Raising The Debt Ceiling Fails: 97-318
By Shaun Kenney | Tuesday, May 31st, 2011 | PoliticsAnyone in the least bit surprised?
Of course, Washington is patting itself on the back per usual for a job well done… and of course, this one was a no-brainer.
We’ll see what happens when the budget negotiations end and House Republican and Senate Democrat leadership tries to sell the compromise bill. Then we get into deeper water rather than the kiddie pool…
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Shaun Kenney
Shaun Kenney is the Chairman of the Fluvanna County Board of Supervisors, former Communications Director for the Republican Party of Virginia, and an active blogger since 2002. Shaun lives in Thomas Jefferson's backyard with his wife, six children, and a modest attempt at a farm in Kents Store, Virginia.
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16 Responses to "Raising The Debt Ceiling Fails: 97-318"
Shaun: You hit the nail on the head. Wall Street moguls are being assured that a debt ceiling increase is in the cards, but only after some token cuts can be used as a justification. As for those who point to “bi-partisan” cooperation, the agreeing Democrats on this iteration considered this a “free” vote without any significant consequences. In the end, this was a political vote, not a governing one.
Absolutely, Wally. Let’s see what cuts are actually proposed between the White House and Congress in the next couple weeks. If it’s mere tokenism, some serious thought has to be given to primary challengers or a third party in the U.S. House for the 2012 election.
Yes J.R., please pursue this initiative; perhaps Ms. Palin is available. Then all the ideologues can sit in a corner and trade witty comments about the constitution, and the real Congress can get on with the cuts and revenue increases required to reduce the precentage of both to about 20% without putting our economy back into recession. Perhaps even real republicans, after flirting with ideologues, will get back to pragmatic reform, and stop staging political theater so they can say they voted for it before they voted against it.
Mr. Barrett believes that Congress, regardless of ideology, will be able to accomplish a sound economic policy irrespective of the Federal Reserve’s uncontrollable dictates is quite amusing. Until CPI and inflation rates are legitimately calculated by including all aspects such as energy and food costs, we will continue underestimate the our fiat monetary strength in the world market.
Well Wally, they did so as recently as Clinton’s second term when working together they actually created a surplus and began to pay down on the national debt. This is not impossible, and in fact, can be done if blind allegiance to ideology is left at the door and reasonable representatives compromise.
Respectfully Mike, a lot of water has gone under the bridge since then. Unbelievable debt, a never-ending war, international near-defaults. We are drowning 8 feet from shore and Congress’ best proposal is a life ring with 4 feet of rope.
Yes, I certainly concur that the last decade has created very difficult situations from which to recover, and I have no illusions that recovery will come in one year. It took a decade to get into this mess; it will take another one to fully recover, if we start now, and work both sides of the equation without threatening to put the economy back into recession. That is why this charade going on right now in the House is simply window dressing.
Mike,
I suppose you think you’re being amusing and mildly witty, but I do not make the statements because I desire a recession or am blinded by ideology. I fear for the future if we don’t get this staggering debt under control. In just two years our debt has gone up $5 trillion. That’s more than the first 230 years of our national existence and you want to tell me that I’m not serious?
Your rhetoric is not helpful. Cute words won’t solve this, but realistic cuts in spending and entitlement reform certainly might help.
They are playing politics and will not get serious until the August date get here.
It was a symbolic vote and meaningless… In the end, the debt limit will be raised as there is no option.
OK, why if Ryan’s plan is such a good idea does it only kick in once I am eligible for Medicare? Why doesn’t it kick in immediately and ask those who expect me to live with it to live with it themselves?
No J.R., I am quite aware that my posts are neither amusing nor witty. That said, any politician who believes that the deficit will be reduced simply by cutting expenditures is not a serious player. In fact, cutting expenditures too much, to quickly, will put us back into recession, which is the worst thing we can do. No, we need rational and targeted cuts, increased revenue, mostly through the termination or reduction in tax credits, and entitlements and defense most definitely need to be on the table.
First threaten the existence of Medicare and Social Security, then destroy any confidence that exists in the markets.
I think they’ve locked up the senior citizen and middle class votes for the Democrats.
Did I see that Connolly was a Yes vote on the debt ceiling? Still working on that track record that nearly got himself beat in 2010…
The deficit is a problem. But Republicans seem to think it’s the ONLY problem — after not caring about it at all for eight years under a GOP president. Our most important economic problem right now is sustaining a fragile recovery. Throwing a scare into the credit markets is sort of counter productive.
So many comments announce little more than their author’s condition as trapped in the two-party paradigm. “It’s all the democrats’ fault.” “No, it’s all the republicans’ fault.” The truth is, democrats love pandering to the masses who believe they deserve wealth redistribution (theft from the producing class), and the republicans love pandering to the wealthy who believe they deserve legislated market share and endless MIC profits (theft from the producing class); both pander to Wall Street.
We are deficit-spending 12% of GDP. Is there a consensus anywhere that we cannot go on like this? Nope. After all, we’ve gotten away with it this long, right?
Here are the facts:
1. The left refuses to admit the possibility that we cannot afford the welfare state, and the right refuses to admit the possibility that we cannot afford the warfare state.
2. Wealth must first be created before it can be redistributed. Wealth creation requires productive economic activity, something neither side is actively discussing. Why? Because they really don’t understand it. Mainstream politicians still think the Fed is going to get us out of this. Boy, won’t they be surprised.
3. Productive economic activity requires energy, and lots of it.
4. The easiest ways to kill wealth-producing economic activity is with high energy prices, OR a mind-numbing and restrictive regulatory state, OR monetary / exchange rate uncertainty (PRICING), OR high taxes. How about we do all 4?
If we don’t do everything we can, right now, to reinvigorate the working productive parts of the American economy, we are doomed. Not the welfare parts, not the warfare parts, not the Wall street parts, but the actual productive parts. You know, making a useful product and bringing it to market at a competitive price. Selling it abroad to earn foreign exchange. Innovating. You guys remember that, don’t you? You learned about it in history class.
I wish to point out that Moody’s has warned that it might review the US’s AAA credit rating as early as next month if their is not progress towards cutting a deal to raise the debt limit.
Standard and Poor’s changed the outlook on US Treasuries from stable to negative about two months ago.
Seems like the credit market is not going to give Congress all the way until Aug 2nd to play brinkmanship with default.
I applaud this. It is my opinion that the government should shut down on July 5th (one day after we celebrate the birth of our nation) if a deal is not reached. This would force all the players to lay all their cards on the table and allow the voters to decide who is at fault while still allowing almost a full month for action prior to actual default. Apparently Moody’s agrees with me that investors should not allow Congress to play Russsian Roulette with a gun where all the cylinders have a live round in them.
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