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  #101  
Old 05-16-2011, 10:43 AM
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whell whell is offline
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Quote:
Originally Posted by finnbow View Post
I'm talking about responsible, credible people not currently serving in Congress. Those serving in Congress at the moment are concerned about their next election, plain and simple; not the debt, deficit or anything else.
So, by the way, why should we listen to those members of Congress or those that serve at the pleasure of the President? They are also political animals, concerned about the next election cycle. If we shouldn't listen to those who are suggesting that we can survive a technical default with limited impact, why should we listen to those who suggest that the consequences will be "catastrophic"?
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  #102  
Old 05-16-2011, 10:59 AM
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d-ray657 d-ray657 is offline
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I suppose this action is consistent with the GOP philosophy to stop programs they oppose by starving them to death. In this instance, by delaying approval of an increase in the debt limit, which will be required to even meet the budget the GOP has proposed and voted to approve, the GOP has placed a spending priority on interest. The more they play brinksmanship, the greater the chance of pushing up interest rates. The more money that we have to spend on interest, the less money there is to spend on those socialist ideas like social security and medicare.

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D-Ray
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  #103  
Old 05-16-2011, 11:14 AM
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Originally Posted by d-ray657 View Post
The more they play brinksmanship, the greater the chance of pushing up interest rates. The more money that we have to spend on interest, the less money there is to spend on those socialist ideas like social security and medicare.

Regards,

D-Ray
Sure, there's a chance of interest rates rising, but that's a risk that our dear leaders have chosen to take, doing everything they can to keep rates as low as possible. That strategy all by itself has consequences in other areas of the market that are disadvantageous.

Rates could also rise as a consequence of the US being seen in the world market as a less worthy credit risk. This is already starting to have consequences, and some investment companies have started to divest themselves of US debt holdings.

Also, every year that we pile on additional debt also increases the share of the US budget that must be spent on servicing interest on that debt. So, pick your poison: rates increase, or the share of the budget that must go toward paying off debt must increase.

Finally, you are aware that those "socialist programs" you site are in the non-discretionary section of the budget. Unless those programs are specifically reformed, they would continue to be funded.
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  #104  
Old 05-16-2011, 05:36 PM
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BlueStreak BlueStreak is offline
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Quote:
Originally Posted by d-ray657 View Post
I suppose this action is consistent with the GOP philosophy to stop programs they oppose by starving them to death. In this instance, by delaying approval of an increase in the debt limit, which will be required to even meet the budget the GOP has proposed and voted to approve, the GOP has placed a spending priority on interest. The more they play brinksmanship, the greater the chance of pushing up interest rates. The more money that we have to spend on interest, the less money there is to spend on those socialist ideas like social security and medicare.

Regards,

D-Ray
This is pretty much the game plan, isn't it?

Dave
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