Today I listened to one of my Congressman talking about the debt ceiling debate, his stance, and his understanding of the issue. He stated that it was like a credit card limit and he would not allow us to exceed this limit in the name of fiscal sanity.
No it is not a credit card or a credit card limit. Paying our bills is already baked into the fiscal pie, paying our bills will not change anything; it is the expectation of the markets. Bills are paid after the economic activity has already happened. You receive your paycheck after you have worked your hours. You pay your utility bill after you have used the electricity and water. You pay for that new roof after it is on your house. The bill comes due after the economic activity has occurred and the results of the activity are working through the economy.
Not paying the bills would be the unexpected economic event, this would change the market, and this would affect a large part of our economic activity by stopping the settlement of capital market debts.
My Congressman has never read our Constitution, a short document that is easy to read, the Constitution establishes that the congress will determine the spending and the Executive will pay the bills. My Congressman has it backwards, talking of his debt ceiling control of the President’s spending. In return for my Congressman’s complete ignorance of our system of government he receives over a quarter million dollars a year plus gold plated benefits. Good for him, bad for me.
I don’t accept the “low information” voter theory. There is some other reason for the appalling lack of education displayed by our political leadership, for insane leaders talking of sanity. I am leaning toward the large difference between campaigning and governing. Another example of putting crazy people in charge.