Friday, September 09, 2011

US Senate Quietly Approves $500 Billion Increase In Borrowing Authority

In a behind the scenes move yesterday the U.S. Senate cleared the way for the U.S. to increase its borrowing authority by another $500 billion to $15.19 trillion. The move was designed to support the current level of federal government borrowing through late January or early February.

Senate Democrats in a mostly partisan 52-45 vote blocked Republican efforts to slow down the process leading to the $500 billion debt-ceiling increase.The only Democrat to vote with the Republicans in an effort to stop this was Sen. Ben Nelson (D-NE)who's facing re-election next year.

Apparently the deal stems from a complicated procedure worked out as part of the so-called debt ceiling bill that involves both the House and Senate voting on a resolution of disapproval against the increase. President Barack Obama would then have to veto the resolution and Congress would have to try and override that veto.

Since the Democrats control the Senate, this nonsense was kabuki theater from the beginning and was always designed to result in increasing the debt ceiling.Senator Mitch McConnell, the GOP Senate minority leader crafted this proposal as part of the deal he offered President Obama.

The Democrats,of course simply voted as a bloc to bypass all this, so the increase is now on a fast track.

The next increase is set for the first quarter 2012, and it's supposedly dependent on the bi-partisan committee of 12 Congress members to agree on a proposal that cuts at least $1.2 trillion from the federal deficit over the next ten years.

Given that the committee consists mostly of Republicans who are fiscal hawks but non-Tea Party members and Left bent Democrats who are noted for their love of government spending, expect more smoke and mirrors and very little in the way of real cuts.

These people live in a bubble.It's gotten to the point where they're making their own reality.

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1 comment:

B.Poster said...

Eventually the borrowing will stop. At some point, no one will be buying US debt. At that time, the world markets will force the type of spending cuts that the "tea party" recognizes we need in order to stay competitive and to grow our economy.

We really have two options. We can wait until we are forced by the world to make the necessary adjustments or we can do it ourselves. If we do it ourselves, it will be allot less severe than if the likes of China, Russia, and the world force us to do it. Also, China, Russia, and others do not give a whit about growing our economy. They would simply sieze whatever assets necessary to compensate them for what they are owed and to punish us for percieved actions against them.

In order to grwo our economy, we need to cut government spending and to get the government off of the backs of the private sector. Unfortunately the current government officials are doing the exact opposite of what needs to be done.