President Barack Obama has made himself clear: he will not sign a debt ceiling bill unless it’s “clean,” meaning that he will not negotiate.
Under President Obama, the total federal debt increased by 57 percent. Once he took oath, the federal debt stood at $10.6 trillion. The total debt now stands at $16.7 trillion. Under President George W. Bush, the total federal debt rose 38 percent. President Bill Clinton’s term saw a 32 percent increase of the total federal debt.
Due to the current federal debt, critics of this administration’s pursue of an increase in the debt limit have been pressuring lawmakers to ensure that Congress does not allow for an increase. Expanding the amount of money the U.S. can borrow means one thing in the long run: that the money we now have will not be spent on useful programs that need the funding, and that more money will be necessary in order to have some, if any, of what we owe paid back.
Reason’s Nick Gillespie points out in this video for Reason TV that because of the significant growth of the federal government’s net interest payments, the government will have to find a way to obtain more revenue in order to pay some of its debt, which will inevitably lead to a reduction of private investment in productive resources, stifling the economy and keeping potential business owners from dedicating themselves to their ventures.
As the partial federal government shutdown enters its second week, the calls for a “grand bargain” to solve all and sundry income and revenue issues have returned. The idea that Congress should pass a single, all-encompassing budget, even a balanced one, is a collective mental plague spread by inertia that must be eradicated.
Congress has not passed a full budget to fund the federal government since April 2009. Since then, unable to reach a deal on a full budget, spending has been controlled by successive continuing resolutions, adjusting total government funding levels for short periods of weeks or months each time.
Many say we have to be responsible and pass a real budget. But the truth is the concept of a single federal budget is actually pretty new. While the Budget and Accounting Act of 1921 created the first federal budget process, it wasn’t until the Congressional Budget and Impoundment Control Act of 1974 that the current version of mandatory budget proposals and resolutions was adopted. For the 150-200 years before that, all federal funding was appropriated with specific bills for programs or departments.
As Barack Obama begins his second term in office, trust in the federal government remains mired near a historic low, while frustration with government remains high. And for the first time, a majority of the public says that the federal government threatens their personal rights and freedoms.
The latest national survey by the Pew Research Center for the People & the Press, conducted Jan. 9-13 among 1,502 adults, finds that 53% think that the federal government threatens their own personal rights and freedoms while 43% disagree.
In March 2010, opinions were divided over whether the government represented a threat to personal freedom; 47% said it did while 50% disagreed. In surveys between 1995 and 2003, majorities rejected the idea that the government threatened people’s rights and freedoms.
The growing view that the federal government threatens personal rights and freedoms has been led by conservative Republicans. Currently 76% of conservative Republicans say that the federal government threatens their personal rights and freedoms and 54% describe the government as a “major” threat. Three years ago, 62% of conservative Republicans said the government was a threat to their freedom; 47% said it was a major threat.
As a consequence of loose monetary policy with a fiat currency, the United States is rapidly descending into an economic reality of Modern Monetary Theory, or MMT. While MMT (also known as Chartalism) is typically associated with its Keynesian predecessor and the policies of the Left, new developments reveal that both parties are responsible for the slip into a brave new economic world.
Essentially, there are four preconditions in Modern Monetary Theory:
1) Money enters the economy through government spending, as the total amount of money is constrained not by gold but by the total output of the national economy;
2) Government spending is speculative as it prints as much money as it needs to control production and, as a byproduct, employment, and spending beyond productive capacity leads to inflation;
3) Taxes do not pay for expenditures but are instead a way to throttle private sector demand; and
4) The government is the issuer of the currency, sovereign governments that issue their own currency are never insolvent, so debts essentially don’t matter.
Senator Rand Paul has a new plan to prioritize government spending in order to stave off defaults and bring the country back towards solvency:
In a renewed attempt to force President Barack Obama’s hand on the debt limit, Kentucky Republican Sen. Rand Paul is pushing legislation that would ban federal spending on anything but interest payments on the national debt, Social Security checks, and military salaries.
Paul, who is traveling through Israel this week, told Business Insider here Thursday that he believes the GOP should take a more pro-active approach to the coming fight over raising the debt ceiling. Rather than march the country toward a government shutdown — and spook markets with possible default — Paul argued that Republicans should pass a bill that would force the government to prioritize payments to bondholders.
With the “fiscal cliff” behind us, it’s important to remember that in less than two months, the Congress will be dealing with another manufactured crisis: The budget cuts of the 2011 Budget Control Act known as “sequestration.” The Department of Defense will bear 41% of the prescribed cuts, eliminating an additional $492 billion over 10 years. Although entitlement spending will also be on the table, the initial fight will be over cuts to the Defense budget.
