A couple of days ago Speaker John Boehner addressed criticism from democrats who are trying to raise the debt limit (the amount that the US Treasury can go into debt). If we don't cut spending or raise the debt limit then the Treasury is projected to run out of money to pay its interest (or medicare/social security) in mid-August.
“What we – and the American people – are asking for isn’t radical. We want to stop tax hikes that destroy jobs; Democrats want to raise them. We want to stop Washington from spending money it doesn’t have; Democrats want a free pass to spend more. We’re in a hole and we want to stop digging; but Democrats won’t give up the shovel.
“I also want to address those who’d suggest our efforts to cut spending could somehow hurt our economy or hurt the markets. If we don’t act boldly now, the markets will act for us very soon. Remember, Standard & Poor’s warned several weeks ago that it may downgrade its U.S. debt rating not over the debt limit fight – but because Washington has no plan to tackle its massive debt. The greatest threat to our economy, to job creation, and to our children’s future is doing nothing. Doing nothing is not an option. The American people won’t tolerate it, and neither will we.”
http://blogs.wsj.com/washwire/2011/05/12/boehner-strikes-back/
Well said, Speaker Boehner. Thank you for not standing down. Thank you for understanding basic economics; and thank you for realizing that we need to live within our means. Draw the bright line and make others choose which side they're on.
Bill Gross, the head guy here at PIMCO, wrote an article called 'The Caine Mutiny part II' talking about why he has a negative outlook on treasuries (Bonds from the US Gov) and has sold all of the ones we had.
http://www.pimco.com/EN/Insights/Pages/The-Caine-Mutiny-Part-2.aspx
I agree with Bill Gross. Good thoughts and a good analogy with the tanker and the Mutiny.
ReplyDeleteOne of the biggest problems the US has is seperation of who spends the money and who gets the services. When a doctor does something "for" me, he gets paid by insurance. So does he cater to me or to the insurance? Obvious answer. When the govt. "provides" stuff for us, do the people "giving" us the stuff cater to us or to the govt.? Do we really get what we want anyway? How much money is spent on bee watcher watchers? Why take our money - money even from people who need it, and force it to be spent on something those people may not even believe in? What really bothers me is when money is taken from every day people in taxes and then spent to help fund something that in the end costs to use - so those who paid the taxes may not all be able to afford to use it.
ReplyDeleteI say, if we want to help those less fortunant than ourselves in this country - redistribute money - to everybody. No bee watchers to see if your poor or hurt enough. Take a set tax - redistribute it - let everybody vote with their own dollars what they spend it on - health care or movies. What you then end up with is freedom, trusting the people. Then people who need help are not forced to use a certain kind of health care (western medicine) learning (no child left behind) etc.!