Community Blogger: K. RealTo Raise The Debt Ceiling Or Not To Raise The Debt Ceiling. That Is the Question.
Just wanted to give my perspective on this mess our nation is facing. I call it a mess because as with President Obama I too believe that this is a crisis, a crisis of mans own making. Man being the Republican Party under President George W. Bush and the Democratic Party under President Obama.
Ah, but there is a major difference between the two. President Bush took a 4 trillion dollar surplus as stated by some, or a 480 billion dollar surplus depending on whom you believe, left to him by President Bill Clinton.
With that surplus, he spent it on wars, two of them, veterans’ programs, medical prescription programs, unprecedented tax cuts for the wealthiest Americans, the middle class, low income and poor Americans, tax breaks and subsidies for Big-Oil Companies, and Major Corporations etc…
The problem: although it appeared all of America benefited from this unprecedented spending, the fact is that George W. Bush left the Nation 8.5 trillion dollars in national debt and 8.5 billion dollars in annual budget deficit shortfall for year 2008. The Nation’s economy was on the verge of collapse and the free world economy too was on the verge of collapse all due to President Bush’s unprecedented spending and deregulation of Wall Street, the Mortgage Industry, and the Banking Industry.
In steps, President Obama and the Democratic Party with a Nation in recession and headed toward depression. The President called for 970 billion dollars in stimulus money “to save the country” and the free world. The Republicans blocked 190 billion of that request allowing only 780 billion dollars that the President requested to be approved. In spite of Republicans “Just Say No" game plan the President’s plan worked and the Nation did not go into another depression.
Everything I’ve discussed you probably already knew. I just wanted to add some perspective. So the crucial question is "Should America raise the debt ceiling?" Yes! Absolutely.
In the past 50 years, America has raised the debt ceiling 70 times and never before with any drama or any theatrics. Always on a clean bill with no attachments, no riders, no pork-barrel projects. Simply, a clean bill to increase the debt ceiling to handle the Nations new growth. President Reagan did it, count em’ up 17 times while President George W. Bush did it 7 times with no drama, no theatrics. So, why all the drama and the theatrics now?
The Republicans who are making this far more difficult than it should ever be want you to believe, rather should I more accurately say want the “Tea Party Folks,” the bigots and racist to believe they are doing it to ensure President Obama is a one term President.
But I say to you that is what they want all of us to believe. The truth is identifying who stands to “greatly prosper” if this “great” Nation defaults on its debts come August 2, 2011. I have. Here it is.
China the biggest holder of U.S. debt with Japan a close second. Who else? Billionaires and Millionaires, Middle Eastern Nations, the (UAE) United Arab Emirates and other nations.
All of these entities and a few others buy America’s debt and will continue to, however at a “higher” interest rate for themselves. These countries that loan America money and the billionaires and millionaires who use “their” money to invest in American buy bonds and treasuries. This makes their investments not only "secure" but more "lucrative" as well. And for causing (orchestrating) this to happen, the Republicans will receive more and more foreign money in their campaign coffers and more and more foreign money for their hate Obama campaign ads. Once again “greed” continues to control the day.
Those of you out there who believe none of this matters, you won’t be singing that tune a month from now. Believe me, if the debt ceiling is not increased by midnight August 2nd we will all feel it. Some much worse than others.
The Republicans say that we are paying 800 billion dollars a year to China alone, this at less than a 1% interest rate. So simple math concludes if we default on our debt and our interest rate goes to 2% or higher, we automatically start paying them 1600 billion dollars or 1.6 trillion dollars in interest per year.
Add all of our other creditors to the mix and the U.S. Government will be paying a third or more of its annual expenditure in interest alone. What do you think will happen to Social Security, Medicare, Medicaid, VA disability, Military retirement, Government employee retirement, Social Services, Education, Research and Development etc?
Presently, our government lends money to American banks and corporations at 1% or less interest. They in turn charge the American people 10%, 12%, 14%, 17% as high as 27% interest to borrow that money. If the government has to pay 2% or higher interest to borrow money and they in turn charge the banks and corporations 2% or higher to borrow money then how much then are the banks and corporations how much are they going charge the American people to borrow money from them? Do the math.
In a recent presidential address, President Obama made the following statement; "The American people may have voted for divided government, but they didn't vote for a dysfunctional government. So I'm asking you all to make your voice heard. If you want a balanced approach to reducing the deficit, let your member of Congress know. If you believe we can solve this problem through compromise, send that message."
Call your Congressional Representatives, both Senators and Congressmen/women. Let them know we want a balanced approach for reducing the nation’s deficit, to cut discretionary spending and increase revenue income and raise the debt ceiling by extending it through the year 2012.
Do it now. No time to procrastinate.
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