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Technically, There Is No Real Debt Limit Right Now

From the Daily Caller:

There’s no actual debt ceiling right now

By Alex Pappas | October 17, 2013

There’s no actual debt ceiling right now. The fiscal deal passed by Congress on Wednesday evening to re-open the government and get around the $16.4 trillion limit on borrowing doesn’t actually increase the debt limit. It just temporarily suspends enforcement of it.

That means Americans have no idea how much debt their government is going to rack up between now and Feb. 7, when the limits are supposed to go back into place and will have to be raised.

There is no dollar amount set for how much debt the government can accumulate between now and then. The suspension strategy was employed first earlier this year during previous fiscal battles in Congress.

Other reports have said Obama wanted — and got — some kind of ‘wiggle room’ within the debt limit. Which he also was given in the last debt limit deal. Which could explain how the administration has been able to go past the actual debt ceiling since May.

And maybe this is how it’s done, by not fixing a hard and fast number to the debt limit. And the $986 billion figure in the bill was just a suggestion from Congress.

Such tactics infuriate anti-government waste groups.

“Suspending the debt ceiling without a dollar amount is further proof that Congress is taking a major step backward in fiscal responsibility,” David Williams, the president of the Taxpayers Protection Alliance, told TheDC on Thursday. “A real dollar figure is a constant reminder to taxpayers and Congress that the country is broke. This was done to hide the real debt from taxpayers.”

To critics, lawmakers have gotten away with allowing the country to rack up more debt and avoid the threat of default without actually voting for debt limit increase.

The conservative Heritage Foundation has criticized the practice as a “smokescreen.”

“Suspending the debt is less transparent to the American people. It allows Members of Congress to avoid debate on the specific dollar amount increase in the debt limit, making their vote politically much easier to cast,” the organization wrote in October. “A calendar date is not nearly as scary to constituents as a figure in the trillions of dollars.”

Which makes sense. After all, who in Congress doesn’t really want more money to play with? To buy votes with?

They just don’t want to have to vote for it.

This article was posted by Steve on Friday, October 18th, 2013. Comments are currently closed.

3 Responses to “Technically, There Is No Real Debt Limit Right Now”

  1. Petronius says:

    The debt ceiling is really a lending ceiling. The amount that the government can spend depends entirely on how much the world is willing to lend us. At some point they will stop lending.

    When they stop lending we will stop borrowing. And the lenders are already stopping. China and other big buyers of US debt are bugging out.

    When everybody stops lending, the government must default; a US default becomes inevitable when nobody will buy new government debt.

    As the attractiveness of Treasuries has diminished for investors, the Fed has become the biggest buyer (by far). The Fed is monetizing the debt by money printing.

    Money printing is actually a form of default. Inflation is a form of debt repudiation. It means paying off creditors with worthless paper money. That’s why investors are bugging out.

    As a result, the increases in the debt ceiling (lending ceiling) translate into inflation and a decline in the US dollar.

    As the US dollar declines in value, real money (gold, silver, strong foreign currencies) stands to benefit.

    As the decline in the US dollar deepens, China and other foreigners are weaning themselves off the dollar. They are executing trade agreements in their own currencies. The US dollar is gradually losing its status as the world’s reserve currency.

    Sorry to break the news to you America, but we will have to learn again to live within our means.

    The American standard of living is falling and it is going to fall a lot more. A lot more.

    Goods are going to become very expensive. Prices of everyday stuff will be beyond the means of many Americans. We will not be a consumption and throw-away society anymore. We will be a make-it-do, wear-it-out, use-it-up, and do-without society. You will have to learn to repair your old stuff rather than buy new stuff.

    In Nerobama’s transformed America, everybody will become a handyman and a scavenger.

    People in America who currently do not work will have to go to work. Including the so-called disabled. Including old codgers like me. Because they will no longer be able to depend on their pensions or their Social Security or government EBT cards. They will need jobs––real jobs, not government jobs.

    But where will the jobs come from when we have saddled ourselves with job-killing taxes, myriad anti-business government programs, and stifling regulations?

    If the American idiocracy wakes up, they will realize that it is necessary to kill off government in order to restore the economy, prosperity, and freedom.

    But will the media allow the idiocracy to wake up? Of course not! The media is the Democrat Party base. Therefore, we must expect the media to join Nerobama in blaming capitalism and economic freedom for our ills. They will double-down on big government. And so the idiocracy will demand that we go all-in on government.

    As that scenario unfolds, life in America will become unlivable for most of us. All of us, that is, who don’t want to live in serfdom.

    In that case America will be finished beyond redemption. It will be time to leave America for another country. Time for a last minute attempt to find freedom in an unfree world.

    You will need to leave before the government builds walls to keep people in.

    And will the last American to leave please turn out the lights?

    • BannedbytheTaliban says:

      It only takes 1% of the population to wage an effective revolution. We continue to believe that will be us, but we fail to see the media and democrat elite are also 1% and are winning.

    • Noyzmakr says:

      Excellent point BannedbytheTaliban! I hadn’t looked at it that way, but you’re exactly right. They’re winning the revolution and most of us just thought it was a culture war.

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