The Debt Cieling Theater

How many of you think the debt ceiling scare tactics debate is a serious one? Well I hate to burst your bubble, but this is just another political act to steal your money.

Update: A Great analysis showing the debt deal as a total sham

Down to the basic issue.... How do we fix a debt problem with more debt? That's akin to giving a crack addict more crack so they don't get sick. Once he's out of that, you'll have to give the addict more and more and more. Eventually, there isn't enough crack in the world to satisfy the addict, and he goes into withdrawals and gets sick anyway. That's exactly what we're going here. You can't fix a debt problem with more debt, it's impossible.

What would happen if we didn't raise the ceiling? There would certainly be a lot of effects, but Obama's scare tactic that Social Security Checks won't go out just doesn't hold water unless we've been lied to this whole time.  What happened to the $2.6 Trillion Social Security Trust Fund? To Quote Forbes:

"Social Security status-quo defenders have assured us for the past 25 years that Social Security is fully funded—for the next 25 years, or 2036. So if there are real assets in the Social Security Trust Fund—$2.6 trillion allegedly—then how could failure to reach a debt-ceiling agreement possibly threaten seniors’ Social Security checks?

The answer is that the federal government has borrowed all of that trust fund money and spent it, exactly as Krauthammer asserted. And the only way the trust fund can get some cash to pay Social Security benefits is if the federal government draws it from general revenues or borrows the money—which, of course, it can’t do because of the debt ceiling."

So basically the government has been stealing "borrowing" our retirement money. Another reason they have to raise the debt ceiling is because if they don't they're going to have a LOT of angry people knocking at their door and asking them where their hard earned money is.

Let's pull a quote from one of my favorite blogs and an every day must-read, Fiat's Fire.

"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the U.S. Government can not pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies. Increasing America's debt weakens us domestically and internationally. Leadership means that, "the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better." - Senator Obama, March, 2006

So there you have it from the Prez himself.  I wonder what changed his tune?  I think this change of tune is due to the people yanking his chain.  Obviously, if he believed that statement then we wouldn't be going through this debt ceiling crap.  As stated earlier, you don't solve a debt problem with more debt.  But then again, without more debt the people running the banks (ed note: the Chain yankers) will have to settle for a JetStream 4 instead of a Jetstream 5 for their private jets.

Is anyone familiar with the Term "Problem, Reaction, Solution?"  This is a perfect example of that idea in action.  First we come up with a manufactured problem, the debt ceiling.  From this problem spawns all the drama that has been bantered about every couple of months.  Then they roll out the solution, which was the goal all along.  The ruling class wants our earned entitlement money.  Since they already have it, they create this problem and then have a solution that they need to steal reform the entitlement system because of this manufactured problem.  That way they get to keep the money they stole from us already without anyone noticing.

Does anyone still think this is a real problem?  It's a problem for them.  But for the working class in America... we don't need it.  We are past the point of no return anyway, extending the status quo just makes the rich and powerful more rich and powerful and the slave working class poorer and more indebted.  Welcome to America!

Update: More examples of Problem, Reaction, Solution thanks to Max Keiser from RT