hold their end of the bargain. They're weak and indignant.

    48. Renny, Maryland says:

      First, he will not come to the table until 8PM the last day!!

      Second, he want's the debt limit increased!!

      Third, he will not cut spending!!!

      Based on these three things, what is the majority in the House going to do?????

      If the House does nothing and stands fast, the big "he" will just do it illegally, because he doesn't care and no one will do anything about it!!!!!

      Sad, but we all know it but won't admit it!!!

    49. Pingback: President Obama, The Little Stinker, Continues To Lie In An Attempt To Confuse Americans About The Debt Ceiling!…

    50. David Bess, Carson C says:

      Once again KJ has, as always, spouted that it's all President Bush's fault not obama's. Well, he took the job, and now it's his responsibility. He has done more to help his "RICH" friends than all of the consertives before him.

      However one nice thing has come from this blame game. After 28 months of obama everything is still President Bush's fault. Therefore it figures that 911 was Clinton's fault as Bush had only been in office for eight and half mounths, way short of his 28 month forgiveness period which will probably be extended to 48 months.

      That was fun. Now that all of us consevitives that voted aginst obama have been labled RACIST can we label all of the liberals that won't vote for Michelle Bachman or Sara Palin as SEXIST. Hope so.This was fun too.

      Seriously, rasing the debt limit is tad amount to creating national suiside. As we are so worried about defaulting on, not just any debt but, interest payments. Dose the administration beleive that raising the debt limit won't send a bad message to the world as a whole and our debt-holders specifically. The message will be that the U.S. has no idea of what the hell their doing. It will also instill great concerns about lending us money. It will also make them consider selling off the debt that they hold at a discount. Kind of like a short sale. Once this happens the value of the dollar will drop drastically, creating both inflation and a depressed society.

      Where as if we do the responsible thing and cut massive government spending it send a message just the opposite. "America has a problem and their dealing with it." Anyone who has ever been in business knows this preception is real. Businesses don't spend their way to properity, the cut, cut and cut more until they are fically stable. The only way the government can succeed other than cuts is by taxing,taxing and more taxing of its people.As one of the highest taxed populations in the developed world,are you personally ready for that. When they've taxed the RICH into poverty then the MIDDLE CLASS will become the target, and finally the POOR until there's nothing left.

      Sorry about the puns at the beginning, but sometimes you just have to have a litle fun.

    51. Blair Franconia, NH says:

      It's not true that the government's going to default.

    52. Dave W. Provo. UT says:

      When my son maxed out the credit card my wife and I had given him to pay for college expenses we canceled it and had him cut it up, He then dropped out of school and began paying it off. A year later he was able to return to college and we would pay half of his expenses when he had the other half up front. Now 15 years later he manages his finances well and meets all his obligations. We are sure that had we not taken these measures he would be in debt up to his neck today. Obama apparently never learned the consequences of debt or when elected President he would have cut up the nation's credit card and we would not be in the horrible maxed out situation of May 16th. We must deluge our congress we the message–CUT UP THE CREDIT CARD AND START PAYING DOWN THE DEBT.

    53. Pingback: Acabando con el mito del límite de la deuda | Heritage Libertad

    54. Denise, Utah says:

      Ken Jarvis, what planet are you living on? Obama is paying off the credit card that Bush ran up!????? You can't give examples because what you say is so ridiculous! Bush is to blame too, but Obabma has caused the Federal government to explode into a gigantic, poisonous, nuclear mushroom cloud that is going to destroy the whole county. His health care bill alone requires 16,000 new IRS agents just to enforce all the new Federal laws and mandates. When are you ever going to get it? Governments are destroyers of wealth. I hope you enjoy the liberal utopia that these idiotic politicians are creating. It sounds like a hell hole to me. I hope you've got a year's supply of food and water, Ken. Then I hope the Federal agents from some bloated bureaucracy come and confiscate it and spread it around to those they think are less fortunate and you end up starving in the street. Then, I think you will finally understand that our government is trampling on the Constitution. We are no longer free.

    55. jackie d,texas says:

      how about the government stop robbing the people to grant themselves pay raises and perks?

    56. Kevin H, college par says:

      Without doubt, President Bush has done far more to increase mid and long term debt and deficit than Obama. It's not even close. Take a look at the 2001 and 2003 tax cuts, the 2003 Medicare Program, and the 2 wars. Those, along with the economic downturn, are the biggest factors of our deficits and debt. Any honest economist will say that.

      Somehow, the Republicans will lead you to beleive that cutting taxes further will help. Tax increases MUST be part of the solution, along with spending cuts.

      This cannot all be done by spending cuts alone. If we look back over the past 3 decades, we have all the economic history we need – and it's incredibly obvious the conservative economic principles simply do not work, and have never worked.

      We need to cut spending, let the Busgh Tax cuts expire and slow the growth of rising health care costs (which Obamacare attempts but only time will tell if it works).

      If anyone says taxes are too high, they simply don't know anything about taxes. They won't be able to tell you what the tax rates were 20 years ago, 30 years ago or 50 years ago. They probably won't be able to tell you what the tax rates are right now – they just regurgitate the misleading info thrown at them.

    57. randydutton says:

      This isn't 'Myth Busting', its "Lie Busting'. Progressives know very well that they're lying so as to make conservatives appear to be 'the bad guys'.

    58. To the one who mentioned about the Tea Party agenda, as if everybody agreed it was a problem, please consider this viewpoint. And about 10 more from different angles.

    59. To the poster who posted about the Tea Party agenda, as if everybody agreed it was a threat, please consider this viewpoint. And about 10 more from different angles.

    60. Don Ruane says:

      I do not care to mix words on who got us into debt.

      I want Congress to cut the budget by 50% and the government workforce by 50%.

      That is the one and only solution to our national debt problem and the quickness way out of our debt crisis.

    61. Pooh, Dixie says:

      Given, that enough revenue comes in to pay debt, and that Geithner has been mainly wrong about outcomes,

      A modest proposal: Put raising the debt ceiling on hold. Let the administration and the left-wing pundits howl "catastrophe".

      Then, after the frenzy reaches a suitable pitch, let some respectable members of Congress join in the modest proposal: furlough all or parts of cabinet departments, without pay or benefits.

      The public will then see where the administration's heart lies. Defense? Justice?

      Or with authoritarian bureaucracies?

      - Such as the EPA (no energy, exploding CFLs, etc., etc. to the satisfaction of a former Socialist Commissioner)

      - Transportation (CAFE standards for 60 mpg; cry 'havoc' on the highways).

      - Endangered species? (such as lumbermen sacrificed to a sub-species of owl, or California agriculture to a Delta smelt, or a canal to a Snail Darter).

      Let everyone see who they are willing to throw under the bus.

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