THE GOP-Created Debt Ceiling CrisisPosted By Rod Kaufman |
"In theory if the current budget matched revenue (taxes collected) there would be no need to borrow money assuming debt service is included in budget and no need to raise debt ceiling."Originally Posted by Chris PaganIn theory if the current budget matched revenue (taxes collected) there would be no need to borrow money assuming debt service is included in budget and no need to raise debt ceiling.
I own a business and have gone to a bank to borrow working capitol. The first question is "What do you need the money for?" The second question is "How do you plan on paying it back?"
If I answered the second question "I'll just borrow some more money" I would be shown the door and not get the loan. The bankers are smart enough to know that I probably won't be in business with that attitude. This is how our government operates and it needs to change.
Personally if I were in McCarthy's shoes I would use the debt ceiling vote to at least get some accountability for future spending and "get something in writing" that shows a commitment towards a balanced budget.
I understand the possible ramifications of possible default but the spending issue is as important. How I see it if he capitulates the gap between revenue and sending will get much worse (no matter who is in the Whit House). Sometimes you need to get burned to gain respect for fire.
For the record I was upset at the spending under Trump.
Chris
Needless to say that's not reality.
The situation is analogous not to "I went to the bank to borrow money and..." but to, "my credit card statement is coming due but I'm not going to pay it." In other words, the money had already been borrowed and spent. Now it's crunch time and it has to be paid back. The government can't file for bankruptcy protection against its creditors. So it either raises the debt ceiling or it defaults on its obligations. That's reality.
I see Biden, McCarthy, Jeffries and finally, McConnell are going to meet on May 6th to hopefully reach an understanding. Now we have to hope and pray cooler heads will prevail and the country won't be destroyed by some MAGA extremists in the House...