The current mess in our Federal Government is filling the Blogosphere and mainstream media these days. Most of what we see and hear is presented as fact or news. Well, most of it isn't fact or news. It's opinion, slanted by the political ideology of the presenter. Some of it is so egregious as to be laughable.
Let's be clear about a couple of things. Not raising the debt ceiling and defaulting on our sovereign debt are two very different things. I'm not sure if the media doesn't get that or has simply decided it's better theater to present it that way.
Let's be clear about a couple of things. Not raising the debt ceiling and defaulting on our sovereign debt are two very different things. I'm not sure if the media doesn't get that or has simply decided it's better theater to present it that way.
Default means not paying our bills and not honoring (paying interest and principal) on Treasury Bills, Notes and Bonds. That would not be good. It would damage further the US credit rating and could force interest rates higher throughout the US economy.
Not raising the debt ceiling would simply restrict the Federal Government's ability to borrow more money and further increase our already staggering debt. It would NOT mean default.
Fiscal conservatives don't want the US to default on its sovereign debt. They want to stop, or at least slow, the uncontrolled and unsustainable growth of that debt.
Fiscal liberals want to keep borrowing and taxing and spending like there's no tomorrow. As Wimpy in the Popeye cartoons used to say, "I'll gladly pay you Tuesday for a hamburger today." To fiscal liberals, Tuesday will never come.
Are the preceding two paragraphs my opinions presented as if they were facts. No, they are demonstrated fact based upon verifiable evidence interpreted with a bias toward fiscal responsibility.
As is usually the case in disputes such as this, neither side of the argument is in the right. We can't and shouldn't keep spending at present rates but we don't have to balance the budget overnight.
The answer lies in pulling back Federal spending to realistic, sustainable levels. The smart way to accomplish this is to use a scalpel, rather than a meat cleaver.
Nobody is holding the economy hostage. In case you hadn't noticed, the world is still spinning and the sun will still come up tomorrow. It will eventually come up on Tuesday.
Are the preceding two paragraphs my opinions presented as if they were facts. No, they are demonstrated fact based upon verifiable evidence interpreted with a bias toward fiscal responsibility.
As is usually the case in disputes such as this, neither side of the argument is in the right. We can't and shouldn't keep spending at present rates but we don't have to balance the budget overnight.
The answer lies in pulling back Federal spending to realistic, sustainable levels. The smart way to accomplish this is to use a scalpel, rather than a meat cleaver.
Nobody is holding the economy hostage. In case you hadn't noticed, the world is still spinning and the sun will still come up tomorrow. It will eventually come up on Tuesday.
No comments:
Post a Comment