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Thursday, December 10, 2009

Democrats To Raise Debt Ceiling By $1.8 Trillion

To allow themselves and Barack Obama to continue to borrow and spend like drunked sailors, Democratic politicians are preparing to raise the debt ceiling (the allowable amount of debt the U.S. may get into) by $1.8 trillion, which is nearly twice the amount of what was projected in last spring’s budget resolution for 2010.

Via The Politico:

House Appropriations Committee Chairman Dave Obey, who is pursuing job-related measures he would also like to add, insisted that the debt issue is a “leadership call” alone. But the Wisconsin Democrat showed no sign of opposition to the strategy outlined by Hoyer.

“It is December. We don’t really have a choice,” Obey told POLITICO. “The bill’s already been run up; the credit card has already been used. When you get the bill in the mail you need to pay it.”

Though Treasury can buy itself time by moving assets around, it is already coming close to the current debt ceiling of $12.1 trillion. Last spring, the Democratic-backed budget proposed to raise this to about $13 trillion, but given the current pace of borrowing, no one now expects that will be sufficient to get through 2010.

In fact, fiscal year 2009 ended Sept. 30 with a $1.4 trillion deficit, which demanded higher-than-expected Treasury borrowing. Most of that was due to the downturn in the economy and spending commitments in place before Barack Obama took office. And as much as Republicans point to the president’s economic recovery bill last February as the culprit, only a small share of that $787 billion package was spent by Sept. 30.

2010 elections are important because as long as Democrats continue to control the House and the Senate as well as the White House, they are going to continue to spend, spend, spend and borrow to allow themselves to spend.

The only way to stop that is to take enough House and Senate seats away from them so their agenda of "spend and borrow" cannot be jammed through without anybody to stop them from bankrupting this country.