Professor Obama explains high finance

[Clocker]

According to the Accountant in Chief, raising the debt ceiling does not increase the debt.
Now, this debt ceiling -- I just want to remind people in case you haven’t been keeping up -- raising the debt ceiling, which has been done over a hundred times, does not increase our debt; it does not somehow promote profligacy. All it does is it says you got to pay the bills that you’ve already racked up, Congress. It’s a basic function of making sure that the full faith and credit of the United States is preserved.

Speech text. (http://www.whitehouse.gov/the-press-office/2013/09/18/remarks-president-business-roundtable)

Raising the debt ceiling does indeed "...somehow promote profligacy..." in the same way that giving your teenager a credit card promotes profligacy. Both the teenager and the president are absolutely irresponsible when it comes to spending other peoples money.

And raising the debt ceiling does not mean paying the bills you have already racked up, it means passing those bills on to future generations. Raising the debt ceiling is a circular death spiral if the spending problem is not addressed. More and more money is needed to pay the debt and the interest on the debt. This process is blatantly obvious when an individual does it with credit cards, but the president thinks that somehow it is different when he does it. The solution for the individual is also blatantly obvious, reduce spending and pay off the debt. Again, the concept baffles the president in the context of the government.

[Tom]

Don't you just love how he talks down to everyone, like some kind of elitist?
How does he explain HIS condemnation of it when he called it alack of leadership when Bush did it?

Just in case he hasn't been keeping up.

[PaceAdvantage]

Don't you just love how he talks down to everyone, like some kind of elitist?Talks down and butchers the English language at the same time...rare talent... :lol:

[mostpost]

According to the Accountant in Chief, raising the debt ceiling does not increase the debt.


Speech text. (http://www.whitehouse.gov/the-press-office/2013/09/18/remarks-president-business-roundtable)

Raising the debt ceiling does indeed "...somehow promote profligacy..." in the same way that giving your teenager a credit card promotes profligacy. Both the teenager and the president are absolutely irresponsible when it comes to spending other peoples money.

And raising the debt ceiling does not mean paying the bills you have already racked up, it means passing those bills on to future generations. Raising the debt ceiling is a circular death spiral if the spending problem is not addressed. More and more money is needed to pay the debt and the interest on the debt. This process is blatantly obvious when an individual does it with credit cards, but the president thinks that somehow it is different when he does it. The solution for the individual is also blatantly obvious, reduce spending and pay off the debt. Again, the concept baffles the president in the context of the government.
Obama is correct. Raising the debt ceiling does not increase the debt. It cost nothing to raise the debt ceiling. Raising the debt ceiling allows us to increase the debt; but of itself it has no effect.

On the other hand, not raising the debt ceiling does increase the debt. Not raising the debt ceiling, causes us to default on some of our obligations. Defaulting on our obligations could cause a downgrade of our bond rating. That downgrade would mean it will cost more to borrow money.

By the way, a kid with a credit card is not the same as a government, just as the finances of the government are very different from the finances of your family. Believing they are the same is a fool's errand.

[Greyfox]

By the way, a kid with a credit card is not the same as a government, just as the finances of the government are very different from the finances of your family. Believing they are the same is a fool's errand.

True.
The kid can't 1. print money and 2. increase taxes
But sooner or later, the money will be devalued vis a vis world currencies and the debt owing will increase.
Then how much of a fool's errand was that comparison?
If obligations cannot be met without raising the debt ceiling, it's pretty clear that the Government is spending more than it is bringing in.
It doesn't work in your home and it ultimately will not work with a Nation.
Someday the piper will have to be paid, or America will dance to the piper's tune.

[LottaKash]

Obama is correct............ By the way, a kid with a credit card is not the same as a government,


Thx for the lift.......:lol:

[Tom]

Originally Posted by mostpost
Obama is correct............ By the way, a kid with a credit card is not the same as a government,


The kid is more responsible.

[Clocker]

The kid is more responsible.



The kid has adult supervision. Obama does not.

[Clocker]

the finances of the government are very different from the finances of your family. Believing they are the same is a fool's errand.

