Nuclearian Loc: I live in a Fascist, Liberal State

The federal government will default on its debt only if President Obama wills it. House Republicans, by refusing to raise the debt ceiling until they obtain budget reforms, may be the country’s last hope to avoid a financial ruin.

Each month, the government collects $250 billion in taxes, and pays $23 billion in interest to public bondholders. If Washington can’t borrow more money, it will not be able to spend all that it has planned. It comes down to who gets paid and what doesn’t get bought.

Americans are not deadbeats. Families without enough money to do all they like pay their mortgages and credit cards, and cut back elsewhere. So must Washington.

Treasury Secretary Lew says he can’t set those priorities. In an emergency, as the government’s Chief Financial Officer, that is exactly what he is paid to do. However, cutting back entails postponing, for example, the expansion of Medicaid as required by the Affordable Care Act and grants to universities for faculty summer money.

By not raising the debt ceiling, congress is not reneging on bills already racked up. The existing debt—which can be serviced by paying the interest due—covers those obligations.

Raising the debt ceiling simply permits Congress to run up new bills. And abandoning that debt ceiling discipline, as many in the financial community suggest, to let Congress to spend as it pleases would be the peak of folly.

Studies by the Congressional Budget Office and Medicare and Medicaid actuaries plainly indicate if the government continues taxing, spending and borrowing as current law requires, then all Americans, and not just the wealthy, will be paying greater shares of their income on taxes and private health insurance. Federal spending on Social Security and health care will rocket and squeeze out spending on roads, education and other worthwhile activities.

Over the next several decades, budget deficits and the national debt will jump to unbearable levels.

The interest rates investors demand to purchase government bonds and resulting debt service will cripple Washington much as those did Greece and Italy in the years before their crises.

Economic growth will slow to a snail’s pace and working Americans will become much poorer. In the end, Uncle Sam will default on its bonds and pension obligations to the elderly, and many Americans will again be deprived of decent health care.

The president says lift the debt ceiling and he will negotiate on those issues. However, any solution requires raising the Social Security retirement age from 66 to about 70 to accommodate Americans living longer, and finally doing something about the prices of health care services and drugs.

Yet, Obama has repeatedly stated he will not raise the Social Security and Medicare eligibility ages. During the fiscal cliff talks, he refused to consider with Speaker Boehner entitlement reforms to address escalating health care costs.

In the United States, the average cost of an Angiogram is $914 but in Canada $35, the price tag for an MRI is $1121 but only $319 in Holland, and the painful list goes on.

Neither Democrats nor Republicans are willing to address those discrepancies in the implementation of the ACA or proposals to replacing it.

Only taking the money away will force politicians to deal with the painful truth: the price of health care, not access, is the real problem, and America’s health care system is likely the most inefficient and bureaucratically corrupt on the planet.

When a board of directors considers whether to permit a CEO to take on more debt, it asks whether the business will spend the money wisely.

Americans would be nuts to want Congress to lift the debt ceiling so that the Washington establishment can continue profligate policies that will eventually bankrupt the nation.

Peter Morici is an economist and professor at the Smith School of Business, University of Maryland, and widely published columnist. Follow him on Twitter @PMorici1.

octive9

House Republicans are causing the ruin of our economy. That has been their goal for years, just to make Obama look bad. It is backfiring on them. Their poles are the lowest they have ever been.

Most of the arguments in the original post "House Republicans may be the country’s last hope to avoid financial ruin" are so silly that it is not worth the time to respond to them.

TroubleshooterTim Loc: People's Republic of Oregon

Octive9,
It really has little to do with party affiliation as to who caused the issue. Both parties are to blame, like two junkies who just can't get enough money to spend.
After extensive research I have come to the conclusion that we have already gone over the Fiscal Cliff (it's smooth sailing until we hit bottom).
You can find more on this in the discussion thread titled
[I] "The Sacred Cow nobody is talking about" [/I]

Warning! Participation in that thread my lead to indefinite detention

octive9

[quote=TroubleshooterTim]Octive9,
It really has little to do with party affiliation as to who caused the issue. Both parties are to blame, like two junkies who just can't get enough money to spend.
After extensive research I have come to the conclusion that we have already gone over the Fiscal Cliff (it's smooth sailing until we hit bottom).
You can find more on this in the discussion thread titled
[I] "The Sacred Cow nobody is talking about" [/I]

Warning! Participation in that thread my lead to indefinite detention[/quote]

I agree that both side have some blame, but the Republicans have made their main issue to make Obama look bad at the expense of our economy.

Considering what Obama inherited, and the obstructionism he has been dealing with from Congress, I have to put most of the blame on Republicans, especially the Tea Party.

TroubleshooterTim Loc: People's Republic of Oregon

I can respect that. I do not agree with the tactics and name-calling used by either party. What Obama inherited was a 9 trillion dollar debt, which in 5 short years ballooned to 17 trillion. But the debt is only a small part of the story. Neither side wants to address the Unfunded Liabilities, which is the real problem.
http://usdebtclock.org/
Look at that bottom line, yikes. There is no way we will be able to afford that. And, neither side wants to look at it.

octive9

Speaking of unfunded liabilities, Bush inherited a budget surplus and 5.6 trillion debt. He left with a trillion dollar deficit, 9 trillion dollar debt and the worst recession since the great depression. Two wars, Medicare Part D and pay for them with a tax cut, what kind of logic is that? Answer: Republican Tea Party logic.

