Debt Ceiling

In simple terms, Congress has passed a law limiting the total amount that the Government can borrow. (Similar to the amount you're allowed to charge on your credit card.)

The Government is now approaching that limit ("maxing out the card", so to speak) so Congress is debating whether to increase the limit (like a bank may increase your credit line).

Some in Congress are arguing that we don't need to borrow any more $$$, but need to seriously cut spending. Others argue that if we don't increase the ceiling, we won't be able to pay the bills which are coming due.

Come on over to the Poli Board for more good discussion on this topic.

I cannot wait to see this unfold, with the end result being the debt ceiling gets raised and the Republicans trying to position themselves for 2012

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Come on over to the Poli Board for more good discussion on this topic.

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That place scares me

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Balance Budget Amendment is the only mechanism I can think of that can save us.

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I heard on the news this morning that tax revenues cover only 65% of gov't spending. We borrow an additional 35% to cover the rest?

Great credit card / credit limit analogy.

And since our gov uses it like many unemployed people,ie putting their daily living expenses on it, its only a matter of time before the gov ends up like unemployed americans, in bankruptcy.

Most people assume that Congress will ultimately raise the debt ceiling at least once more in order to avoid defaulting. The biggest thing is that Republicans want to attach something like a balanced budget amendment or significant spending cuts along with raising the debt ceiling one last time in order to send the message that enough is enough and the debt limit cannot keep just being raised whenever the credit card is "maxed out".

I think both sides ultimately agree that we have to reduce the deficit. The biggest area of contention now is how to do that, whether it be through higher taxes or spending cuts. Democrats want to focus on raising taxes, Republicans want government spending to go on a diet.