RINO GOP Warn Risks Of Pushing Debt Ceiling Debate Too Far

You cant believe everything Washington say. Democrats wants to debt ceiling raise, but will punt with spending cut. The GOP establishment doesn't want to lose their power and they are dancing with the issue. The Tea Party Conservatives want a shut down. The myth of economical disaster if we don't raise the debt ceiling suggests it is the end of the world. It is a myth and a lie. The revenues we take in as tax is sufficient to pay the debt obligations the government owes. This is the only weapon Conservative have to curb spending. We don't need a scalpel to cut the spending; we need a machete. The market is resilient and will adapt to the change. We have been delaying this for a long time. We need to fix it now or it will be too late down the road.

(Huffingtonpost) All of this is supported by a poll from the Tea Party group FreedomWorks, which found that 69 percent of all voters oppose raising the debt ceiling.

While there is disagreement between Democrats and Republicans over when a default would occur if the government hit the debt ceiling, there is broad bipartisan agreement that such a scenario is undesirable and would likely have dire consequences for the economy and the nation.

So the task for House Speaker John Boehner (R-Ohio) and Senate Minority Leader Mitch McConnell (R-Ky.) will be to extract significant concessions from President Obama and Democrats in Congress that will not be rejected as a fig leaf by Tea Party activists. Judging from the Tea Party’s scathing reaction to the deal struck in the most recent fight over this year’s budget, that will be a difficult task.

There are three main components to any potential deal that Boehner and McConnell must address.

One is what kind of structural changes to spending can be enacted, such as spending caps for each year's budget. A second is how deeply spending will be cut in the budget for fiscal year 2012, which starts in October. And the third is how high the debt ceiling will be increased from its current $14.3 trillion level, and whether that will last beyond the 2012 election or not.

They must also deal with what are essentially two different Congressional Republican camps.

Many GOP lawmakers are in the conventional wisdom crowd, which says that the debt ceiling has to be raised no matter what. This subset wants to avoid scaring the markets, but they also think the united GOP bloc has substantial leverage and can extract significant spending cut concessions from Democrats.

The second Republican camp is the more hard line conservative group, which appears willing to press their case to the political and economic limit. They will not vote for a debt ceiling increase unless they receive significant concessions.

For Democratic leaders, the narrative is relatively straightforward: The ceiling should be raised promptly, and some limited spending cuts would be appropriate.

U.S. Debt Tops $14.3 Trillion for First Time

The proposed $100 billion in cuts dwindled down to $38 billion after the members of Congress didn't have the "balls" to stand up for what was right. It is power over common sense. The $38 billion in spending cuts just covered the $34.54 billion in interest on the debt. We have a multi-trillion dollar budget. What are we spending on that can't be cut? America is on the verge of bankruptcy if we keep continuing to raise the debt ceiling.

(CNSNews.com) - The national debt has passed another historical milestone, topping $14.3 trillion for the first time ever, according to data released by the U.S. Treasury late Monday afternoon.

When the Treasury opened for business on Friday, April 15, according to the Treasury’s Bureau of the Public Debt, the national debt stood at $14.27 trillion ($14,270,792,119,184.89). By the close of business Friday, the debt had climbed to $14.31 trillion ($14,305,336,580,992.11), an increase of $34.54 billion ($34,544,461,807.22).

Friday’s $34.54-billion jump in the national debt almost equaled the $38.5 billion the Republican House leadership said would be cut from spending for the remainder of this fiscal year by the continuing resolution that the Congress passed on Thursday and President Obama signed Friday.

The federal government is now perilously close to hitting its legal limit on debt.

GOP TEA PARTY WILL FILIBUSTER NATIONAL DEBT CEILING

Raising the ceiling debt will not curb the governments thrist for spending. CUT SPENDING! Debunking a popular myth, not raising the debt ceiling will stop any further spending by the government. The obligation to the interest on our debt will still be paid by the revenues collected by taxes. In fact, the high gas prices is a nice source of tax revenues to the teasury. We need to get serious with our spending before it is too late. By putting it off, we will continue to have the same discussion.

(Politico) The Senate’s Tea Party Caucus will face a tough decision when it comes time to vote to raise the national debt limit: Fall in line behind Republican leadership or go rogue.

The founding members of the new caucus – freshman Sens. Mike Lee (R-Utah) and Rand Paul (R-Ky.) and second-term Sen. Jim DeMint (R-S.C.) – are each considering whether to mount a filibuster to block an increase of the $14.3 trillion national debt ceiling.

But Senate Minority Leader Mitch McConnell (R-Ky.) and his leadership team are quietly voicing concerns about a filibuster, saying their preferred strategy is to force Democrats to find 51 votes among themselves, so they can be solely responsible for raising the national borrowing limit. Since 60 votes would be needed to overcome a filibuster, at least seven Republicans would have to ultimately back a debt limit hike if the party didn’t want to take the blame for forcing a default on the nation’s creditors – which would badly muddy the political message.

The vote, which carries both tangible and political consequences, will be a test of how far the fiercely conservative tea party senators are willing to take their purist ideology.

If We Reach the Debt Ceiling and Dont Extend, the Government has Enough Money to Cover What We Owe

The rhetoric by Obama and Congress that we must extend the debt ceiling is completely bogus. Since the media enjoys interchanging debt ceiling and default without scrutiny, there is a big difference between the two terms. This confusion is making many Americans antsy. The main thing is that when we reach the debt ceiling, in the next couple weeks, life will continue without the dramatic "the sky is falling." The only changes that we will see is that Congress will not be able to create more debt, and public employees may see a delay in their paychecks. But the more important to note, USA will be able to pay the interest on our debt obligations. Also, the USA will not default. Don't believe the hype from the media and from Washington.

(The New American) At this moment the national debt, according to the U.S. National Debt Clock, is at $14.094 trillion and increasing by $4 billion every day. With the current ceiling on the U.S. National Debt at $14.294 trillion, there are just 49 days left until U.S. government spending hits the ceiling. Expect the noisy chorus of misinformed warnings about the consequences of such an action to rise as well.

The new Speaker of the House, John Boehner, explained on Fox News that the Republicans would push for spending cuts regardless of the imminent coming of the debt ceiling, and he was then pilloried by a Fox News writer. Boehner said:

If the president is going to ask us to increase the debt limit, then he’s going to have to be willing to cut up the credit cards. I think our team has been listening to the American people. They want us to reduce spending, and there is no limit to the amount of spending that we’re willing to cut.

Just because the bank has pulled the credit cards from the government (to expand on Boehner’s analogy) doesn’t mean the government won’t have the money to continue making the minimum payments, as noted by newly elected Senator Pat Toomey (R-Pa.) during an interview with Neil Cavuto:

The debt service, [the] interest on our debt, is about 6 percent of everything the federal government has to pay. So we would be taking in enough revenue to cover more than 10 times all the interest we owe. There is no reason we would have to default on our interest obligations….

Now, there are vendors who would have to wait to be paid. There are probably employees of the federal government who would have to wait to get paid. This [would result in] lots of dislocation. I am not suggesting that this is a desirable path, but I am suggesting that we have to get serious about getting our budget under control.