Next Time They Shoot To Kill

Isn’t having Obama as President awesome? Because Obama still insists on raising taxes in a slow economy, something everybody knows would never pass the House of Representatives, the United States is in danger of losing its AAA credit rating. No one can say we haven’t had an impossible to miss or misinterpret warning shot fired across our bow.

U.S. Debt Rating Placed on Review for Downgrade by Moody’s as Talks Stall

Moody’s Investors Service raised the pressure on U.S. lawmakers to increase the government’s $14.3 trillion debt limit by placing the nation’s credit rating under review for a downgrade.

The U.S., rated Aaa since 1917, was put on review for the first time since 1996 on concern the debt threshold won’t be raised in time to prevent a missed interest or principal payment on outstanding bonds and notes, even though the risk remains low, Moody’s said in a statement yesterday. The rating may be reduced to the Aa range, and there is no assurance Moody’s would restore its top rating, even if a default is quickly “cured.”

See also:
Moody’s May Downgrade U.S. Debt, If Crisis Isn’t Resolved
Moody’s: If U.S. Misses Debt Payment, Rating Could Be Cut Next Day
Moody’s moves on US credit rating
Moody’s puts debt rating on review
Moody’s downgrade threat adds to US woes
Moody’s considers downgrading U.S. credit rating
Moody’s Puts U.S. AAA Credit Rating at Risk of Downgrade
US debt crunch: A nation taken to the limit
Reports: S&P Says U.S. Rating Could Be Downgraded If It Misses Any Payments
Cost of Protecting U.S. Debt Rises on Moody’s Action

Boy oh boy, you think we have a debt problem now? Just watch what happens if our debt rating gets cut. It will immediately become more expensive to borrow money, thus compounding our already beyond serious debt woes, a self inflicted wound, like tasering ourselves in the neck. Obama needs to drop his, non starter in the House, tax increase obsession and get on with increasing the debt ceiling. You know, if Obama wanted to intentionally destroy the U.S. economy, he couldn’t be doing a better job. Is he the President or an enemy of the United States?

/if you’re ever wondering what Obama might be thinking of regarding U.S. economic policy, just ask yourself, what would Vladimir Putin do (WWVPD)?

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Running On Empty

Actually, we’re running beyond empty now. The United States can’t legally borrow any more money until Congress acts to raise the debt ceiling.

US government hits debt ceiling, lighting 11-week fuse

Treasury Secretary Timothy Geithner informed Congress on Monday that the United States has reached its legal debt limit, setting off a ticking time bomb that could explode in less than three months if lawmakers can’t bridge differences and allow more government borrowing.

In hitting the $14.3 trillion debt ceiling – the limit on how much the government can borrow – the Obama administration on Monday began temporarily halting payments to the retirement and federal pension accounts of federal workers and started borrowing from those funds, to be restored later.

Geithner sent a letter to Senate Majority Leader Harry Reid, D-Nev., warning that the government can move money around for about 11 weeks but if a new debt ceiling isn’t agreed to by Aug. 2, the U.S. government could effectively default on its obligations to its creditors. He warned of “catastrophic economic consequences for citizens” unless Congress raises the debt ceiling.

An increase of about $2 trillion is expected, enough to get the issue past the 2012 elections before Congress would have to lift it again.

Republicans who control the House of Representatives vow to link raising the debt ceiling to cuts in government spending of at least equal measure. In a combative statement Monday, House Speaker John Boehner, R-Ohio, upped the ante.

“As I have said numerous times, there will be no debt limit increase without serious budget reforms and significant spending cuts, cuts that are greater than any increase in the debt limit.” Boehner has called previously for $2 trillion in spending cuts as part of any deal to raise the debt ceiling.

