“No Man’s life liberty or property is safe while the legislature is in session”.

- attributed to NY State Judge Gideon Tucker

Monday, January 3, 2011

Austin Goolsbee's Debt Ceiling Lies

I happened to catch the perennially wan-looking administration chief economic hack, Austin Goolsbee, on CNBC this morning. Or at least some recently-recorded remarks by him.

The topic was the House Republicans' threat to maintain the US debt level ceiling, rather than, as is typically done, automatically vote to raise it.

Doing so is much like your credit card issuer routinely raising your account limit every time you come within a few dollars of exceeding it, no questions asked.

To illustrate how surreal administrations, particularly this one, have become, Goolsbee claimed that failing to increase the debt ceiling would cause a US default.

Isn't it interesting that Goolsbee chose not to argue for drastic federal budget slashing, in order to fit spending within the existing debt ceiling by cutting new borrowing?

The administration's culture is simply out of touch with America's current fiscal reality. We indifferently run continuing annual deficits and ever-increasing external debt, while continuing to fund overly-generous transfer payment programs which are unlinked to the national economic health.

I hope Congress does hold firm on the debt ceiling, citing fiscal prudence. Then the administration will be forced to come to terms with its lavish spending and begin to live within the existing debt levels.

Let the spending rollback begin!

1 comment:

Brad said...

Dear C, Can you even imagine these republicans holding the 'line' on the current debt? There is no better way to prove they were listening, to prove they were stern conservatives.

We can only hope,