Well, the Debt Ceiling debate has ended. The deadline was August 2 and that’s when the politicians finally got around to doing something. The “whimper-instead-of-bang” conclusion to the debate had few surprises: the debt ceiling was raised (yawn), the Democrats are upset that the Bush tax cuts are still in place (of course) and the Republicans caved, although the MSM is insistent that the Tea Party caucus has destroyed the country (always predictable).
Meanwhile, the ship of state continues to sink beneath the waves of red ink and the raising of the debt ceiling has just made the red tide deeper. Before raising the debt ceiling, 43 cents of every dollar the Federal Government spent was borrowed. Now what will it be? 50%?
Today, the day after the debt ceiling agreement, there is puzzlement in the media and on Capitol Hill. The stock market continued a nine-day losing streak, the DOW barely turning up $30 at the closing bell after losing $850. Didn’t they hear that the government raised the debt ceiling and all’s right with the world?
Even more puzzling, Moody’s continues to say they may still downgrade the Fed’s credit rating. Why? Didn’t Congress save us?
Actually, reality can now set in. The stock market and Moody’s weren’t threatening disaster UNLESS the debt ceiling was raised, but BECAUSE of the debt itself. In just five years, President Bush , but mostly Obama and the Democrat-controlled Congress added as much to the national debt as had accumulated over the previous 235 years( ! ).
Do you need to reread that last sentence?
The debt ceiling deal, in spite of hard-won, but insignificant Republican cuts, will add no less than 10 trillion dollars to the national debt over 10 years. That will mean the total debt will be $24 trillion dollars.
How much is that? I have no idea. I understand $24,000. 1,000 times $24,000 is $24 million. What about $24 BILLION? $24 billion is 1,000 times $24 million and 1 million times $24,000. The last year of the Clinton Administration, the annual deficit (not the same as the national debt) was less than $24 billion.
But, $24 trillion is 1,000 times $24 billion and a MILLION times $24 million. 24 million-million dollars of debt. That’s roughly $80,000 for every man, woman and child living in America today. That’s where we are going.
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