So, we are partially funded for the foreseeable future (ahem 6 months), the EPA riders were not included, there was somewhat of a mutually beneficial accord set up between both sides, so you all must be asking yourself the same question "what's next to bitch about?". The answer of course is the debt-ceiling.
Now, if you are looking for answers on how to raise your debt ceiling after your weekend binge at Nordstrom’s, stop reading. However, if you are wondering what a debt ceiling is, what the debate will consist of, who the big players will be in the debates, and how this will affect you, then find a comfy chair, grab yourself a Celestial Seasoning's Vanilla Chamomile Tea (hoping shameless promotion will get TAG employees free tea), and read on.
Let me preface the Pulitzer Prize winning work below* (if I do say so myself) by saying that this is Part 1 in a series of multiple blogs on this topic. So don't be discouraged that you will only get TAG insights on it just once, and even before the debates begin, because we aren't going anywhere folks.
*votes still being tallied
The debt-ceiling, simply stated and inherent in its name, is basically the capped amount of money a government entity can borrow. Wait!? We don't just print money whenever we need it!? Nope, and please refer yourself to paragraph 2, sentence one of this blog, and enjoy the rest of your day. So today the US debt-ceiling is at $14.3 Trillion dollars, which is ridiculously low if you A. own a group of islands in the Caribbean B. bath in 100 dollar bills C. are Richard Branson. D. are an out of control first world country with spending and borrowing practices that have yet to be reined in.
The US owes today $14.23 trillion dollars, according to Timothy Geitner, Treasury Secretary, and I am inclined to believe him due to the fact that he is...treasury secretary... we will reach out debt ceiling by May 16th, 2011 (ahem less than a month). If you guys were watching the CR debates as closely as I was then you probably already know that they won't begin debate on this until May 15th....kidding (although there is a precedence here guys!).
Essentially the debate is, and by essentially I mean the debate is, over whether or not to raise the debt ceiling, that is to say that all parties really want to raise the debt ceiling but not without some sort of assurance that this doesn't just mean more out of control borrowing/spending. If the government does not raise the debt ceiling then it will shutdown....wait a minute did we just transport back to two weeks ago?? Nope, same result different issue, it's like an R.L. Stine Choose Your Own Ending novel, except its always the same ending, different story, so it’s not like that at all...annnyway, if we go over the borrowable (made that word up) amount then emergency measures will be taken and it will extend the debt ceiling for 8 weeks.
Geitner warns that failure to act on the debt ceiling will cause and I quote “would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover.” ughhh I thought we were over that! I just started TIVOing CNBC's Mad Money again; don't make me not want to watch!
Marco Rubio (R-FL), the rico suave answer to all GOP's Latino prayers, has recently said he will not vote for the debt-ceiling. As someone that the GOP is putting a lot of hopes on for future leadership, I would suggest this is not the last time you hear from Rubio on this issue. Another big player, Conrad (D-ND) Chairman of the Senate Budget Committee, stated he will not committee to a long-term debt limit raise without significant progress/policies to shrinking the federal deficit. Conrad, being in the position he is, and being a relatively moderate Democrat, will be a prominent voice in this debate as well.
This is Part 1 in an ongoing post regarding the Debt Ceiling Debates (2k11) because we at TAG are positive it will be an intense fight down until the closing bell, and our insights will keep you apprised to where your country is going fiscally*, which party is doing what, and mostly will make you the hit of your dinner parties
*TAG does not claim to know where the country is going physically, as we are not experts (yet) on Pangaea, tectonic plates, or how countries move.
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