What's another trillion when you are broke anyway?

[Sasquatch]

Obama asks Congress for $1.2 trillion increase in nation's borrowing limit

http://www.washingtonpost.com/politics/congress/obama-asks-congress-for-12-trillion-increase-in-nations-borrowing-limit/2012/01/12/gIQA7QT7tP_story.html

[MRM]

Isn't that like a person running up $20k in credit card debts, reach their limit, then ask for another $5k to be added to the limit to borrow more money?

[Jeremy Roenick]

That's the exact same thought I had MRM.

At some point, the crack addict has to go cold turkey.

[Sasquatch]

What's ANOTHER trillion?  

Congressional Budget Office reports another $1 trillion deficit

Read more: http://www.politico.com/news/stories/0112/72205.html#ixzz1l3P5mmRa

 

[Jeremy Roenick]

Don't worry Sas, the markets have "priced it in".

Run out and buy that new iPad, happy days are here again.   

[NCVol]

All I know is $trillion deficits and tax rates at 60 year lows is proof we need more tax cuts, because of the deficit and debt crisis!!! 

Jobs Creators!! Confidence Fairy!  Laffer Curve!! 

[Sasquatch]

Obama just HOPES enough people believe like you do.  

Latest Congressional Budget Outlook For 2012-2022 Released, Says Real Unemployment Rate Is 10%

Reckon the numbers below will be revised up a few times during the range it covers?  

These are the fairyland numbers. Go to the site below and scroll down for the "alternative" figures.



http://www.zerohedge.com/news/latest-congressional-budget-outlook-2012-2022-released

[MRM]

Don't worry Sas, the markets have "priced it in".

Run out and buy that new iPad, happy days are here again.   

Meanwhile, the price of gasoline continues to rise (for no apparent good reason) and the values of houses continue to decline.

[Sasquatch]

Meanwhile, the price of gasoline continues to rise (for no apparent good reason) and the values of houses continue to decline.

Is "blame it on Bush" still a valid reason?

[NCVol]

Obama just HOPES enough people believe like you do.  

I'm not sure what you mean.  It's clear that we have a deficit crisis, and revenues are running around 15% of GDP, which is a sixty year low.  During the peak of the Clinton years, last time we "balanced" the budget, revenues were closer to 21% of GDP.  That difference is about $850 billion.  But the decline in revenues to a sixty year low share of GDP has NOTHING AT ALL TO DO WITH the deficits, it's reckless spending by Obama. 

So, clearly, since it's a spending problem and not at all a revenue problem, the answer is more tax cuts.  That's the position of every GOP candidate and the GOP Congress.  More tax cuts, to solve a deficit CRISIS!  Because, you know, the Laffer Curve, and Magic Fairy Dust will kick in and then we'll have our cake and eat it at the same time, because cutting taxes increases taxes, just look at history.   

Reagan slashed tax rates and.... deficits exploded.  Bush slashed tax rates and.....deficits exploded.  Clinton raised tax rates and ...... balanced the budget.  So it's clear based on the evidence that tax rate cuts will increase revenues!   In opposite land.... 

[Sasquatch]

I'm not sure what you mean. 

Grease Greece 2

[Jeremy Roenick]

NC, the damming CBO report recommends no, strike that, predicts that taxes will be going up drastically in the future.  It's an inescapable fact that with deficits this high, taxes must go up to slow the pace.  unfortunately it will lead to the same problem that Japan suffered through the 90's and still today.  The "lost decade" in Japan is growing into the lost two decades.  And we began our lost decade in 2008.  I wonder just how long ours will last?  It's going to be near impossible to lure manufacturing back to North America and be raising corporate as well as personal taxes all at the same time.

Bottom line is that if the Federal Government doesn't learn to live on limits like everyone else during these depressive economic times, raising taxes will NOT be the solution.  Only a stop gap before the eventual sovereign debt crash.