The truth about the “government re-opening” and the debt limit:

Debt CeilingFrom the

There’s no actual debt ceiling right now

by Alex Pappas

There’s no actual debt ceiling right now.

The fiscal deal passed by Congress on Wednesday evening to re-open the government and get around the $16.4 trillion limit on borrowing doesn’t actually increase the debt limit. It just temporarily suspends enforcement of it.

That means Americans have no idea how much debt their government is going to rack up between now and Feb. 7, when the limits are supposed to go back into place and will have to be raised.

There is no dollar amount set for how much debt the government can accumulate between now and then. The suspension strategy was employed first earlier this year during previous fiscal battles in Congress.

The nasty little truth that no one will tell you.  Plus: what’s actually in the bill?

Looks like the “stopgap bill” is packed with pork.

From the

That’s rich! Sen. Lautenberg’s millionaire widow pockets $174K in shutdown deal

By Stephen Dinan

Buried inside the new stopgap spending bill are several goodies, including nearly quadrupling the maximum price of a dam project on the Ohio River that is turning into a boondoggle — up to nearly $3 billion.

The bill also includes $174,000 of taxpayer money for the widow of the late Sen. Frank R. Lautenberg. The death gratuity, which has been paid to widows of other lawmakers in the past, raised hackles since Lautenberg was a multimillionaire, while the government is $16.7 trillion in debt.

Are you serious?  Are the Demorats and the Republicans pressing porkish fluff into what is perceived as an Emergency Bill to “keep America solvent”?

In one word: yes.

Thank God there’s a semblance of sanity within:

But lawmakers did nix one provision that was in an early draft posted online — they canceled authority to build another Coast Guard cutter, as a cost of nearly $600 million.

Wow.  I was sweating that one.  Far be it from us to approve the construction of something as trite and unneeded as another stupid and unnecessary USCG ship.

Included in the measure is money to pay back all of the states that signed agreements funding national parks within their borders during the shutdown — with interest.

Payback with interest.  How generous.  With YOUR hard-earned money.

The measure also repays all federal employees for the days the government was shutdown, including the hundreds of thousands who were furloughed and didn’t work.

Hello?  Government Welfare?  Getting paid to not work?  What kind of a wonderful deal is that?

It also:

-Lets the Defense Department continue assisting African forces pursue Joseph Kony, leader of the Lord’s Resistance Army, a rebel group accused of atrocities.

Right.  In a “last ditch moment” bill designed to keep the government running.

My Congressman, Tom McClintock, wrote:

The debt limit exists for a simple reason: to assure that public debt isn’t recklessly piled up without Congress periodically acknowledging it and addressing the spending patterns that are causing it. If a debt limit increase is supposed to be automatic, as the President suggests, there really is no purpose to it.

A new dimension has now appeared in this discussion. Unlike every one of his predecessors, this President has vowed that unless Congress unconditionally raises the debt limit, the United States will default on its sovereign debt.

The President has been ruthless and vindictive in the way he has handled the shutdown, refusing House leadership’s offers along the way. I now believe that this President would willfully act to destroy the full faith and credit of the United States unless the Congress acquiesces to all of his demands. His every statement and action is consistent with this conclusion.

If the Republicans acquiesce, the immediate crisis will quickly vanish, credit markets will calm and public life will return to other matters. But a fundamental element of our Constitution will have been destroyed and a perilous era will have begun.

And that did occur.  In the hindsight of this article, the Republicans did in fact “cave.”

The power of the purse will have shifted from the representatives of the people to the executive, in which the President sets spending levels and vetoes any bill falling short of his demands. Whenever a deadline approaches, one house can simply refuse to negotiate with the other until Congress is faced with the Hobson’s choice of a shut-down or a default.

But here’s the point:

The nation’s spending will again dangerously accelerate, the deficit will again rapidly widen, and the economic prosperity of the nation will continue to slowly bleed away.

This impasse may have started as a dispute over a collapsing health program but it has now taken on the dimensions of a constitutional crisis.

You and I both know this is true.


McClintock and Sean Hannity audio here.

McClintock and Mark Levin audio here.

Obamacare - Let Them Eat It


Obama: ‘Raising the Debt Ceiling…Does Not Increase Our Debt,’ Though It Has ‘Over 100 Times’

Obama on Debt CeilingThe Emperor is naked.


Revealed by himself.


Correct; take a look at that headline above once more.

By Craig Bannister

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.

Discounting the sheer insanity of that statement, it’s odd, isn’t it, that the only media outlets reporting this little gem are those leaning to the right.  The rest of the American Media Maggots are reporting that Mr Obama “refuses to let the debt limit be a bargaining chip.”

This is the same man who, as a senator, ranted about having to vote for an increase in the national debt to roughly $8 trillion dollars — a drop in the bucket today.

The Emperor is not only naked, but chancred, addled and drooling.




Wealthy Dump Assets Amid Worries About Going Over ‘Cliff’

This might be called a “clue.”

From — imagine this —

For many of the wealthy, 2012 is becoming a good year to sell.

They’re worried about the “fiscal cliff,” which is when tax cuts expire and spending cuts are set to go into effect at the end of the year.

Fearing an increase in capital gains and dividend taxes, many of the rich are unloading stocks, businesses and homes before the end of the year.

Wealth advisors say that with capital-gains taxes potentially going to 25 percent from 15 percent, and other possible increases in the dividend tax, estate tax and other taxes, many clients are selling now to save millions in taxes.

“Under almost any scenario, it makes sense to take the gains this year,” said Gregory Curtis, chairman and managing director of Greycourt & Co. “Clients aren’t selling willy nilly. But if they can and they have a huge gain, they’re selling now.”

If the Bush-era tax cuts expire, taxes on capital gains would revert back to its previous rate of 20 percent from its current 15 percent.  Another 5 percent may be added from health-care levies and changes in itemized deductions, bringing the rate to 25 percent for many high earners.


If we survive December 21st of 2012, then 2013 is a new issue entirely.

January 1st, ladies and gentlemen.  At this point: Taxmageddon.

Don’t say you weren’t warned.