They are different, because the government has no short term accountability, and generally no short term consequences for irresponsibility. They are different because the family is limited by its income and credit. The government is unlimited in the short run because of its ability to tax, borrow, and inflate its currency. They are different because the family must bear the consequences of its irresponsibility, while the government can shift that burden to its tax payers and to future generations. They are different because the family bears the burden of its decisions, while the country bears the burden of its government's decisions.

Believing they are different in the long run is a fool's myth, propagated by tax and spend politicians and their tame economists, ranging from John Maynard Keynes to Paul Krugman. They are no different in the long run because fiscal responsibility increases the wealth of families and countries, while irresponsibility destroys wealth.

[Clocker]

the finances of the government are very different from the finances of your family.

Please explain the difference for those of us not so enlightened.

[DJofSD]

Please explain the difference for those of us not so enlightened.
Simple.

You can not "print" money. You can not tax.

[Clocker]

Raising the debt ceiling allows us to increase the debt; but of itself it has no effect.

Right, and giving a carload of teenagers a case of beer of itself has no effect. :cool:

[fast4522]

"Professor Obama explains high finance"

My wife says he does not talk at all, he shouts what he reads from the teleprompter as if the election is next week. Myself I am fast with the remote, even big pharma drug commercials that include warnings about blurry vision, death, suicidal thoughts or a four hour erection are more interesting than he is.
Seriously speaking, it is the road we are on that is the funk we are in. Mitt Romney, Donald Trump, Steve Forbes or a number of others could navigate this country better than it is being handled now.

[Clocker]

My wife says he does not talk at all, he shouts what he reads from the teleprompter as if the election is next week.

When you are talking to ignorant peasants, especially if there is a language difference, it helps them understand if you speak loudly.

[badcompany]

Actually, it's like requesting an increase on your credit card line. It's not debt until you tap the increase. So, technically he's correct, but it's insulting that he would make that point as we all know there will eventually be more spending.

[jerry-g]

He picked up the "loud mouth" trait from that Washington professor that
shot his mouth off so loudly when the police tried to arrest him. Obama
invited him and the policeman to the Whiteout lawn for a beer to have
a discussion about it. I think he identified with the loud mouth. That was
Obama's idea of meeting with dignitaries.

[fast4522]

House GOP already planning for next Obamacare fight

http://www.cnn.com/2013/09/20/politics/debt-ceiling-republicans/index.html?hpt=po_c1

[Mike at A+]

So, technically he's correct, but it's insulting that he would make that point as we all know there will eventually be more spending.
Or as Columbo would say: "There are a few loose ends here I don't understand. If this increase in the debt limit won't result in more spending, why is 0bama going to shut down the government if he doesn't get this increase"?

[DJofSD]

Or as Columbo would say: "There are a few loose ends here I don't understand. If this increase in the debt limit won't result in more spending, why is 0bama going to shut down the government if he doesn't get this increase"?
Don't worry about it. Trying to understand the logic of a crazy person will only make you crazy.

[Tom]

Hey Obama, it's the SPENDING, STUPID!

This guy's lack of class is amazing.
He runs around the country whining and finger pointing and blaming everyone except himself...like a 10 year old brought up bad. The man is a juvenile cry-baby. And spending tax dollars on his Whine and Roses Tours.

Get your ass back in DC and sit down with the house and do your frigging job, you loser!

How can you have any respect for this trash??

[Robert Goren]

If the government shuts down the House republicans will be blamed. No amount of damage control and trying to deflect it on Obama is going to play with anybody the die hard Obama haters. Even our local tea party house member said so and vote against the bill. In a district that has been held by the GOP since 1966, he is smart enough to know that even this district he could lose to democrat if the government shuts down. Few depend more on the Federal government than farmers and everybody depends on the farmers this district. He also knows that the Koch brothers and company will spends 10s of millions in the primary to beat because of his vote(s). He decided to take his chances in the primary. As a 4 term congressman, he has very conservative, pro-ag record to run on.

[Tom]

Of course the repubs will be blammed.
Most Americans are stupid and lazy - at least 47% of them - and buy the BS the news feeds them. And we know the news is part of Team Obama. Kandy-ass Krowely is the CEO of the Cheer leading squad.

