A View From Middle England - Conservative with a slight libertarian touch - For Christian charity and traditional belief - Free Enterprise NOT Covert Corporatism

Monday, July 25, 2011

Hillary Clinton thinks a debt deal is a done deal

Hillary Clinton may think raising the borrowing limit on US federal spending is a good thing, but where does she actually think the limit should be. Twice what it is now? Six times? Twenty times, maybe? The US government writes 80 million cheques a month (or is it a week?) as if this is normal practice. It's not taxpayers' money, it's not bank money. It's computer generated funny money. The system is not changing. Wars are still costing billions. Social security is costing billions. Federal spending is just a way to keep communities sweet. I remember Newt Gingrinch piling in the cash to enable Marietta folk to keep living the life of Reilly.

The BBC says on its website -

"The federal government is running a large budget deficit - equal to $1.3tn, or more than $4,000 per person, during the 12 months to June this year. The borrowing is required to meet the government's agreed spending plans and because its ability to raise taxes is limited under current laws. But the government must also comply with a law that limits the total amount of debt it can take on - the debt ceiling."

So the easy answer is to raise the debt ceiling. But how far. Just above the level of the Empire State Building? Or to the thinner levels of the atmosphere? I can't see any change on the horizon. The American economy is driving at 55mph to oblivion. They might save a bit of gas on the way, but the road is as straight as a Roman might know it. The only hope is that some bright sparks get to change things on the way.

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