Obama: 'Raising the Debt Ceiling...Does Not Increase Our Debt,' Though It Has 'Over 100 Times'

[Hilarious Clinton 452]

Raising the debt ceiling doesn't increase the nation's debt, Pres. Obama declared in a speech today.

In a speech at the Business Roundtable headquarters in Washington, D.C., Obama dismissed concerns about raising the debt ceiling by noting that it'd been done so many times in the past:

"Now, this debt ceiling -- I just want to remind people in case you haven't been keeping up -- raising the debt ceiling, which has been done over a hundred times, does not increase our debt; it does not somehow promote profligacy. All it does is it says you got to pay the bills that you've already racked up, Congress. It's a basic function of making sure that the full faith and credit of the United States is preserved."

Obama went on to suggest that "the average person" mistakenly thinks that raising the debt ceiling means the U.S. is racking up more debt:

"It's always a tough vote because the average person thinks raising the debt ceiling must mean that we're running up our debt, so people don't like to vote on it, and, typically, there's some gamesmanship in terms of making the President's party shoulder the burden of raising the -- taking the vote."

But, isn't the fact that the U.S. has hit its debt ceiling "over a hundred times" - and, thus, has had to keep raising it - proof that raising the limit does, in fact, lead to increased debt?

- See more at: http://cnsnews.com/mrctv-blog/craig-bannister/obama-raising-debt-ceilingdoes-not-increase-our-debt-though-it-has-over#sthash.8hwmScPr.dpuf

[Mr. Big Dog 10,747]

But, isn't the fact that the U.S. has hit its debt ceiling "over a hundred times" - and, thus, has had to keep raising it - proof that raising the limit does, in fact, lead to increased debt?

No, it isn't proof of that at all. To suggest that it is is really stupid. It's the tax and spending bills Congress passes - especially those where tax bills put tax revenues on lower trajectories than expenditures in spending bills - that lead to increased debt. You know, when you spend more than you generate. That's where deficits come from and that is how debt is racked up. Raising the debt ceiling adds not even a penny to the national debt. Never has, never will. Any fifth grader can easily figure that our but no conservative will ever get it.

Edited September 19, 2013 by Mr. Big Dog

[Pooky 3,840]

No, it isn't proof of that at all. To suggest that it is is really stupid. It's the tax and spending bills Congress passes - especially those where tax bills put tax revenues on lower trajectories than expenditures in spending bills - that lead to increased debt. You know, when you spend more than you generate. That's where deficits come from and that is how debt is racked up. Raising the debt ceiling adds not even a penny to the national debt. Never has, never will. Any fifth grader can easily figure that our but no conservative will ever get it.

Neither will any of the Democrats elected to Congress.

[Karee 4,191]

No, it isn't proof of that at all. To suggest that it is is really stupid. It's the tax and spending bills Congress passes - especially those where tax bills put tax revenues on lower trajectories than expenditures in spending bills - that lead to increased debt. You know, when you spend more than you generate. That's where deficits come from and that is how debt is racked up. Raising the debt ceiling adds not even a penny to the national debt. Never has, never will. Any fifth grader can easily figure that our but no conservative will ever get it.

I think I get what you're saying. It's like raising the limit on your credit card, but if you don't charge more on that card, then your actual credit card debt never goes up.

If the govt. isn't planning on putting the country further into debt, then why raise the debt ceiling? Seems pretty obvious that the only reason to raise the debt ceiling is so that they can rack up more debt.

[Mr. Big Dog 10,747]

I think I get what you're saying. It's like raising the limit on your credit card, but if you don't charge more on that card, then your actual credit card debt never goes up.

If the govt. isn't planning on putting the country further into debt, then why raise the debt ceiling? Seems pretty obvious that the only reason to raise the debt ceiling is so that they can rack up more debt.

Actually, the additional debt is already racked up. The only way to fix that is to bring revenues in line with expenditures. Not raising the debt ceiling does nothing but prevent the already racked up bills from being paid. That will cause more debt, not less.

[Karee 4,191]

Actually, the additional debt is already racked up. The only way to fix that is to bring revenues in line with expenditures. Not raising the debt ceiling does nothing but prevent the already racked up bills from being paid. That will cause more debt, not less.

That implies that they need to raise the debt ceiling just to pay current obligations, rather than fund new expenditures. Raising the debt ceiling WILL increase the debt. It may not increase it as much as if they don't raise it, but it will still increase the debt.

