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.