1/03/2013

Taking Up the Debt Ceiling War

Via-Front Page Magazine

By Arnold Ahlert

The tax battle is over. Democrats, President Obama and their media cheerleaders succeeded in getting a nervous and divided Republican Party to acquiesce to a bitter bargain. They allowed taxes to rise, while getting almost nothing in return in terms of spending cuts, other than vague promises to be fulfilled sometime in the future. Given the tenor of the times — with entitlement mentality run amok, our spendthrift president’s reelection in November, and the certainty that anything short of capitulation would have been framed by the media as a Republican-created debacle — perhaps it was the only reasonable course of action Republicans could take right now. In the upcoming and far more serious battle over the debt ceiling, Republicans must unify for the simplest of reasons: either they extract serious spending cuts from Democrats and the Obama administration in exchange for raising the debt ceiling — or the nation is headed for fiscal collapse.

Republicans desperately need to educate Americans about our current trajectory. In the last four years, the national debt has increased by more than $5 trillion, including $2.1 trillion of additional debt accumulated since August 2011, when the debt ceiling was raised from $14.3 trillion to $16.4 trillion. Thus, a mere seventeen months later, America technically went bankrupt again on New Year’s Eve. This means that until further credit is authorized by the House in the form of raising the debt ceiling – again – Treasury Secretary Tim Geithner will have to move money around in federal accounts, a process he claims will buy us about two more months before technical bankruptcy becomes genuine bankruptcy.

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