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Republican-Controlled House Votes a $50 Billion Bailout as Part of the Debt Ceiling Fight

Written by Gary North on January 16, 2013

The Republicans in the House have come up with a new strategy to force Obama to accept a debt ceiling. In their principled stand against increasing the national debt, they voted to send $50 billion of borrowed money to state governments that would otherwise have suffered deficits. The justification? Hurricane Sandy.

Better to borrow more money, which will never be re-paid, than to force residents of hard-hit states to pay higher taxes to their state governments.

The Republicans drew a line in the sand. Obama is not going to get away without criticism for coming before the House of Representatives and asking for another hike of $1 trillion. No, sir. He will not get away with this. Now he must come with a demand to raise the ceiling by $1 trillion, $50 billion. Let the fight begin!

And what a fight it will be: a President determined to spend, spend, spend borrowed money, who will face a determined Republican majority in the House, which is determined to balance the budget without raising taxes.

This is democracy.

This is economic reasoning at the very top.

This is how the Congress of the United States will move forward in the fight for fiscal sanity.

This is why concerns over the economic future of the federal government are overblown.

For as long as determined budget-cutters draw a line in the sand, standing firm on principle, the American people will remain safe from the threat of government default on its debt. Their economic futures will remain assured. America’s economy will remain as sound as the dollar. Anyone who says otherwise is a purveyor of fear, a person hypnotized by addition.

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18 thoughts on “Republican-Controlled House Votes a $50 Billion Bailout as Part of the Debt Ceiling Fight

  1. Would someone please explain to me, how and when has it become the American taxpayer's responsibility to pay for a homeowners, loss for their house,because of an natural disaster? Aren't insurance companies in business for that reason? If they refuse to honor their policies, then, perhaps the law should intervene and force the insurance companies honor the policy holders agreement! I don't know when this practice began but it seems to me that we are now responsible for too many, "Governmental Edicts!"

  2. Obama resembles Hitler in more ways than one. They have a lot in common from their origins to their attainment of power. Hitler took guns away from the Jews so they could not defend themselves. Obama wants to take guns away from law-abiding Americans (in contract to the right guaranteed under the Constitution) so that we will not be able to defend against radical Islamists whom Obama supports. Impeach!!!

  3. Shock Therapy says:

    I hope your readers understand sarcasm, Dr. North. If not, you whole point will be lost. THIS administration will NEVER admit it is wrong or change its ways. THIS congress and senate are no different. It might as well be the wild west and every man for himself. The situation is dire. Offer us some REAL action plans. If not REAL, at least make them realistic. Please don't become irrelevant.

  4. Phillip the Bruce says:

    Of course America's economy will remain "sound as a dollar." I.e., not very.

  5. Texas Chris says:

    At some point it becomes immoral to continue paying income taxes.

  6. ex ghetto nurse says:

    It will be a "welfare, entitlement, low IQ, inner city, unskilled, criminal culture" dollar. My Euro friends and family have come to their senses with all the illustrative news items i've sent. Thankfully, avoiding investing in anything BUT farmland.
    Now the Asian part of the family woke up too. Tours of the obama villes (The 'hood) really turned their heads.
    How much longer before big investors demand higher rates to support this burden?

  7. I was waiting for the punch line, then it hit me. sarcasm.

  8. I have not seen this question raised, Did these homeowners buy Flood Insurance ( which is sponsored by the Federal government at attractive rates). If they did not, why should the rest of us taxpayers have to foot the bill? Willf

  9. Not only is it immoral, the courts have ruled time and again since 1913 the income tax is an indirect tax (although it's levied as a direct tax) and must be subject to apportionment (which it is not). Plus its collection violates the spirit and almost every amendment to the Constitution (which all public servants swear an oath to uphold and defend). By allowing the illegal enforcement and collection of the income tax tp continue, every official involved in it is "warring against the Constitution", i.e., committing treason.

    (pause while all the usual suspects blather about "Of course it's a 'direct tax', I send my income tax return DIRECTLY to the federal government!")

  10. Absurd that the taxpayers pay for a homeowners loss because of a natural disaster. That is what flood insurance is for. If you gamble and lose don't expect someone else to pick up the tab.

  11. bailouts galore lead to this: http://economiccollapsenews.com/

  12. Let’s ignore the fact that Pubs ignore the people’s reality and call on people to vote for them again.
    Lib voters get what they want. Pub voters get what they do not want. If Pub voters had b lls they would walk away from a party that refuses to serve them. In so doing make the Pub party will become another minor party that will still serve the Dem party.
    Real progress will start to unfold and in a short time the, keep your dirty hands off my SS Libs will finally see that the only ones with dirty hands on their SS is the Dems. http://www.numbersusa.com / http://www.goooh.com

  13. Paul Colby says:

    Soon, just the interest on our National Debt, will take almost 100% of our spending! Will the Liberals and dependent takers finally see that there will be nothing left to help them, S.S. & Medicare bankrupt, our Military unfunded and weakened?

  14. Pray tell! Where is all the money coming from for all these jobs? From OUR MONEY of course! How on earth did we allow this to happen to our country? I hope that the dumb bells (mostly congress and all Democrats and some Republicans) who voted for the president pay the price. Anyone who can't do better for America should be sent home. Too bad that the average American can't get a full pay check after they retire (for life), like congress. They all should be kicked out of town and sent to where they came from. Time to give them two times in DC and then kicked out of town. Let's get rid of the President? first.

  15. Seymour Kleerly says:

    Dumb!

  16. Seymour Kleerly says:

    I felt that way when Bush invaded Iraq and dithered in Afganistan.

  17. way to go boner boehner and McConnell sold us out again damn sure won't be voting for you 2 next time

  18. Ha attractive rates my foot. I pay for flood insurance only because I am force to by my mortgage lender, who is force to by the federal government. My normal house insurance is approximately 1200.00…..my flood insurance is an additional 1400.00 this year…. hardly attractive.