Tuesday, February 11, 2014

Debt ceiling hike

Congress is playing chicken with the debt ceiling, again.  It's one of those things that must pass.  Treasury cannot borrow any more money, sell any more T-bills until the debt ceiling is raised.  About one third of federal spending is financed by debt.  Unless we raise the debt ceiling we will have to cut federal spending by a third.  Which is inconceivable.  All the wrangling over "sequester" and budget has only managed to slow the rise of federal spending, the Congress critters lack the stones to actually cut anything. 
   With a must pass bill, the Congress critters all say to themselves "I will attach my pet bill to the must pass bill and it will go thru too."   Trouble is, the obvious things to tie to the debt ceiling hike are spending cuts.  But after a year of wrangling, there are no more cuts left to cut.  Or rather, the cuts that have enough votes to pass have all been made.  The rest of the spending has die hard defenders who promise to open their veins on the floor of Congress and bleed to death right on Cspan if their pet bit of pork gets cut.
   Exhibit A.  The farm bill they passed a couple of days ago.  Pure pork, but they all voted for it.  And now, they will have vote for a debt ceiling hike. 
   We need to remember in November.  And we ought to remember who voted for that farm bill, rather than who votes to hike the debt ceiling. 

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