Time for fiscal responsibility
Ross Schulz, Staff Writer
The proclaimed deadline before economic Armageddon is looming just a couple of weeks away, and it appears there’s at least a slight chance Congress will decide not to raise the debt limit which could lead to the U.S. defaulting on some of its debt. But defaulting as a result of inaction is not even a sure bet, as other experts say there will be plenty of money to pay creditors without raising the debt ceiling.
Many Republicans have said they won’t budge on their promise to halt the seemingly unending march of debt addition, even if it means trouble politically.
A stand needs to be made, since something is obviously amiss when the country’s monthly ‘ yes, monthly ‘ spending is $118 million more than revenue. An agreement may have to be reached to raise the debt limit, but it should only be done so with some serious spending cuts attached to it, to try to reverse the massive debt mountain that has been building the last few decades.
Congress might be able to avoid default this time around but, at the rate the Obama Administration ‘ and the latter years of George W. Bush’s term ‘ has spent money without much in the way of economic recovery to show for it, defaulting on debt is inevitable.
The end of the fiscal year is Sept. 30, which would make a good time to begin spending cuts.
The debt limit ‘ $14.294 trillion ‘ was reached May 16, and Treasury Secretary Timothy Geithner said he could do some legal hoop-jumping tricks to buy some time for Congress.
The debt ceiling is a cap set by Congress on the amount of debt the federal government can legally borrow. It was created to help Congress control spending, but since it has been raised 74 times since 1962, it hasn’t controlled much of anything. It has been raised 10 times since 2001.
Geithner, Obama and Federal Reserve Chairman Ben Bernake and others warn that the limit has to be raised to avoid catastrophe. We’ve listened to this small group before, and the direction of the country’s economy and financial stability hasn’t changed. Maybe it’s time to stop listening.
A wave of freshmen Congressmen and women were elected in 2010 to not continue to the same old tune, but to make a real difference and begin to turn the tide of debt facing the country.
If that means holding the line and not voting to raise the debt limit, so be it. It will show the American people that Congress is finally serious about financial responsibility.