But this not about politics, it is about responsible government. With a 17 trillion debt and growing, Obama has a choice here - stop the spending, cut more of it, and shut his mouth.

The repubs may take the heat, but they are 100% correct is this fight.
The dems have pretty much killed this country, and are now planning the funeral.

Those who voted for Obama deserved to suffer. I hope is it financially a death blow to many of them. Good riddance to ignorance. nO-Care will finish off the rest of them.

[Robert Goren]

Of course the repubs will be blammed.
Most Americans are stupid and lazy - at least 47% of them - and buy the BS the news feeds them. And we know the news is part of Team Obama. Kandy-ass Krowely is the CEO of the Cheer leading squad.

But this not about politics, it is about responsible government. With a 17 trillion debt and growing, Obama has a choice here - stop the spending, cut more of it, and shut his mouth.

The repubs may take the heat, but they are 100% correct is this fight.
The dems have pretty much killed this country, and are now planning the funeral.

Those who voted for Obama deserved to suffer. I hope is it financially a death blow to many of them. Good riddance to ignorance. nO-Care will finish off the rest of them.At least 47% of the country has no idea who Candy Crowley is. Nor do they care. Only the right wing cares about her and what she says or doesn't say.

[JustRalph]

Over the last 30 yrs there have been exactly two seats lost due to government shutdowns.......... it's really not an election turner...........

[DJofSD]

Fine, blame Congress and specifically, the House.

They're doing their f'ng job!!! If the administration just wants to have that third of the government rubber stamp everything then why do we have elections and have those officials in office? Why not let them run the government the way the process was designed? Or are we just that much smarter now, 250 years later?

[johnhannibalsmith]

The only thing about the debt ceiling "fight" that Obama, the Dems, and the Repubs really care about is that it isn't a fight over Syria or the NSA. Everyone, please, please turn off the Ali fight to get another dose of Hulkamania.

[Clocker]

This guy's lack of class is amazing.
He runs around the country whining and finger pointing and blaming everyone except himself...like a 10 year old brought up bad. The man is a juvenile cry-baby. And spending tax dollars on his Whine and Roses Tours.

Get your ass back in DC and sit down with the house and do your frigging job, you loser!

You just hate Obama because he is eloquent and nonpartisan. Nancy Pelosi said so, so it must be true.

Throughout a 50-minute interview on Thursday in her second-floor Capitol office, where the late Speaker Tip O’Neill used to receive supplicants, Pelosi was sharply derisive about the scorn Republicans have for this president.

“You know why it is,” she said. “You know why it is. He’s brilliant, … he thinks in a strategic way in how to get something done … and he’s completely eloquent. That’s a package that they don’t like.”…

Then she added a line that she has used before, that drives Republicans batty: “He has been … open, practically apolitical, certainly nonpartisan, in terms of welcoming every idea and solution. I think that’s one of the reasons the Republicans want to take him down politically, because they know he is a nonpartisan president, and that’s something very hard for them to cope with.”




Source (http://hotair.com/archives/2013/09/20/pelosi-lets-face-it-republicans-hate-obama-because-hes-eloquent-and-nonpartisan/)

[OntheRail]

You just hate Obama because he is eloquent and nonpartisan. Nancy Pelosi said so, so it must be true.






Source (http://hotair.com/archives/2013/09/20/pelosi-lets-face-it-republicans-hate-obama-because-hes-eloquent-and-nonpartisan/)


[/indent]

That woman is the southern view of a northbound mule.

[DJofSD]

That woman is the southern view of a northbound mule.
For some reason, that reminds me of the Alex Karras line "Mongo is just a pawn in the game of life."

Yes, no, yes, no, .... as his steed walks away.

[fast4522]

Tune time, this ones for "Goren"

http://www.youtube.com/watch?v=vmBxNnap05M

[Mike at A+]

Did someone say Nancy Pelosi??

TRICK OR TREAT ...

[Tom]

To people like Nancy Pelosi, people like Obama are eloquent.
Even trash has levels.

[fast4522]

Did not know monkeys liked the water.

[DJofSD]

Doesn't look like it's the water that monkey is interested in.