Should Congress Be Given a Limitless Credit Card? Ben Bernanke Thinks So!Submitted by d4chin on Fri, 01/18/2013 - 00:13
Just one year ago, our government faced a debt-ceiling crisis; where they did not have enough revenue to pay off their debts, so they decided to raise the debt ceiling and borrow the money it needed to pay its bills. In essence, this was equivalent to someone using a credit card to pay off its debts. In spite of this fact, here we are one year later, and our government is once again facing the same debt-ceiling situation. Once again, our government is considering raising the debt ceiling and borrowing their way out of debt yet again. This is equivalent to someone trying to dig themselves out of a whole; unfortunately, the problem only gets worse.
In spite of these fiscal realities, we have politicians and economists who believe that the American people should just hand Congress a “black” card.
Politico reported on 1/14/13, that, “President Barack Obama used the last press conference of his first term to try to grab hold of the debate over fiscal responsibility, which will define the beginning of his second.” Obama repeated his call for a long-term deficit-reduction deal but spent most of his nearly hour-long appearance in the East Room of the White House to cast Republicans as endangering the U.S. economy by threatening to not raise the debt ceiling.”
During the president’s speech he said this in regards to his Republican counter-parts, “They will not collect a ransom in exchange for not crashing the American economy,” Obama said. “The full faith and credit of the United States of America is not a bargaining chip.”
It is said to see the president resort to such elementary arguments in light of our current fiscal ailments. It’s as if he doesn’t realize that our country has a credit rating too, and we run the risk of compromising the little faith that others still have in us if we do not address our debt to income ratio issues. It’s actually simple math; we can’t keep spending more than we bring in, and then borrowing money to make up for the difference.