See also:
US hits $14 trillion debt limit
US Hits Debt Ceiling, But Treasury Market Rules Out Default For Now
Deja Vu, But No Disaster: U.S. Government Hits Debt Ceiling
U.S. Hits Debt Limit, Sky Doesn’t Fall
U.S. hit debt limit today
Treasury Tapping Federal Retirement Accounts to Stave Off Default
Turbo Tim Raids Pension Plans
With Debt Limit Maxed Out, Lawmakers Hold Firm On Remedy
Rep. Jordan: U.S. won’t default if debt ceiling isn’t raised
U.S. National Debt Clock

Well, we hit the debt ceiling and, despite all the Democrat Chicken Little hysteria, the Sun didn’t explode, the seas didn’t boil, and the markets didn’t plunge thousands of points. Go figure.

/all I can say is that the Republicans had better stand firm and hold their ground this time and hold out for concrete, verifiable spending cuts that at least equal the amount of any debt limit increase

A Line In The Sand?

Does he mean it this time or will he cave to the out of control spending Democrats yet again?

Boehner says ‘trillions’ in cuts loom on debt vote

The top Republican in Congress wants trillions of dollars in spending cuts as part of must-pass legislation permitting the government to continue to borrow to fund its operations and meet obligations to investors.

House Speaker John Boehner, in a speech prepared for delivery Monday night, says it would be irresponsible to raise the so-called debt limit beyond its $14.3 trillion cap without a major effort to curb the spiraling deficit. He says the cuts should be larger than the amount of the permitted increase in the debt.

See also:
John Boehner’s tough talk on debt limit: a departure from history
Wonkbook: Boehner’s debt-ceiling demands
Boehner: Spending cuts should be greater than debt limit increase
Boehner really isn’t asking for that much to raise debt ceiling
Wall Street Takes Boehner Debt-Limit Speech In Stride
Speaker Boehner: Tax hikes are ‘off the table’
Speaker Boehner: Tax Hikes Are ‘Off The Table’
Republicans Rule Out Tax Increases in Battle With Democrats Over Debt Cap
John Boehner’s debt pitch has risks for GOP
Boehner’s debt-limit speech: Reactions from the Hill
Democrats and Republicans Spar Over US Debt Ceiling
Boehner reiterates GOP’s ransom demands
Obama aide: Boehner shouldn’t hold debt limit ‘hostage’ to spending cuts

So, have Boehner and the Republicans finally grown a spine? They talk the talk, but can they walk the walk? They’re on the right side of fiscal reality and American public opinion in this all the marbles battle for the country’s very economic survival. The stakes for our future literally couldn’t be any higher.

/hopefully, they won’t chicken out again, the last time they promised to stand their ground on spending cuts, it ended in a humiliating disaster for Republicans

A New World Record

And it’s not a record to be proud of.

At $14 trillion, US debt surges to all-time high

The United States just passed a dubious milestone: Government debt surged to an all-time high, topping $14 trillion – $45,300 for each and everyone in the country.

That means Congress soon will have to lift the legal debt limit to give the nearly maxed-out government an even higher credit limit or dramatically cut spending to stay within the current cap. Either way, a fight is ahead on Capitol Hill, inflamed by the passions of tea party activists and deficit hawks.

See also:
At $14 trillion, US govt debt surges to all-time high
National Debt Tops $14 Trillion … Increased 60% Under Speaker Pelosi
Record $14 trillion-plus debt weighs on Congress
US National Debt $14 Trillion And Growing
National debt greater than $14 trillion
Federal Debt Tops $14 Trillion, U.S. Treasury Reports
Record $14 trillion-plus debt weighs on Congress
US National Debt Crosses Alarming Level of $14 Billion
American deficit reaches $14 trillion; Congressional leaders set for fight over raising debt ceiling
Republicans coming to grips with debt ceiling
Some commentators now say everyone should chill about debt ceiling
Who Owns The U.S. National Debt?
How the Debt Ceiling Could Ding You
The US won’t default, even if the debt ceiling stays
The debt ceiling and default
Real Time US National Debt Clock

So, will Congress actually do something meaningful to rectify this bad situation we’re in or will they just kick the can down the road again?

/the longer we wait to make the tough choices that will be required, the more painful those choices will be