Green Room

Ramirez does the math on debt ceilings

posted at 7:24 pm on October 3, 2013 by

I didn’t find a larger context in which to use this today, but it’s great on its own anyway.  Michael Ramirez looks to the next round of the fiscal fight, and the Pulitzer Prize-winning editorial cartoonist of Investors Business Daily does the math for us:

ramirez-debt

The problem is the spending, not the ceiling — but raising the ceiling won’t fix the spending problem, either.  As Barack Obama himself insisted when voting against a debt-ceiling increase in 2006.

Also, be sure to check out Ramirez’ terrific collection of his works: Everyone Has the Right to My Opinion, which covers the entire breadth of Ramirez’ career, and it gives fascinating look at political history.  Read my review here, and watch my interviews with Ramirez here and here.  And don’t forget to check out the entire Investors.com site, which has now incorporated all of the former IBD Editorials, while individual investors still exist.

Recently in the Green Room:

Blowback

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The Best In The Biz.

Bmore on October 3, 2013 at 7:41 PM

… and we WON’T DEFAULT on our debt payments if our credit limit isn’t raised!

Effin’ LSM …

ShainS on October 3, 2013 at 7:44 PM

ShainS on October 3, 2013 at 7:44 PM

Yeah I never understood that logic. Doesn’t it just mean we won’t be able to spend any more? And that would be a bad thing? Unless of course we are acruing interest as such a rate as to push us over the debt limit.

hopeful on October 3, 2013 at 8:12 PM

hopeful on October 3, 2013 at 8:12 PM

Exactly.

Here’s a good comment from another thread on this:

$2.5 trillion in receipts a year. $400 million in debt payments. It is impossible to default on our debt. We need to make that abundantly clear by actually shutting down the government and not raising the debt ceiling and prove that LIFE GOES ON WITHOUT WASHINGTON.

astonerii on October 3, 2013 at 8:16 PM

ShainS on October 3, 2013 at 9:17 PM

Obama’s coffee cup. LOL!

txhsmom on October 3, 2013 at 9:21 PM

Obama’s coffee cup. LOL!

txhsmom on October 3, 2013 at 9:21 PM

Heh.

Good catch — I missed that …

ShainS on October 3, 2013 at 10:20 PM

…he’s a gem!

KOOLAID2 on October 3, 2013 at 10:38 PM

The problem is not the spending, the problem is that Democrats believe they can simply print as much money as they want and grow government to build a permanent voting block.

xdwall on October 3, 2013 at 10:48 PM

No, the problem is that the Democrats keep getting elected because they use the spending power to buy votes from people too ignorant, stupid or just reckless to rein them in. This is the legacy of the New Deal and all the Democrat schemes based on it.

When Americans quit thinking that all this spending comes without having to pay for it, we’ll quit electing these gonnifs. Unless and until that happens, our future is just building toward collapse and chaos.

flataffect on October 4, 2013 at 12:25 AM

I still have adults that tell me that the debt ceiling is not the problem….drive me nuts.

Oil Can on October 4, 2013 at 1:26 AM

The sad thing is this has already become an old joke.

John the Libertarian on October 4, 2013 at 2:05 AM

For every $1 we spend on welfare, we get $2-$3 in revenue in return. Not to mention the trillions of dollars in GDP we generate for every $1,000,000,000,000.00 we borrow. We have to spend it to know how to save it.

This shutdown could really destroy Nancy’s hold on reality… Oh wait, no, it can’t.

Floriduh Jim on October 4, 2013 at 7:09 AM

I love the I <3 me coffee mug!

ctmom on October 4, 2013 at 9:02 AM

Ramirez does the math on debt ceilings
posted at 7:24 pm on October 3, 2013 by Ed Morrissey

I didn’t find a larger context in which to use this today, but it’s great on its own anyway.

It is great on its own, and worty of posting in the Green Room (thanks!), but it also deserves the larger exposure it would get in a regular post.

The next time Obama mentions the debt ceiling and how not raising the debt ceiling would be “irresponsible” because we supposedly have to raise the debt ceiling in order to “pay our bills”, use this image again in a main blog post.

Raising your credit limit does NOT “pay your bills”.

While it is true that raising your credit limit does not automatically raise your debt, the only way to stop increasing your debt is to BALANCE YOUR BUDGET.

If you’re never going to balance your budget, and just continue deficit spending, then yes, raising your credit limit will raise your debt because you’ll just keep defiict spending.

It would seem that the addict will keep up their deficit spending habit until they get cut off.

Hitting the debt ceiling (which we did in mid-May) and running out of other places to borrow (which the Treasury says is going to happen in mid-October when the “Extraordinary Measures” run out), would mean that there’s nowhere left to go to borrow money… the addict must change his ways and only spend as much money as he brings in. In other words, it forces a DE FACTO Balanced Budget.

At first this may sound contradictory, but I support doing the following:

1) Raise the Debt Ceiling by $1 Trillion

2) More than half of that (about $550 Billion) will go to repay the “Extraordinary Measures” borrowing that has already been incurred over the last 5 months and convert it to Treasury securities. That will give a true reflection of the total national debt that has already been accumulated (approximately $17.25 Trillion, more than double the amount of debt that Obama criticized when he personally voted against raising the debt limit).

3) Make it clear that this is the absolute LAST increase to the debt limit that Republicans will support.

4) We would only have $450 Billion remaining before we would hit the debt ceiling again. At current spending levels, that would last only about 4 to 5 months. We MUST past a BALANCED BUDGET for FY 2014, and pass that budget NOW.

ITguy on October 4, 2013 at 9:49 AM

Me too oil can

Clueless

cmsinaz on October 4, 2013 at 11:32 AM

ITguy on October 4, 2013 at 9:49 AM

Or….how about the next budget deadline that passes without passage by the Senate or signing by BHO results in IMMEDIATE INCARCERATION for both Harry Reid and Preezy Barrycade?

Nutstuyu on October 4, 2013 at 12:13 PM