DeMint Calls For 'Big Showdown' On Debt Ceiling

[Ares]

Sen. Jim DeMint (R-SC) tells Human Events the next big fight in Congress will be over spending, and called for a 'big showdown' over raising the country's debt ceiling.

"We need to have a showdown at this point that we are not going to increase our debt ceiling anymore," he said. "We are going to cut things necessary to stay within the current levels, which is over $14 trillion. This needs to be a big showdown."

On Meet The Press yesterday, South Carolina's other Senator, Lindsey Graham, said he would not vote to raise the debt ceiling "until I see a plan in place that will deal with our long-term debt obligations, starting with Social Security." He demanded cuts in discretionary spending to bring it back down to 2008 levels.

DeMint, who Human Events recently named their "Conservative of the Year," also called for a balanced budget amendment to "force us to make the hard decisions."

http://www.youtube.com/watch?v=c3UmN6os0Cc

http://tpmdc.talkingpointsmemo.com/2011/01/demint-calls-for-big-showdown-on-debt-ceiling-video.php

[Book]

Lindsey Graham, said he would not vote to raise the debt ceiling "until I see a plan in place that will deal with our long-term debt obligations, starting with Social Security." He demanded cuts in discretionary spending to bring it back down to 2008 levels.



Let's first audit the FED and see WHO we allegedly "owe" all this money to.

:oo-->

[Ares]

Let's first audit the FED and see WHO we allegedly "owe" all this money to.

Now Book, you know us peasants aren't allowed to see inside the granite halls of the Federal Reserve. Shame on you. :sarc:

[Sparky]

I'm really looking forward to this circus.

It will be interesting to see who supports destruction of the economy and who supports destruction of the Dollar. I'm sure that destruction of the Dollar will win this round, but it should make for great theater. Based on the current rate of spending, a decision will have to be made some time in March.

[Ares]

I'm really looking forward to this circus.

It will be interesting to see who supports destruction of the economy and who supports destruction of the Dollar. I'm sure that destruction of the Dollar will win this round, but it should make for great theater. Based on the current rate of spending, a decision will have to be made some time in March.


Current spending says sometime in February. ZH had an article saying that the year ended 164 billion higher than expected.

[MNeagle]

It will be interesting to see who supports destruction of the economy and who supports destruction of the Dollar. I'm sure that destruction of the Dollar will win this round, but it should make for great theater. Based on the current rate of spending, a decision will have to be made some time in March.


Perhaps I'm dense, but aren't they one & the same??

[madfranks]

It will be interesting to see who supports destruction of the economy and who supports destruction of the Dollar. I'm sure that destruction of the Dollar will win this round, but it should make for great theater. Based on the current rate of spending, a decision will have to be made some time in March.


Perhaps I'm dense, but aren't they one & the same??


If they raise the debt ceiling and keep spending hundreds of billions to trillions of dollars we don't have, the dollar will continue it's collapse and the "recovery" will continue. If they don't raise the debt ceiling and stop spending money, this strengthens the currency but causes the economy to slow down.

[gunDriller]

It will be interesting to see who supports destruction of the economy and who supports destruction of the Dollar. I'm sure that destruction of the Dollar will win this round, but it should make for great theater. Based on the current rate of spending, a decision will have to be made some time in March.


Perhaps I'm dense, but aren't they one & the same??


If they raise the debt ceiling and keep spending hundreds of billions to trillions of dollars we don't have, the dollar will continue it's collapse and the "recovery" will continue. If they don't raise the debt ceiling and stop spending money, this strengthens the currency but causes the economy to slow down.


i'm 99% sure they will raise the debt ceiling.

it would be interesting to see what happens to PM prices if they don't raise the debt ceiling. buying opportunity ?

[MNeagle]

It will be interesting to see who supports destruction of the economy and who supports destruction of the Dollar. I'm sure that destruction of the Dollar will win this round, but it should make for great theater. Based on the current rate of spending, a decision will have to be made some time in March.


Perhaps I'm dense, but aren't they one & the same??


If they raise the debt ceiling and keep spending hundreds of billions to trillions of dollars we don't have, the dollar will continue it's collapse and the "recovery" will continue. If they don't raise the debt ceiling and stop spending money, this strengthens the currency but causes the economy to slow down.


I'll admit it then, I don't get it. To me it's all smoke & mirrors. Either way, we're crashing & burning. It's only a matter of time.

[Silver Shield]

This is all an act.

They will raise the debt ceiling because debt must increase every year or the game is completely over.

They will kick the can.

[Sparky]

84 days remaining to resolve this.

I think the only unknown is the amount by which they will raise it, since this is such a political hot potato. Can they raise it enough to get them past the November 2012 elections?

Here's the recent history of the debt ceiling changes.

Months Increment Months since last raised
March 2011 ???? 13
February 2010 $1,900B 3
December 2009 290B 10
February 2009 789B 5
October 2008 700B 4
June 2008 800B 9
September 2007 850B 18
March 2006 781B 16

In order to raise it sufficiently to get them past the presidential election, they would need to raise it by somewhere between $2.5T and $3T. I think that will come across as too alarmingly high politically. Rather than do that, I predict they will raise it enough to get them into early 2012 at which time they will take another vote, and then let the issue sleep until after the election season. I'm going to guess somewhere near $1.5T.

At the current monthly debt accumulation rate of $140B, the absurdity of the situation is going to be exposed no matter what they do. That's the beauty of watching this drama unfold. If the republicans agree to some modest raise of, say $500B, it will only buy them about 4 months, and I'm sure they don't want to be going through this every 4 months. This will be interesting to watch if you like to see politicians squirm.

[Cobalt]

Sure wish I could just write in a few more zeros in my checkbook

[mick silver]

book book book what wrong with you

[Sparky]

Only 57 days left, and counting. I haven't seen much progress yet. Tick, tick, tick...