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The Bigger Battle Behind the Shutdown
Wall Street Journal, by David Malpass

Original Article

Posted By:Desert Fox, 10/9/2013 8:36:41 PM

At its core, the shutdown is part of a much bigger battle to restrain the federal government. It is spending $3.6 trillion per year without a budget, and its expenditures are expected to increase rapidly in the years ahead. Meanwhile, the government has piled up $17 trillion in debt and $60 trillion more in unfunded spending promises. The Federal Reserve will borrow $1.1 trillion in 2013 alone to buy bonds—and it reserves the right to borrow unlimited amounts for future bond purchases without congressional or presidential permission. These are crisis-level problems. Whether the government is open or closed, they are surely grounds

      


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Reply 1 - Posted by: djcdjc, 10/9/2013 9:00:35 PM     (No. 9558420)

We need more shut in the shutdown. Fire someone, close something.

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Reply 2 - Posted by: oh-heck, 10/10/2013 12:38:42 AM     (No. 9558689)

I liked Rand Paul´s freshman year proposal to end all government programs that couldn´t simultaneously prove that they were within the limited powers of the constitution AND were deemed by the GAO to be effective. This is Obama´s real fear for Obamacare. If it is discontinued, people will begin to think about other ways of doing Medicare and Social Security.

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Reply 3 - Posted by: Country Boy, 10/10/2013 1:30:06 AM     (No. 9558724)

Guys like Malpass are brilliant with the accounting part of the problem, but they never speak of the absolute malice of obama and his traveling circus. Why?

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Reply 4 - Posted by: Philipsonh, 10/10/2013 3:41:05 AM     (No. 9558769)

Obama has promised to pay it all back after he leaves office, AT $1M per speech, one speech per day, he will have $365M or so annually to contribute. Let´e see, that will take only 17 million years, and as we have seen, he always keeps his promises. Perhaps we should just give him a waiver for the debt he was not responsible for and make it a round $10T he owes, as he needs the exemption and we don´t seek revenge. We are unlike him. and after all, he says he has reduced the Annual budget deficit ( using his math ).

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Reply 5 - Posted by: OhMy, 10/10/2013 7:36:43 AM     (No. 9558906)

One error or fudge if you like in this article is re Obama´s Social Security Payment scare. Since there is no separate fund only a stack of IOU´s for SS money already spent on other things the SS administration is obliged by law to present these notes to the treasury and convert these IOU´s into cash and pay the recipients. This causes a paper shuffle within the government but no overall increase in debt so the same amount can be borrowed within the old debt ceiling. You don´t need a debt ceiling increase to pay the SS recipients!!! Obama and his allies keep spreading confusion on this point and this article doesn´t help clear it up!

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Reply 6 - Posted by: Judith, 10/10/2013 7:54:34 AM     (No. 9558920)

After watching the fierce and passionate attacks on Sen. Cruz, it was quite clear to me that these people were fighting over money....it ALWAYS goes back to the money. The politicians have had time enough to get into the proper positions to receive their rewards. And I´d take a second look at sen. mccain.....I bet he doesn´t pass the smell test.

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Reply 7 - Posted by: guybee, 10/10/2013 9:27:25 AM     (No. 9559070)

#6 - McCain smells - doesn´t that pass the test?

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Reply 8 - Posted by: Cor-vet, 10/10/2013 10:07:07 AM     (No. 9559129)

I´ve always thought that all this noise about Congress wanting to keep their great healthcare package was bunk. Granted, it´s better than Obamacare, but I think the real reason is the hidden taxes in it, and the powers it gives the Government to go into you bank accounts, and the added taxes. After they´ve spent a life time stealing from the people, they don´t want the IRS to take it back!

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Reply 9 - Posted by: Patchy Groundfog, 10/10/2013 10:07:30 AM     (No. 9559131)

At $3.6 trillion per annum, Obama´s hogwash about ´paying our bills´ is particularly risible.

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Reply 10 - Posted by: planetgeo, 10/10/2013 10:18:50 AM     (No. 9559148)

The numbers involved are so astronomical that most people (including Congress and the President) don´t understand or even register just how serious a problem we are facing. Allow me to put it into human-scale terms so the reality can sink in.

Assume that you earn $25,000 a year. Your spouse has been insisting that you continue to spend $36,000 a year, and has done so for the last 5 years. In order to do this, the two of you have kept using new credit cards to pay the difference, as you have maxed out all your previous credit cards.

At this point, the total amount of your accumulated debt is $170,000. That´s just your credit cards. You also have long term loans that total another $600,000.

Exactly how will you be able to ever pay off those credit cards and those long-term loans while making only $25,000 a year?

The US budget, deficit, and debt fully explained.

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Reply 11 - Posted by: PoliticalJunky, 10/10/2013 10:49:30 AM     (No. 9559203)

When I got to the part where he was saying that the President should do this and the President should do that I gave up. The President isn´t going to do anything to correct his mistakes. Give up on the President! Expect nothing good from him. Then oppose him with all your might. Civil disobedience!

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Reply 12 - Posted by: NotaBene, 10/10/2013 10:59:13 AM     (No. 9559215)

He says that when interest rates on bonds go up, as they must, we will be ruined.

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Reply 13 - Posted by: Franz, 10/10/2013 12:33:07 PM     (No. 9559352)

I hope everybody will remember that Ted Cruz was responsible for defined this shutdown as the Republicans trying to kill Obamacare -- for the 47th time.

The real reason for the shutdown is the Democrats refusal to reduce the one trillion dollars of deficit spending. But, this was drowned out due to the Ted Cruz suicide mission.

Regarding Obamacare, the Republican positions should have been about:
1. Congress getting subsidized health care in violation of the Obamacare law.
2. Granting a one year exemption to individuals as was given to businesses.

But, this also was drowned out by the bombast to kill Obamacare.

The Ted Cruz "principled" stand is the reason Republicans are losing the battle.



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Reply 14 - Posted by: Franz, 10/10/2013 2:03:02 PM     (No. 9559457)

I wonder when Obama will start wanting us to call him Dear Leader.

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Reply 15 - Posted by: OhMy, 10/10/2013 2:58:03 PM     (No. 9559543)

How will you ever pay # 10 you just declare bankruptcy ( Default ) and walk away. In the case of the nation this is unconstitutional. In that case you have default by degrees. You have runaway inflation and pay off your debt with dollars that don´t buy nearly what they did when you borrowed them. A lot of people get hurt when that happens but it is good for Obama so he doesn´t care.

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