“The U.S. Constitution may be flawed, but it’s a whole lot better than what we have now.” [unknown]
I hope everyone enjoyed their holidays and had time for reflection and time with your families and had time to recharge your batteries. The latter is important because the next eight months are going to be very trying. While most people will be focused on the presidential and congressional elections, the business of government goes on and the business of government is fraught with peril. I want to take you back about seven months when this was the Bloombergg headline:
House Passes $2.1 Trillion U.S. Debt-Limit Increase; Senate to Vote Aug. 2
It doesn’t seem like that battle over the debt limit was so long ago. I remember clearly all fighting by our new Tea Party conservatives to not raise the debt ceiling and Treasury Secretary Geithner and the Democrats demagoguing that America would have to default unless the government could borrow more. Of course Geithner found ways to keep the government afloat by robbing federal pension funds and postponing some payments for a couple of months until Congress did in the end raise our debt limit $2.1 trillion, thereby, taking our debt limit from $14.34 trillion to $16.39 trillion.
This nearly 15% increase in the limit on our national debt was designed to hep the government operating into January of next year so that Obama would not have to deal with it again before the elections. Well, what is it they say about best laid plans of mice and men? Not only will we not make it to january, we will not make to the elections either. AZ Leader of the Inform the Pundits blog has broken the story in a post titled Best Kept Secret of the 2012 Elections.
At current spending levels the new debt ceiling will be reached on October 13th, 2012. That is less than a month before election day.
A few days ago, on April 2nd, the national debt stood at $15.62 trillion. Since May 16th the national debt has grown $1.28 trillion. There is about $770 billion left before we reach the next debt ceiling.
Since May 16th the national debt has averaged growing $3.98 billion each and every day.
Projected forward, that means we will reach the debt ceiling again on October 13th. That is a little more than six months from now and less than a month before election day.
I am not surprised by this news. I predicted this would happen shortly after the last Debt Ceiling Circus ended. Now AZ Leader, as you can tell by his title believes this will be kept secret and Geithner will do what he must do to keep it quiet until after the elections. That is not going to happen because AZ Leader, God bless him, has let the cat out of the bag and people like me are going to make sure the cat stays out of the bag.
Clearly our economy is not doing as well as the government and the MSM would like us to believe. So, the Debt Ceiling Circus is coming to Washington D. C. and I for one am glad. I’ve been a fan of circuses since I was a boy and I am sure this one will be very entertaining to watch. But this is not the only circus coming to our nation’s capitol this year. Once the Debt Ceiling Circus has left town and the elections are over, the Tax Circus will be setting up tent.
AZ Leader has been busy and put up another excellent post on Saturday with the title Brace For Taxmageddon 2013. In this article he lays out for us all the taxes that will go into effect on January 1, 2013 if Congress does not act before the end of the year.
Isn’t that exciting? We are going to have a lame duck congress and hopefully a lame duck president to deal with these tax issues. That should be fun to watch. Of course, if Mr. Obama turns out not to be a lame duck president, this won’t be a very fun circus at all. If Obama is re-elected you can count on most of these taxes going into effect. The Democrat clowns will be jumping for joy because the CBO will project that these taxes will generate trillions of dollars in new revenues that they can spend. You and I know that these taxes will only serve to drive the economy back into another recession.
So, boys and girls, stock up on hot roasted peanuts because the clowns in Washington are going to be working overtime for the rest of this year.
Well, that’s what I’m thinking. What are your thoughts?
[Authors note: My apologies for the late post. The electrons in my part of Venezuela called a five-hour work stoppage today. The Chavez government has been negotiating with the electrons in bad faith for over two years now. The electrons have demanded that the government employee more electrons to reduce their work load. Chavez responded by bringing in chintzy Cuban generators. Now the conflict has become racial in nature. The Venezuelan and Cuban electrons hate each other. I fear there will be more racial strife between electrons in the months ahead.]