Today I am pondering why the populace has such a hard time with debt and deficit explanations from our leaders. They seem to use the terms interchangeably and confuse the two. If I borrow money to buy a house I am in debt but as long as I can afford the debt service it is not a bad thing. People get into debt all the time. people get out of debt all the time. The classic debt situation is unsecured debt from a credit card which you then spend on things you don't need and can't afford. The credit card bill comes due and you can't pay for your extravagance so you just pay the interest or the minimum payment. You have just done deficit spending. Many people got into this situation during the days of easy credit. With a good credit history it was easy to obtain credit lines that were more than you could afford. As long as you paid the bill you were OK but it was tempting to buy that extra bauble or eat out that one extra time and incur the extra debt. As the spending got out of hand you got deeper in debt (by the deficit spending) and now you are only able to pay the minimums. For awhile you are able to get a newer credit card at a lower interest rate and stay ahead of the debt. Then you tap the equity in your house for additional credit to stay ahead of the spending and keep the bills paid. The equity line is tapped out, your credit cards are maxxed, what do you do? Any financial advisor will tell you to STOP THE SPENDING, make a budget for spending what you make, pay off the highest interest rate card first and then pay down all the credit cards until you are out of debt. What you don't do is go to the bank and ask them to increase your credit limit and they wouldn't do it anyway since you have been so irresponsible with you deficit spending.
Yesterday, that is exactly what President Obama did. He told the bankers (us and our representatives in Congress) that we MUST increase the credit line of our credit cards because we spent too much and oh by the way we can't stop our spending because it would be too hard. he has singlehandedly increased the debt by $6Trillion dollars but we can't stop spending. We can't even slow the growth of spending. using budget gimmicks he tries to tell us that he really did try to cut spending but those mean ole republicans blocked his every move and wouldn't let him.
I am calling BS on this one. The debt is $16T because we spent TOO MUCH. The only way we increase the credit card limit is if he can convince us that he is serious about controlling spending. Until then default. And none of this crap about SS checks being late and not paying the military. If we stop cutting checks due to default the first ones cut should be the White House staff including the President, then the Cabinet and their staffs, then the Congress and their staffs.
Remember it is our money he is spending.
Yesterday, that is exactly what President Obama did. He told the bankers (us and our representatives in Congress) that we MUST increase the credit line of our credit cards because we spent too much and oh by the way we can't stop our spending because it would be too hard. he has singlehandedly increased the debt by $6Trillion dollars but we can't stop spending. We can't even slow the growth of spending. using budget gimmicks he tries to tell us that he really did try to cut spending but those mean ole republicans blocked his every move and wouldn't let him.
I am calling BS on this one. The debt is $16T because we spent TOO MUCH. The only way we increase the credit card limit is if he can convince us that he is serious about controlling spending. Until then default. And none of this crap about SS checks being late and not paying the military. If we stop cutting checks due to default the first ones cut should be the White House staff including the President, then the Cabinet and their staffs, then the Congress and their staffs.
Remember it is our money he is spending.
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