The Real Debt Problem

Today is day 5 of the Debt Ceiling Talks in Washington D.C. On day 3 of the talks, House Majority Leader Rep. Eric Cantor (R-VA) told the press that President Obama had walked out of the talks  in a heated fashion.

“I suggested we were so far apart I didn’t see in the time before us how we get to where he wants us to be,” Cantor told reporters after the meeting.

Obama, in his typical affable and diplomatic manner, warned Cantor not to set such an ultimatum and threatened to veto any legislation that would extend the debt ceiling only for a short period.

“The president told me, ‘Eric, don’t call my bluff. I’m going to take this to the American people,’” Cantor said.

House Minority Leader Rep. Nancy Pelosi (D-CA) tried to defend Obama’s walk out by saying,

“He stayed for two and a half hours and listened to what members had to say. It was his meeting and the meeting had come to an end,” she said.

“The president could not have been more gracious. I have never seen a president spend so much time with the leadership of Congress day in and day out, respectful of their concerns,” Pelosi added.

Obviously it is quite humorous to watch the Democratic Party talk about needing to compromise when during the Health Care debate they held closed-door sessions and never considering any other plan but their own. The American people were ignored then just as they are being ignored now, and even the Republicans are ignoring them. House Speaker Rep. John Boehner (R-OH) was close to making a deal with the Democrats that would raise taxes when Rep. Eric Cantor started becoming more vocal on not raising taxes during the recession. All while White House Staffers received a 54% pay raise last year.

Meanwhile, President Obama continues to have press conference after press conference about how the American people are behind his plan to raise taxes.

“The bottom line is that this is not an issue of salesmanship to the American people, the American people are sold. The American people are sold, I just want to repeat this. … You have 80% of the American people who support a balanced approach. 80% of the American people support an approach that includes revenues and includes cuts. So, the notion that somehow the American people aren’t sold is not the problem. The problem is members of Congress are dug in ideologically into various positions because they boxed themselves in with previous statements. And, so this is not a matter of the American people knowing what the right thing to do is,  it’s a matter of Congress doing the right thing and reflecting the will of the American people. And if we do that, we will have solved this problem.”

As it stands, the debt subject to the limit is at $14.291 trillion and gaining $114,058,080 every day. With that, the ceiling should be hit in 78 days. All of these numbers derived from the US Treasury.

$79,207 every minute
$4,752,420 every hour
$114,058,080 every day
78 days to $14.3

But are the politicians talking about the real issue at hand when it comes to debt? We have a National Debt of $14.3 trillion but what is the number on the debt when it comes to household, business, local governments, state governments, financial institutions, federal government, and our unfunded liabilities? All of that combined comes out to around $168 trillion. With the federal government and unfunded liabilities alone it’s about $128 trillion. All of these numbers derived from the Federal Reserve.

Raising taxes is not the answer but as history has shown, lowering them while returning to a smaller government is the answer. We became the richest nation on earth because of that plan and now we have a President and Congress who are doing everything they can to take us back from that proven idea. People continue to complain about how big business CEO’s are keeping their money rather than investing it. When you have an economy that is very weak and uncertain, a government that regulates like nobody else, and taxes that can kill a business, you wouldn’t invest your money either because you have no idea if you will even survive to tomorrow. Meanwhile, 12 corporations pay effective tax rates of negative 1.5% on $171 billion in profits; reap $62.4 billion in tax subsidies. Those 12 corporations are GE, American Electric Power, Dupont, Verizon, Boeing, Wells Fargo, FedEx, Honeywell International, IBM, Yahoo, United Technologies, and Exxon Mobil. This from a study done by the Citizens for Tax Justice. And Wells Fargo received $25 billion in taxpayer bailouts.

Yet we have both parties saying that we need to compromise on a problem that both of them caused. Why is it that we allow the problem makers try to solve the problem just so that they can create more problems? And of course they won’t listen to the people because then they wouldn’t get the perks that they get now. Call your Representative and Senators and tell them that the American people do not want a compromise, that we don’t want the debt ceiling raised, that we want real cuts to spending and taxes. Tell them to look to the founding fathers and the long-standing history of how capitalism and the free market system have worked and made this country great. Tell them to WAKE UP AND SMELL THE TEA.


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