Dear The Czar,
There is much talk today about the debt limit.
At the National Tea Party Convention, the Republican leadership were given a warning that raising the debt ceiling without real changes in spending will result in primary challenges in 2012.
On the other side of the debate, Senator Charles “Never met a microphone I didn’t like” Schumer warned Boehner ‘not to be cute’ in his speech tonight at the Economic Club of New York. Mr. Schumer excels in using words like ‘playing with fire’ and ‘extreme’ regarding any views his opponents have, including if they believe the sky is blue.
Dr. J. is of the opinion that the Republicans were given a majority in the House for a reason. The reason was NOT to compromise with Harry Reid’s senate, or President Obama’s pen, but rather to do the will of the American people who voted overwhelmingly to press ‘undo’ on the last two years.
Regarding the debt ceiling, this is Dr. J.’s view. Money is coming into the treasury on a daily basis; therefore, paying the interest on our debt is a non-issue. Depending on the source between 7% and 13% of our tax dollars goes to service the debt. Dr. J. would hold fast that the interest on our debt must be paid first. That alone won’t solve all of the problems. That just addresses the debt we already owe. We continue to spend ~ $1.40 for every dollar we take in, and for that reason the debt ceiling, we are told, must be raised.
Given the reality of the situation, Dr. J. would raise the debt ceiling enough to cover the rest of the fiscal year, BUT would tie it to future budgets that are 95% of projected revenues. Dr. J. and all of the Gormo’s took our stabs at the budgets, so he doesn’t’ think that this would be an impossible strategy, just a strategy that weak willed politicians don’t have the fortitude to address.
Even Paul Ryan’s budgets run deficits in the short term before creating real debt reductions., however they are a reasonable compromise between Dr. J.’s Draconian Austerity budget and President Obama’s Drunken Sailor Budget with appropriate debt ceiling increases to permit Ryan’s budget to work its magic in the long term.
Hopefully the Republican leadership in the House will lead on behalf of the American people rather than try to compromise in order to endear themselves with the Democratic ‘cool kids’ who will never let them join the clique.
Thanks, Doc. What say ye to the actual Boehner proposal, which came out after you wrote this? That is, the proposal that every dollar the debt ceiling is raised will come with an equal or greater dollar in cut spending:
So let me be as clear as I can be. Without significant spending cuts and reforms to reduce our debt, there will be no debt limit increase. And the cuts should be greater than the accompanying increase in debt authority the president is given.
The Czar thinks this is pretty ingenious in the way it plays both sides off each other. The Tea Partiers dont see a net increase in the debt, or only see a decrease. The Democrats can get the debt ceiling raised, but at a cost. Basically, to the Obama administration it asks what they prefer more: spending, or debt. You can choose one, but not both. Let us see where their priorities are.
To which the good Doctor replied:
Dr. J. enjoyed reading the speech. The force lightning is a nice touch. Dr. J. agrees with the proposal of offsetting debt ceiling increases with REAL budget cuts. That being said Dr. J. wants cuts made with a machete, not a scalpel or deli slicer set to ‘shaved’ (which works nicely with ham, not so well with out of control government spending). The trajectory of the deficits and the debt need to be downward. Only then should Boehner raise the debt ceiling in order to get there.
Dr. J. hopes that Speaker Boehner agrees with Speaker Boehner and is willing to ‘be cute’ and ‘play chicken’ with the debt ceiling. The Democrats always expect the Republicans to blink first, and that’s because they do.
Божію Поспѣшествующею Милостію Мы, Дима Грозный Императоръ и Самодержецъ Всероссiйскiй, цѣсарь Московскiй. The Czar was born in the steppes of Russia in 1267, and was cheated out of total control of all Russia upon the death of Boris Mikhailovich, who replaced Alexander Yaroslav Nevsky in 1263. However, in 1283, our Czar was passed over due to a clerical error and the rule of all Russia went to his second cousin Daniil (Даниил Александрович), whom Czar still resents. As a half-hearted apology, the Czar was awarded control over Muscovy, inconveniently located 5,000 miles away just outside Chicago. He now spends his time seething about this and writing about other stuff that bothers him.