Spend and they will borrow or print money to fund it. The debt ceiling limit currently is $18.1 trillion. This number is 101% of the Government over-estimated GDP. If you add in the $7 trillion of taxpayer guaranteed Fannie Mae and Freddie Mac mortgage debt, the true directly funded level of Government debt is about $25 trillion, or 138% of the overestimated GDP.
The Treasury hit the debt ceiling limit earlier this spring. Since then Jack Lew has been borrowing cash from various “pools” of dedicated Government spending accounts, like Social Security and the Federal Employee Pension Plan (but not the Congressional Pension Plan, of course). Lew was on CNBC a couple days explaining that his “smoke and mirror” tactics are now exhausted and if the debt ceiling is not raised, the Government will default on obligations.
But this is nothing more than a production of political Kabuki theatre. The Senate I’m sure will rubber stamp any spending and debt plan that Obama sticks under its nose. But the House is controlled by Republicans with an agenda – not to force spending cuts and actually reduce the rate at which the taxpayers accumulate more debt – to use this crisis in order to force the passage of their fanatical military, political and moral legislation du jour.
The truth is that ultimately a new debt ceiling limit will be established and the Government will continue printing and borrowing printed money from other Governments in order to continue on its historically unprecedented rate of growth in spending. Mind you, this is spending mostly on programs which are used to transfer wealth from the middle class to the big corporations and wealthy elitists.
The fact that Paul Ryan is willing to step up and assume the Speaker of House role if certain of his pre-conditions are met tells me that the behind the scenes politicking and deal-making has already been largely accomplished. Now it’s simply of matter of the Government utilizing the media to apply a heavy dose of scare-mongering so that the sheeple in this country can lose a little sleep before getting the relief of an eventual agreement which should take the new debt limit over $19 trillion. Rest assured that this “crisis” will pass and no one will miss a swipe on their EBT card and the Pentagon can continue funding its terrorist activities around the globe.