Wednesday, July 27, 2011
Grasping for straws
News media are carrying versions of a last gasp story that the US will be able to pay more bills than some people expect. It turns out that the collection of federal receivables recently has been better than expected. But this is not a silver lining to our impending cloud, rather it illustrates the need for an increased debt ceiling. Federal cash inflows are erratic and difficult to pin down to a particular time or date. Even in the old days when both parties were still sane and worked together, borrowing was necessary. Like paving on a road it evens out the bumps and insures a smooth ride through the fiscal year. Without it the government devolves to a third world style hand to mouth existence, waiting for revenues to come in before making payments. Lord knows why the Republican/Teabaggers think this is a good idea, but when you include their efforts at enforcing an unnecessary austerity to force the economy into a second Depression, it would appear to be a good time to examine their loyalty to the United States.
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