Why is this debt ceiling raise special?

[HappyTexan]

Originally Posted by brattpowered

Maybe I haven't been keeping up enough, but why is the debt ceiling raise under Obama causing such controversy? It happened under Reagan 18 times and our debt was high back then too (which is why there was a ceiling).

It's not but it's a great grandstanding event for both parties with 2012 elections coming up.

They really have no choice but to raise the debt ceiling.
They did it in May so they could get their act together and do a real budget by now which they didn't. We still don't have a 2010 budget.

So as 8/2 draws near and still nothing is settled, we'll just raise it again.
Nothing like sticking your head in the sand and denying that "stuff has to get done".

[Quick Enough]

Originally Posted by robbobobbo

Yes, it is odd that politicians weren't playing a game of chicken with our economy every time in the past when it was raised, but you are not correct when you say we have a debt ceiling because of the U.S. having high debt.

It used to be that Congress had to vote on and approve legislation every single time the government wanted to borrow money. In WWI, this became cumbersome because of war expenditures, so in 1917 the debt ceiling was created. This allowed borrowing to go up to the limit without having to vote on every debt issuance.

Also, in 1995 and 1996, Republicans forced two government shutdowns over their refusal to raise the debt ceiling. Guess what? A Democrat was president, surprise surprise. It hurt the markets at the time. Republicans are playing the same game now, because they hope a worsened economy will "make him (Obama) fail" just as they wished for in the beginning of his term.

Not every time, but it is not new either.
"A History of Debt-Ceiling Fights

The problem is, fights over the debt ceiling dating back to the Reagan Administration have not resulted in follow-through on promised spending cuts from the early ‘80s going forward."[LEFT]
Read more: A History of Debt-Ceiling Fights - FoxBusiness.com
[/LEFT]

A History of Debt-Ceiling Fights - FoxBusiness.com

I have a different perspective. The repubs did their job and passed budgets. the president, Clinton, refused to sign it. He was responsible for the shutdown.

[Quick Enough]

Originally Posted by malamute

It shouldn't have happened under Reagan 18 times and it shouldn't happen now.

It's way past time to cut spending, eliminate many of the wasteful and duplicate programs.

"The U.S. debt ceiling has been raised 11 times since 1996[LEFT]
[/LEFT]
That’s largely because the Congress tends to raise the debt ceiling at the eleventh hour. And that’s the overarching problem.'[LEFT]
Read more: A History of Debt-Ceiling Fights - FoxBusiness.com
[/LEFT]

[Marv101]

It's pure hypocrisy plain & simple, since Obama voted against raising it in 2006.

[Mircea]

Originally Posted by brattpowered

Maybe I haven't been keeping up enough, but why is the debt ceiling raise under Obama causing such controversy? It happened under Reagan 18 times and our debt was high back then too (which is why there was a ceiling).

Maybe you haven't been keeping up?

I think it is more than obvious that you have not.

To answer your question, yes the debt-ceiling has been raised many times in the past, but there are two very real and very important differences now.

The first difference is that none of the previous times resulted in your credit being down-graded.

The second differences is that at no time previously did raising the debt ceiling result in the National Debt exceeding the GDP.

Unfortunatley for you, and it doesn't matter if you raise the debt-ceiling or not, you have guaranteed that three things will definitely happen:

1) you have guaranteed your credit rating will be down-graded; and

2) you have guaranteed yourselves a major recession; and

3) you have guaranteed yourselves major Real Inflation which will start in about 11 years from now.

You have inflation now? No, you are experiencing Cost Inflation related to specific commodities because of Supply & Demand issues related to those certain specific commodities.

If a purple and green cloud flies over the US and kills 90% of the chickens, that will create a shortage of the Supply of Chickens and the price of chickens will rise, and so will any products made with or using chickens.

That is Cost Inflation. Does your car insurance jump 45%? No, because that is Cost Inflation and not Real Inflation.

Depending on how much money your government continues to pump into the economy, it will take a quite a few years to wend its way through the system, and when it finally does, you're going to have Real Inflation on the order of about 35% to 45% (worse than post-WW I but not as bad as the Civil War).

When you have Real Inflation, the price of both chickens and your car insurance will jump 45%. And the price of Bic Ball-Point Pens will go up 45% as well. As so will your internet, cable and cell service, and printer ink, and guitar picks, coffee mugs, all food, all cosmetics and everything you can see and touch.

[LaTrang]

Originally Posted by brattpowered

Maybe I haven't been keeping up enough, but why is the debt ceiling raise under Obama causing such controversy? It happened under Reagan 18 times and our debt was high back then too (which is why there was a ceiling).

Raising this debt ceiling on Obama is like raising the number of drinks a bar is willing to sell to an already-drunk customer. It is EXACTLY the WRONG thing to do.

[pghquest]

Originally Posted by brattpowered

Maybe I haven't been keeping up enough, but why is the debt ceiling raise under Obama causing such controversy? It happened under Reagan 18 times and our debt was high back then too (which is why there was a ceiling).

its like people need basic elementary math explained to them.

The fact that it was raised 18 times under Reagan is meaningless, especially considering ALL 18 times, didnt total the ONE increase under Obama.

[lifelongMOgal]

Obama has already pissed away $3.5 Trillion and raising the debt ceiling will allow him another nearly $2.5Trillion more in money that we have to borrow for his Marxist follies. That is part of why it is a big deal.

[Fiddlehead]

It is a way for the conservative branch to bluster their way into power again. The fact that most Americans want a moderate approach does not matter to them. I will never vote for a single one of them ever. The same type thugs who threatened folks at the polls/recount in Florida in 2000, and had their party members help steal the election.

The far right has become like a branch of the mafia. Seriously.