Well folks, the proverbial snowball is going to continue to keep
rolling down the mountain. With the debt ceiling agreement deadline
looming, it looks like the Senate Democratic leader Harry Reid along
with President Barack Obama have finally caved, and have agreed, along
with the Senate Republicans to raise the US debt ceiling $3 trillion
dollars. This deal, if approved, is expected to extend through 2012-a
presidential election year. If you are counting, and I can't blame you
if you aren't-I have never had to use trillion in any form when I
balance my checkbook, that would increase our national debt from $14.3
trillion to $17.3 trillion. Whew! Boy am I relieved!
The
good news is we can put to rest the talk of not sending out social
security checks as well as paying U.S. troops. Medicare for senior
citizens will likely not be affected. Now, interest rates will not go up
and the dollar will not be devalued any further. I wonder how much
further it can be devalued? The stock market will likely not plunge.
Heck, there might even still be money available in the form of grants
and loans for Americans if they want to go to school and get educated.
Of course there are no guarantees that social security checks will be
mailed out on time. Or, guarantees that any other negative effects that
might be felt by the debt crisis will not happen. No my friends,
guarantees are pre-election material. This is not the time for hope and
change. Well, maybe spare change.
The bad news is the US national
debt would now be at a stout $17.3 trillion. The senate vote was 50-49
in favor of the increased debt ceiling. That means about half of our
elected officials in Washington, D.C. actually don't know how many
zero's are in a trillion. And there are 17.3 to account for. A
government default has been avoided....for now. For years our elected
politicians have proved they have no idea how to balance a budget. Of
course if you have someone's else's money to budget with, it really
doesn't matter if it balances or not. What is going to change moving
forward in the hearts, minds, and souls of our government officials that
will allow the start of debt reduction?
This proposed deal,
expected to be finalized on Monday, also includes a two step process
that would eliminate approximately $2.4 to $3 trillion in debt. How is
this going to be done? The first step would be to eliminate $1 trillion
through spending cuts. Additional deficit reduction would involve cuts
to Social Security and Medicare. A special committee of Democrats and
Republicans would work together on this debt reduction which would also
include tax reform. Long story short-the thrifty spenders on Capitol
Hill would like to put a band-aid on a bullet wound. Let's hope
otherwise and pray that a paycheck and proper medical attention can be
afforded for not only our invaluable troops but all American citizens.
Democrats
and Republicans working together to solve perhaps our nation's biggest
problem. Wow! I hope you live in the sunbelt because the snowball is
getting bigger and moving faster and you still have a chance of it
melting a little before it reaches you.