Who's Holding The Gun?

"If all economists were laid end to end, they would not reach a conclusion." ~ George Bernard Shaw

Trader Rick has asked me to post another blog entry, and although I am not feeling particularly passionate at this time about anything other than Obama's ongoing destruction of America, the moral decline in our country, and the continual media love affair with Obama and all things Democrat, I have blogged on those things ad infinitum.

What more can I say?

The only thing everyone is talking about right now is the question of whether raising the debt ceiling would be beneficial in solving the economic crisis or economic suicide.

I don't know.

I consider myself woefully inadequately educated, economically speaking, to address this subject with any kind of expertise.

I try to be objective but, I've heard both sides of the issue explained, and they all sound feasible in different ways, so instead of clarifying the issue for me, I am left further confused than before.

I just watched this video:



I've always made it clear that I am no economist. I don't understand economics. I'm sure if I did, I'd have more money in my bank account.

All I can do is relate the economic crisis is this country to my own economic situation. Throughout 40+ years of having to balance my income against my outgo, I have some practical experience with which to draw some (what I consider to be ) common sense conclusions.

Coincidentally, America's economic problems appear to be remarkably similar to my own, to wit:

Too much debt, and not enough money to pay it off.

Obama says Republicans are "holding a gun against the heads of the American people to extract tax breaks for corporate jet owners."

(and, by the way, isn't he one of the ones who blamed Republicans for the incendiary rhetoric that resulted in the shooting of that Democratic Congresswoman in Tucson, Arizona? I guess when you're the President, or at least a Democratic President, you can be as insensitive as you want)

Personally, I don't see it that way. The way I see it, Obama is the one holding the gun. He has been suggesting the Republicans want to take away senior citizen's social security, medicare, and medicaid if they succeed in not allowing him to raise the debt ceiling.

I don't believe for one minute that would be the consequence.

But, I admit, I don't know.

What I do know is this:

Raising the debt ceiling would simply increase the amount of debt we owe. That makes it harder to pay off. (duh!)

Example: If I have reached my limit on my credit card, and the credit card company offers to raise my debt limit so I can continue to charge more purchases to my account, eventually, I am going to be expected to repay that money. If the credit card company continues to raise my debt ceiling over and over again, I will come to the point where I can no longer make those payments. Then, I will default.

It's inevitable.

The Democrats insist we will be in default if we don't raise the debt ceiling, but in my experience, we will reach default status if we do.

The more we borrow, the more we are expected to pay back.

If we raise our debt to the point where our income cannot keep up with the pace of the increasing interest on our debt, how will we ever pay the debt back?

Especially if Obama wants to continue his reckless spending (and there is no evidence that he intends to stop). As I said, I don't know economics, but it seems logical to me that one cannot spend his way out of debt.

If we want to reduce the debt, we must stop spending so much, stop borrowing, and start living within our means.

Just as it works in my personal life.