Let's suppose I have a credit card. I have a $10,000 limit on my credit card. Now, I make a minimum payment each month, which is a small fraction of what I have charged. However, month after month, the amount I am carrying on the credit card is rising until it finally hits my $10,000 limit. Now, if I try to charge anything else on that card, it will be refused. Have I defaulted on my credit card? Have I defaulted on all my bills unless I can somehow convince the credit card company to raise my limit? No, obviously not. I just can't continue to spend beyond my means any longer.
That is the same situation of the Federal Government. The credit card limit has been reached. It doesn't mean the country is defaulting on its debts. It can still pay the minimum payment but charging beyond income must be curtailed. However, President Obama is demanding the credit card company (in this case, the Congress) raise the spending limit. Regardless of any current bluster, the Congress will do exactly that in return for nothing. But it should not be viewed as 'responsible' to raise the Debt Ceiling.
Let's go back to the credit card example. Let us suppose that I have an income $24,675 a year. I spend $35,405 a year. My credit card balance is currently $165,000. Moreover, I have promised to pay $1,222,670 to friends and neighbors who have given me money over the years to invest for their retirement. Luckily, I just got a raise of $600 a year. Am I in a good financial position? Take those same numbers and multiply by 100 million and you have the current position of the government. The $600 raise is the tax hike from the Fiscal Cliff, which should give some indication that overspending is the problem.
These numbers aren't secret. Anyone who cares to know can look them up. President Obama didn't just pass a massive new entitlement so he could turn around and slash spending to meet income. He will push the debt for the next four years and let the next president clean up the mess.
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