At least Obama has gotten the deficit down to about half what he started with, in spite of Republican obstructionism.

TroubleshooterTim Loc: People's Republic of Oregon

Obama reducing the deficit (while adding 8 trillion to debt)? Where do you find that?

I found otherwise....
http://blog.heritage.org/wp-content/uploads/budget-create-deficits-6004.jpg

The Obama Admin. hasn't had a budget for 4 years and you defend the position that he reduced the deficit spending?

TroubleshooterTim Loc: People's Republic of Oregon

The economy that Bush inherited can that be attributed to Clinton --> or Newt Gingrich and the Republican "Contract with America" (that Clinton takes credit for)?

The way monetary tax policy works is that each time money changes hands the Gov't taxes it (essentially). If they cut the taxes, money can move around more freely (thus gaining more income through taxes by changing hands more).

octive9

I attribute the Clinton economy to the tech bubble.

If you are talking about trickle down economics, it has never worked for anyone but the very wealthy. The rich get richer and to poor and so-called middle class get poorer.

TroubleshooterTim Loc: People's Republic of Oregon

So what economic pattern are we in now when 48 million are collecting food stamps (highest ever). And our Unfunded Liabilities went up a trillion dollars in couple days. Look at that bottom line, yikes.
http://usdebtclock.org/

octive9

Of course there are a lot of people collecting food stamps. We have been in the deepest recession since the 1930s. The recovery has been slow because the Republicans in Congress refused to pass a jobs bill. There is a lot of infrastructure that needs work, and that is something that government pays for. It creates public sector jobs, which creates private sector job when the public employees spend, which increases tax revenue.

Under Obama private sector jobs have increased and public sector job have decreased. In recessions past it has always been the government jobs that helped get things moving. The Republican hate for Obama has been slowing economic growth.

Mitch McConnell made his number one priority to fight Obama. Speaker Boehner held over 40 votes to fight Obama care, but not one vote on a jobs bill.

Artemis

We are in the republican bully steam roll over the people to get what we want pattern, this also have never been seen before.Face a fact, the republicans have caused more people to lose jobs in order to not have a tiny percentage of tax increase to the wealthy, many from the military industrial contractors who made grand profits due to the war. While our economy was suck'n trying to pay for the war.

Nuclearian Loc: I live in a Fascist, Liberal State

Obastard inherited NOTHING bad. Obastard took over, destroyed things, and when Rep's try and stop his foolishness, they are met with crap like this shutdown and Obastards foolish games.
From 1.7 trillion to 17 trillion? Just during Obastards reign? Come on now. You guys really that vain that you cant accept responsibility?

octive9

You are blinded by hate. Your numbers are not true. Your side lost - deal with it.

Schuler Loc: Santa Fe NM

Ooops--wrongo--the nation's main debt is held by PRIVATE interests--THE FEDERAL RESERVE!!!--the second biggest part of the debt is held by--well who woulda thunk it--'us'-as in US of A pension plans! Contrary to most people's beliefs-the biggest part debt of American debt is in the hands of America's PRIVATE bankers--THE FEDERAL RESERVE BANKS-which are, as I just wrote,-PRIVATELY held!-not public or foreign interests! Ya-Ya Ya-there is plenty 'there' too! So who has the most to lose if there is a 'default'--hint--we have met the enemy and they are bankers! And bankers do not want a default-they stand to lose very-very big-forget interest rates-forget debt ceiling- those really do not matter. Think instead--why are we PAYING these guys (bazillions) to have them LEND us our OWN money? Uhhhh --why does Washington 'borrow' (as in be lent our own money) in the first place? They-which is us -believe it or not-can/could just print whatever they-still us- need and pay the bill. Where do you think the money REALLY comes from? Simplistic --but TRUE.

And as for health care-there is a very simple solution-- because the 'problem' is not the patient or service recipient! We are being overcharged for everything medical. Control costs and the problem goes away. Those dirty, 'ol socialist' commie, pinko, 'whatever',health care systems --like all the other industrialized nations have-do exactly that-they control what providers can CHARGE! And they do not have doctor shortages and the doctors and providers have not FLED those countries and they do not complain about pay and reimbursement rates. They report that the systems are 'fair-- as in 'just'. We need/must do the same-we used to call it 'maximum allowable cost". And don't try to tell me this will cause a shortage of anything-sickness ain't gonna go away. And where will all those 'providers' go--Sierra Leone-Malawi-Bangladesh? Yea- they gonna take their practice/insurance plans/etc. to Zimbabwe-where they will undoubtedly get even richer.! Get serious: they are opposing ADA because they are greedy bastards! Where else they gonna sustain their 'obscene' incomes-hah and double hah! Wise up America: the ACA is just a step in the right direction. If you do not have health care-or you think your current plan is too expensive, then support the ACA by signing up now! Get the facts and you will like it!