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.
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