A new study by the nonpartisan RAND Corporation concludes that the defense budget cuts cannot be taken without altering our overall defense strategy, and that “the department should modify defense strategy to fit the new resource constraints and prepare its course of action sooner rather than later.”
The authors highlight three alternative strategies, which anyone interested in this topic should read and consider. An accompanying article by the authors states, “Reductions of the magnitude implied by sequestration—some $500 billion over the coming decade—cannot be accommodated without a re-examination of current defense strategy.”
Cuts to defense and military spending should reflect a principled commitment to reducing wasteful spending, crony capitalism, and the size and scope of the part of the federal government with all the bullets and bombs — it should not be a matter of political convenience.
When congressional leaders sparred over whether or not to raise the debt ceiling last year, the parties agreed that if Congress failed to come up with a deficit reduction plan, automatic triggers would kick in, and would sequester $1.2 trillion in spending across the federal budget (mandatory and discretionary; defense and non-defense). That agreement, which came to fruition almost exactly a year ago to the day, reflected a trade the president made with House Republicans: he gave up demanding revenue increases in exchange for an agreement to include defense spending in sequestration. Speaker of the House John Boehner reluctantly agreed, making sure no triggers would go into effect until January 2, 2013.
Phil Kerpen is president of American Commitment, a columnist on Fox News Opinion, chairman of the Internet Freedom Coalition, and author of Democracy Denied: How Obama is Ignoring You and Bypassing Congress to Radically Transform America - and How to Stop Him.
The Hill newspaper named Mr. Kerpen a “Top Grassroots Lobbyist” in 2011. His op-eds have run in newspapers across the country and he is a frequent radio and television commentator on economic growth issues.
Prior to joining American Commitment, Kerpen served as vice president for policy at Americans for Prosperity. He also previously worked as an analyst and researcher for the Free Enterprise Fund, the Club for Growth, and the Cato Institute.
Kerpen blasts out spirited, pro-liberty tweets @Kerpen.
Throughout this Fast & Furious mess, nearly everyone has paid attention to just Darrell Issa and Eric Holder squaring off in a Congress committee room. But there’s another thing that should be focused on, that being the agency at the heart of this disgrace. But I surely cannot have been the only person to ask this question:
Why do we even have ATF around anymore?
Well, maybe I have. Bear with me as I try to answer it.
Let’s read their mission statement:
A unique law enforcement agency in the United States Department of Justice that protects our communities from violent criminals, criminal organizations, the illegal use and trafficking of firearms, the illegal use and storage of explosives, acts of arson and bombings, acts of terrorism, and the illegal diversion of alcohol and tobacco products. We partner with communities, industries, law enforcement, and public safety agencies to safeguard the public we serve through information sharing, training, research, and use of technology.
A “unique” agency? How can unique can that be?
“protects our communities from violent criminals” – Doesn’t every law enforcement agency do that?
“criminal organizations” – Sounds more like an FBI job or something for the gang squad of a local PD
“the illegal use and trafficking of firearms” – Okay, I can sorta see this one
“the illegal use and storage of explosives” – This one too, sort of, but I would think that other agencies could also handle explosions quite readily
“acts of arson and bombings” – Two words: fire department. Okay, four more: Federal Bureau of Investigation
What all the GOP candidates are after, are so-called ‘delegates.’Elected officials that will broker the convention of either party this fall. Officials are parcelled by the amount of votes, the candidates receive in the primary.
During Michigan’s primary recently, for instance, there were 30 official delegates, state-wide. Two were ‘at-large’ candidates, which meant they could be assigned individually to any winning candidate. The other 28 were ‘proportional’ ones, alotted through 14 congressional districts. During the push for the nominations in Michigan last night, Mitt Romney and Rick Santorum spent millions of dollars to influence the voting population; with TV ads, pamphlets, media, interviews, rallies, stickers, and much more. Michigan’s grand sum of politcal expenditure was near six million bucks.
Delegates are what really counts at the GOP convention. What looks to be happening, is that no clear winner will come out victorious. There’s a righteous number: 1444 delegates will win any nominee the victory-nod of the Republican National Committee. Nationwide, 2169 delegates are extended for contestation, until the RNC celebration in Tampa, Florida. From the RN Committee, an additional 117 delegates are added into the mix, ostensibly to keep debate lively and clear-up dead locks. So what appears, on first looks, to be a rather hot-headed and fast paced Republican rocket-launch to the RNC, is more like a jammed or misfired pistol in a duel.
Momentarily, Mitt Romney is in the lead, with 167 total delegates. Rick Santorum is second with roughly half, at 87. Newt Gingrich won only one state and has 32, while Ron Paul has 19 carefully collected delegations. The count may reshuffle at any moment, since constitutionalism and populism together, ring alarm-bells in states such as Arkansas, Kentucky, Tennessee, Texas, Oklahoma and New Mexico.