I don't see how anyone can say it's good thing. It's probably the lesser of two evils. Key word being "evil."

[Mr. Big Dog 10,747]

That implies that they need to raise the debt ceiling just to pay current obligations, rather than fund new expenditures.

That would be correct.

Raising the debt ceiling WILL increase the debt.

No, it won't. Raising the debt ceiling adds $0.00 to the debt.

It may not increase it as much as if they don't raise it, but it will still increase the debt.

Raising the debt ceiling adds $0.00 to the debt. Not raising the debt ceiling increases the cost of funding the existing and future debt which would pile more debt on top of the existing debt. And it would do so needlessly.

Would you deliberately delay paying your credit card bill to deliberately trigger a higher interest rate on your debt without there being any actual need to do so? Of course not. It would be stupid to do that as all it would accomplish is you paying more to fund the debt you already have. But that is precisely what the Tea Party Loons want to do. They want to deliberately drive up the cost of borrowing for the US making the debt service on the existing national debt needlessly more expensive. They want to add to the national debt without the nation getting any benefit whatsoever from that added debt. They're stupid. There's no other way to say it. The Tea Party loons are insane.

[Mr. Big Dog 10,747]

Neither will any of the Democrats elected to Congress.

Democrats get it. A lot of Republicans get it. Just those Tea Party Loons don't. They're not quite bright enough.

[Pooky 3,840]

Democrats get it. A lot of Republicans get it.

No, they don't. None of them do.

[Mr. Big Dog 10,747]

No, they don't. None of them do.

Yeah they do. They know quite well that raising the debt ceiling adds $0.00 to the national debt.

[Pooky 3,840]

Yeah they do. They know quite well that raising the debt ceiling adds $0.00 to the national debt.

But they're all more than willing, once the debt ceiling is raised, to use that as an excuse to increase spending (again).

[Karee 4,191]

So hypothetical. If the debt ceiling is raised from 16 trillion to 17 trillion because if they didn't raise it, the debt would increase to 18 trillion. Is the debt still not 1 trillion more at 17 trillion?

Tea party loons aside, it still seems like a bad thing.

To use your credit card analogy, wouldn't it be better to stop using your credit card? All these projections of revenue increasing to cover the debt later, seem a little far-fetched to me. It's kinda like hoping you'll get a raise next year to cover your current bad spending habits.

[Karee 4,191]

But they're all more than willing, once the debt ceiling is raised, to use that as an excuse to increase spending (again).

Yeah that's the point. To assume that wont happen, is burying your head in the sand. Of course they will.

Like I was saying, there's really no positive side to it. Both options are bad. One is just worse than the other.

[Mr. Big Dog 10,747]

But they're all more than willing, once the debt ceiling is raised, to use that as an excuse to increase spending (again).

See, that's where the focus should be. When it comes to deciding what revenues are generated and what expenditures are authorized. That's where the balancing needs to occur if one wants to attack the national debt. The debt ceiling is the wrong place to do it because all that would ever accomplish is make matters - i.e. the debt - worse. Not raising the debt ceiling is really the same as shoveling taxpayer money right out the window. That's what the Tea Party wants to do with your tax dollars - throw it out the window for nothing in return at all.

[Mr. Big Dog 10,747]

So hypothetical. If the debt ceiling is raised from 16 trillion to 17 trillion because if they didn't raise it, the debt would increase to 18 trillion. Is the debt still not 1 trillion more at 17 trillion?

Yes, it goes to $17 trillion but not because the debt ceiling was raised but because tax and spending bills were passed that weren't balancing receipts and expenditures. Not raising the debt ceiling adds to the deficit and debt. Raising it is deficit and debt neutral.

Tea party loons aside, it still seems like a bad thing.

Then the focus needs to be put on balancing budgets. Pay-as-you-go legislation and all. We had that. Until the Republicans took over earlier this century.

To use your credit card analogy, wouldn't it be better to stop using your credit card? All these projections of revenue increasing to cover the debt later, seem a little far-fetched to me. It's kinda like hoping you'll get a raise next year to cover your current bad spending habits.

Sure. That would mean that revenues need to be raised and expenditures need to be lowered. Not using the credit card cannot happen any other way. The administration has proposed and fought for that but the same forces that want to deliberately and needlessly force our cost of borrowing up refuse to quit using the credit card. That's why they're called loons. They are insane. Plain and simple.