Quote:
Originally Posted by spence
Nor is raising the debt ceiling a means to spend more, it's a means to pay the bills. Spending happens to be declining faster than anticipated right now. Perhaps the Tea Party should focus on reinforcing a positive than legislation through threats...it's not a long-term strategy.
-spence
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Yeah, getting a larger line of credit does allow you to "spend" more money than you have on hand, and even more than a smaller line of credit would allow. And if you insist on the illogical reasoning that credit does not allow you to spend, but merely to pay bills, then explain what a bill is other than demand for payment for items on which you "spent." Of course, you have not really paid the bill, you've merely transferred the debt to a lender, presumably, if you're honorable and solvent, to repay the lender at a later time with actual income. That is, you will actually "spend" real money to pay for the borrowed debt which was used for spending on actual goods. So borrowing is a pseudo-method of spending and paying off the debt compounds the spending. And larger lines of credit will allow you to "spend" more money. Of course, if you constantly depend on this circuitous method of spending well beyond any means of income, and resort to more spending to pay-off previous spending as well as new spending, you would not be a reputable spender. And you will be in constant need of larger lines of credit.
As for spending declining faster than anticipated now, think SEQUESTER! Oh yeah, those dreadful cuts that were supposed to result in disastrous blows to our economy and to the help we all needed from the Federal Gvt. Well, now the results of the sequester are being applauded for the wonder of declining spending. Go figure. Strange also, how we need to raise the debt ceiling as spending is declining. Apparently, it needs to decline more. But first we must, once again, be warned of the impending doom that will result with cuts in spending. (The real doom will be to the ruling class as we find that we can actually make do with less and less of its "help"--especially with less and less of the debt it imposes on us for its "help" that makes us helpless.)
Oh . . . and those long term strategies . . . for what? Strategies to reign in the powerhouse of American freedom and transform it into the chains of a ruling class?
Another article by Hayward re "default" and other absurdities:
http://www.redstate.com/2013/10/14/d...lus-plan-ever/