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Line 343: − − == Debt Ceiling 2011 Controversy == − − [[Barack Obama]] voted against raising the debt ceiling in 2006. Now, he wants to raise the debt ceiling to over twice what it was raised to in 2006. However, Obama may not get the debt ceiling increased by Congress who essentially deem the Obama administration to be a serious credit risk. This is similar to a credit card company telling a person with either no income or little income who has maxed out on his credit card that he won't get a line increase and must pay off his card lest he be sued. In fact, it is almost unheard of for a credit card company to give a credit line increase to someone who's maxed out on his credit card. − − The last increase in the debt ceiling occurred in early 2010 and President Obama signed it into law on February 12, 2010. The limit stood at $14,294 billion. With large deficits emerging as [[baby boom]]ers retire, some members of Congress expressed concern over the government's dependence on borrowing to meet its obligations. President Obama responded by creating the National Commission on Fiscal Responsibility and Reform (Simpson-Bowles Deficit Reduction Commission), charged with identifying “policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run.”<ref>Congressional Research Service, pp. 24-25 pdf.</ref> President Obama promptly ignored the Commission's recommendations.<ref>http://www.realclearpolitics.com/2011/06/23/cbo_quotwe_don039t_estimate_speechesquot_258038.html</ref> − − Obama's failure to take personal responsibility and instead his resorting to blaming others is a typical liberal victimhood mindset. − − The prospect of the Obama administration defaulting on its debt rose greatly when the Democrats insisted on raising taxes to cover for their irresponsible spending habits. Obama refuses to engage in negotiations, similar to a deadbeat who refuses to answer the phone when the creditors are calling. Unfortunately, for the world, Obama's personal irresponsibility will hurt many honest hard working people who have done nothing wrong.
img '''''The unsustainable path of spending increases of the Pelosi-Reid and Obama era
[[File:Federal Debt graphic PD WC.jpg|thumb|280px|Components of Federal Debt As Percentage of GDP FY1980-FY2007]]
[[File:Spending increase of the Pelosi-Reid and Obama era.JPG|thumb|380px|'''''The unsustainable path of spending increases of the [[110th United States Congress|Pelosi-Reid]] and [[Obama]] era.''''' Source:Federal Reserve Board]]
The '''Federal Debt Limit''', commonly known as the '''debt ceiling''' is the overall limit on federal government borrowing, as authorized by [[Congress]]. It is similar to an individual's credit card limit.
The '''Federal Debt Limit''', commonly known as the '''debt ceiling''' is the overall limit on federal government borrowing, as authorized by [[Congress]]. It is similar to an individual's credit card limit.
== Components of the Debt ==
== Components of the Debt ==
[[File:Federal Debt graphic PD WC.jpg|thumb|280px|Components of Federal Debt As Percentage of GDP FY1980-FY2007]]
There are two components to the Federal Debt, the debt held by the public, and intragovernmental debt. The debt held by the public is debt held by any individual or entity that is not the federal government such as a mutual fund, individual investor, foreign government, or a municipal government <ref>http://www.concordcoalition.org/issue-briefs/2011/0708/understanding-federal-debt-limit</ref>. Intragovernmental debt is debt the government owes itself such as the Social Security Trust Funds, the Medicare Hospital Insurance Trust Fund, and the Civil Service Retirement and Disability Fund <ref>http://www.concordcoalition.org/issue-briefs/2011/0708/understanding-federal-debt-limit</ref>. Currently Debt held by the public is roughly 2/3 of the total Federal Debt.
There are two components to the Federal Debt, the debt held by the public, and intragovernmental debt. The debt held by the public is debt held by any individual or entity that is not the federal government such as a mutual fund, individual investor, foreign government, or a municipal government <ref>http://www.concordcoalition.org/issue-briefs/2011/0708/understanding-federal-debt-limit</ref>. Intragovernmental debt is debt the government owes itself such as the Social Security Trust Funds, the Medicare Hospital Insurance Trust Fund, and the Civil Service Retirement and Disability Fund <ref>http://www.concordcoalition.org/issue-briefs/2011/0708/understanding-federal-debt-limit</ref>. Currently Debt held by the public is roughly 2/3 of the total Federal Debt.
== Debt Ceiling 2011 Controversy ==
[[Barack Obama]] voted against raising the debt ceiling in 2006. Now, he wants to raise the debt ceiling to over twice what it was raised to in 2006. However, Obama may not get the debt ceiling increased by Congress who essentially deem the Obama administration to be a serious credit risk. This is similar to a credit card company telling a person with either no income or little income who has maxed out on his credit card that he won't get a line increase and must pay off his card lest he be sued. In fact, it is almost unheard of for a credit card company to give a credit line increase to someone who's maxed out on his credit card.
The last increase in the debt ceiling occurred in early 2010 and President Obama signed it into law on February 12, 2010. The limit stood at $14,294 billion. With large deficits emerging as [[baby boom]]ers retire, some members of Congress expressed concern over the government's dependence on borrowing to meet its obligations. President Obama responded by creating the National Commission on Fiscal Responsibility and Reform (Simpson-Bowles Deficit Reduction Commission), charged with identifying “policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run.”<ref>Congressional Research Service, pp. 24-25 pdf.</ref> President Obama promptly ignored the Commission's recommendations.<ref>http://www.realclearpolitics.com/2011/06/23/cbo_quotwe_don039t_estimate_speechesquot_258038.html</ref>
Obama's failure to take personal responsibility and instead his resorting to blaming others is a typical liberal victimhood mindset.
The prospect of the Obama administration defaulting on its debt rose greatly when the Democrats insisted on raising taxes to cover for their irresponsible spending habits. Obama refuses to engage in negotiations, similar to a deadbeat who refuses to answer the phone when the creditors are calling. Unfortunately, for the world, Obama's personal irresponsibility will hurt many honest hard working people who have done nothing wrong.
== History of the "Debt Limit" ==
== History of the "Debt Limit" ==
| [[Woodrow Wilson]]
| [[Woodrow Wilson]]
|}<ref>http://usgovinfo.about.com/od/federalbudgetprocess/a/US-Debt-Ceiling-History.htm</ref>
|}<ref>http://usgovinfo.about.com/od/federalbudgetprocess/a/US-Debt-Ceiling-History.htm</ref>
== External links ==
== External links ==