Democrats Announce Major Changes To House Rules

Nov 2012
10,501
8,659
nirvana
#1
Democrats will revive the "Gephardt Rule," introduced in the late 1970s by Rep. Dick Gephardt, D-Mo., that automatically raises the debt ceiling — the nation's borrowing limit — once the House passes a budget.

Democrats Unveil Changes To House Rules On Debt Ceiling, Ethics

That's right. The House nutjobs won't be able to cause a shut down anymore. And since McConnell isn't going to allow it in the Senate, the righties just lost a major tool in their extortion arsenal. I guess they'll just have to settle for what they do best. Whine and cry.
 
Jul 2018
1,283
303
Earth
#4
Yeah, that's just fantastic. I mean, why have a limit on their credit cards.
The federal government gets money from taxes or from borrowing (debt). If you don't want to pay more in taxes to reduce or to eliminate borrowing then why whine about the debt?
 
Mar 2008
9,638
4,887
australia
#5
Yeah, that's just fantastic. I mean, why have a limit on their credit cards.
because there isnt one.

a government who issues their own debt denominated in a currency they also issue is a fundamentally different thing to someone having a credit card.

completely different, incomparably different.

it doesnt matter how big the us 'debt' gets, the government can never default. in fact, debt is the wrong word, its not going to be repaid, it cannot actually be repaid, and it doesnt matter. the us isnt broke, anyone who says crap like" the government is living beyond its means" is ignorant of economics.
 
Likes: skews13
Dec 2013
33,087
19,184
Beware of watermelons
#6
because there isnt one.

a government who issues their own debt denominated in a currency they also issue is a fundamentally different thing to someone having a credit card.

completely different, incomparably different.

it doesnt matter how big the us 'debt' gets, the government can never default. in fact, debt is the wrong word, its not going to be repaid, it cannot actually be repaid, and it doesnt matter. the us isnt broke, anyone who says crap like" the government is living beyond its means" is ignorant of economics.

Yeah, I'm fully aware of that. It was am analogy.


The singular brilliance of the debt ceiling however, is that it keeps reminding everyone that there is a growing national debt that never seems to shrink. That is a tremendous service to American citizens who live in the dark regarding the borrowing machinations of their political overlords. Yes, politicians keep raising the debt ceiling, but nowadays they have to bend themselves into ever twisty pretzels trying to explain why to their justifiably skeptical and cynical constituents. Most people don’t understand bond yields, quantitative easing, and Keynesian pump-a-thons too well, but they sure understand a debt ceiling.


https://mises.org/library/who-needs-debt-ceiling
 
Dec 2013
33,087
19,184
Beware of watermelons
#7
The federal government gets money from taxes or from borrowing (debt). If you don't want to pay more in taxes to reduce or to eliminate borrowing then why whine about the debt?
That is a ridiculously narrow pov.
 
Nov 2012
10,501
8,659
nirvana
#8
because there isnt one.

a government who issues their own debt denominated in a currency they also issue is a fundamentally different thing to someone having a credit card.

completely different, incomparably different.

it doesnt matter how big the us 'debt' gets, the government can never default. in fact, debt is the wrong word, its not going to be repaid, it cannot actually be repaid, and it doesnt matter. the us isnt broke, anyone who says crap like" the government is living beyond its means" is ignorant of economics.
I think he’s a trust fund baby. It’s the only economics they understand.
 
Mar 2008
9,638
4,887
australia
#9
Yeah, I'm fully aware of that. It was am analogy.


The singular brilliance of the debt ceiling however, is that it keeps reminding everyone that there is a growing national debt that never seems to shrink. That is a tremendous service to American citizens who live in the dark regarding the borrowing machinations of their political overlords. Yes, politicians keep raising the debt ceiling, but nowadays they have to bend themselves into ever twisty pretzels trying to explain why to their justifiably skeptical and cynical constituents. Most people don’t understand bond yields, quantitative easing, and Keynesian pump-a-thons too well, but they sure understand a debt ceiling.


https://mises.org/library/who-needs-debt-ceiling
but its an absurd analogy. its not even comparing apples with oranges, its comparing apples with the international space station.

there isnt an upper limit to how big the debt can get, japan is proof of that. the "debt ceiling" is an artificial political tool of no value. the "debt" is only going to grow because it cannot actually shrink, its never going to be repaid, and doesnt need to be. even calling it "debt" is deceptive, you havent actually borrowed the money from anyone.
 
Jul 2014
14,117
8,573
massachusetts
#10
The debt ceiling is a silly artifact of the restructuring of government finance that took place during WWI.
Before the debt ceiling, each spending bill stated where the funds would come from, if it was borrowing it had to specify details,like the interest rate and even the design of the bonds to be issued.

To streamline the process, the assumption was that congress intended to spend the money, so the treasury should just pay the bills out of a general fund and when the money was gone, it should issue bonds.
Some one suggested that an open ended process seemed irresponsible, so they added a debt ceiling, which was raised every time the debt approached without great debate or even much notice for 80 years, until the GOP discovered it could be used for political drama in 1995.
 

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