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DEBT CEILING AND THE TEA PARTY.

Updated on July 16, 2011

They misunderstood.

If anyone misunderstood the debt ceiling issue being discussed in Washington D.C. presently, it would be the Republican presidential candidate Michele Bachmann, who did not want the debt ceiling to be raised, no matter what; however, she has a hidden agenda to stop it from happening. Coming very close to her would be the Tea Party people, who were just gullible.

First, they have been made to know what "government spending" was, that it comprised of the overall budget of government expenditure covering from the vast military expenses that the country required for protection all the way through to Medicaid, which supported the poor and the needy.

In between were a myriad of programs that have been put in place, from time immemorial, to support the smooth running of the government; consisting of activities meant for the survival of all citizens, and without which, there would be no country, in the right sense of the word.

Now, they have also been made to know that the raising of the debt ceiling was a monetary device that allowed any government to have ample resources to meet its fiscal responsibility in an adequate manner to avoid financial overburden.

It was used in emergency situations, as it was applied on several occasions during the Bush era, when the 9/11 attacks took place, sparking off two wars, in Iraq and Afghanistan, simultaneously.

To use the private economic sector for example, when a company needed start up money, it would borrow from any number of financial institutions and used the proceeds to cover its capital expenditure. Then the company's return on its investments, which was its profits, would be used to pay off any outstanding debts.

In the present financial situation of the United States Government, the general analysis by so many economists was that, if the debt ceiling was not raised, it (government) would be in default against its internal and external obligations.

If that became a reality, there would be such an enormous upheaval that could cause a setback for the fragile economy that the nation was experiencing right now, bringing with it difficult times for every single American.

Besides, there would be physical, financial chaos, as the country has never seen before. It would not be able to come out of the fiscal doldrums of the past, created by the same reasons given above (9/11 & two wars).

The Republican Party leadership was aware of the big picture; and that it would bear no goodwill to the American economy; as there would be hardships for the business sector, and Wall Street in particular, to grapple with, and thus creating an economic "Armageddon"; which would bring about so many difficulties for millions of individuals, who were already fighting to make ends meet.

High interest rates would be the order of the day, bringing in its train a new increase in the cost of living; and unemployment would even soar to unpredictable heights.

The outcome would be pretty awful economically for everyone; but the answer to it would be what President Barack Obama has been emphasizing all along, that taxes must be raised on those who have benefited from the economy in the past, on one hand; and he was even ready to skew on some entitlement programs, like Medicare and Social Security, on the other hand, in order to get the Republicans to come to an agreement or a compromise on the debt ceiling.

The Tea Party came about on government spending, which they thought was lavish and extravagant; and all America's financial problems have developed from the irrational way the government has handled its finances. However, there was no evidence of that accusation on the part of the Obama administration. None whatsoever.

Therefore, the raising of the debt ceiling was for a good cause; if so, why should the Tea Party hold it as hostage against the president and prevent him from doing what was right for the country? After all it was his duty to do just that; the RIGHT thing.

As for Michele Bachmann, she was opposed to the raising of the debt ceiling; and for a very sinister reason at that too. It was her idea to use the Tea Party, which was also opposed to the issue, only for her own political gains, and nothing else.

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      Howard Schneider 

      7 years ago from Parsippany, New Jersey

      Excellent analysis. The Tea Party has been hijacked for political reasons. They are holding this country hostage and it is a crime. Default will be catastrophic for this country. Eric Cantor wants the Speakership and Michelle Bachmann wants the Republican Presidential nomination. This is their way to get it and damn the country. It is disgusting and unpatriotic.

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