6 dangerous myths about the debt ceiling

Here some of the popular misconceptions making the rounds as the US edges closer to a potential default.

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VIDEO ON MSN MONEY

315Comments
Oct 15, 2013 7:11PM
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Obamma and the democrats are no different than the people who found out they had no limit on their food stamp cards last weekend
Oct 15, 2013 7:34PM
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The government takes in 240 billion dollars every month and the interest on the debt is 18 billion dollars......the only problem are the politicians making it a issue.

 

I'm getting tired of paying taxes for this bullsh*t.

Oct 15, 2013 9:14PM
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The Tea Party Patriots' mission is to restore America's founding principles of Fiscal Responsibility, Constitutionally Limited Government and Free Markets
Oct 15, 2013 8:46PM
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Let me get this straight, the debt is now $17 Trillion and we want to take it to $18 Trillion this year and to over $20 Trillion by the time this narcissist leaves office?  Hmm......guess he's trying to fulfill the Dreams of his Father......i.e. taking down the U.S. a notch or two........and you dimwitted liberals can't even see what's happening.......the dumbing down of America continues.......
Oct 15, 2013 7:13PM
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Another shinning example of "nonpartisan" liberal journalism.
Oct 15, 2013 7:15PM
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49 million Americans on food stamps........if this was the 1930's people in every town and city would be lining the streets for soup.......food stamps mask the problem Obama and the Democrats have created....wake up people
Oct 15, 2013 8:19PM
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 I Think Schoen is incorrect in some of his thinking.  Cutting of Social Security payments is prohibited by law as it is self funding.  Diverting the money to pay bills is not supposed to happen.  If it does, there is going to be a huge market glut of lawyers having impeach proceedings against them.  And, likely  swelling of the unemployment by a few hundred unemployable congressmen/women.

Oct 16, 2013 5:58AM
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Reagan, Bush, Obama.  Democrat or Republican. Liberal or conservative - why does that matter?  Who cares?  It is time to draw a line in the sand and say no more.  Blame, blame, blame - who's fault?  That drives me crazy - people that play the blame game are useless.  Placing blame and assigning fault don't solve anything - in fact, they are just exercises to keep from doing anything.  Finding fault and assigning blame are the opposite of demonstrating leadership and responsibility. 

 

Just no more borrowing!  Raise taxes, cut spending, sell assets, I don't care, just get off the debt spiral.  I understand deficit spending during economic downturns, but there is never an upturn to pay it back! 

 

The only way to control spending is to stop all borrowing and raise taxes across the board to pay for government.  As long as we borrow a large portion of the cost of running the government, no one feels the pain.  Party, philosophy, and socioeconomic standing do not matter.  The resulting pain is the only way we will get to the point of finding the essential role of government in today's world, and a fair, sane way to pay for it. 

 

Hey, if we default, that may be the best thing in the long run.  Maybe people will stop buying US debt and we will be forced to get our house in order.  All the scare scenarios have been terribly short sighted - what will happen next week, next month, ...  If we don't default or otherwise limit / reduce our debt, what is the scenario in the long term?  We are already at the point that our options are very limited: 1) default on our debt; 2) hyper-inflate our way out of debt; 3) default on our social contracts; 4) large scale wealth confiscation.  In reality, the path we travel will likely be a combination of the above.

Oct 16, 2013 1:57AM
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Seriously dave, you need to stop drinking all that liberal kool aide.

While your post was poorly stated, it was also ill informed.

The dems have had the keys since 2006 when we began the slide.

Barney Frank can take a huge portion of the blame as he did nothing to stop the

housing crisis which is at the crux of the economic disaster that befell us.

It is simply factual that everyone does not need to own a home. People have shown clearly

that fat slovenly food stamp laden people cannot and will not be responsible.  Feeding at the government teat has been the dem policy in order to gain power as long as records have been kept.

The tea party was the single positive response to all of it.

Taxed enough already. Tea.

 

Oct 16, 2013 12:46AM
Oct 15, 2013 7:05PM
Oct 16, 2013 2:10AM
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This article is wrong in just about every so called myth. Misquoting the treasury. Purposefully misunderstanding the 14th amendment. Not understanding how sequestration reduces spending and the deficit. The author should change his profession and find something more suitable, perhaps snake oil sales. Pure mindless propaganda to support fear thru viral ignorance.
Oct 15, 2013 10:15PM
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It is political suicide for the Democrats to start cuts that will make the US live within its taxes. 

But next year when the layoffs start when the war winds down its going to happen anyway. 

Ford tried to fix the after Vietnam recession and nothing worked.  So Americans wanting their bennies voted in Carter.  Carter did nothing except give us a soon nuclear iran.

Weather you like it or not Ronald Rayguns pulled the economy outa the crapper. In 2 and one half years.  Remind me how long has Obama been in office?

Quit blaming this on bush.  Obama is worse. 

At the start of the bush administration the national debt was 5.6 trillion, bush added 5 trillion, and at the end of his term the national debt was 10.6  trillion.  So far Obama has added 6.3 trillion, and in two years with the extra payments for AHC plus the 1.3 trillion he govt already overspends, 22 trillion.

Sorry the Democrats are worse. Course the are pushing off businesses paying their fair share of AHC as the businesses to cover the additional costs will raise prices. 

The Democrats have been slick, however, next year starts the cutbacks.  Army to 250,000 from 1million.  Cuts in defense spending, which needs to be done, however, that causes job loss from defense contractors.  We are in for a mess.  

go ahead libs call me a crazy, racist, bigot cause you cant tell me why I am wrong.  But call me next April.  That's the start.  And we are all going to be in trouble.

 

Oct 15, 2013 8:08PM
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Oh yeah, the trillion dollar coin....up there with the trillion dollar bills printed in Zimbabwe by that very old tyrant who runs the hell hole.  It used to have a different name.  Rhodesia? 
Oct 15, 2013 7:04PM
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  ...the last time Congress pulled this stunt in July 2011."  "Stunt"?!  I didn't notice a massive  slow down in bankrupting spending between 7/2011 and 7/2013.  Did I miss it?  What part of "bankruptcy" don't the dims grasp?   Heading off bankruptcy is not a "stunt."
Oct 16, 2013 8:41AM
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THE BIGGEST MYTH / LIE OF ALL : HOPE & CHANGE !

 

All we want is some certainty & consistency. Is that too much to ask ?

Oct 15, 2013 10:54PM
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It's true that freezing debt wouldn't do much to corral spending.  What it does is keep us from spiraling further out of control.  How much does it take before the rest of the world says no more borrowing?  Already our debt is almost a third of the global GDP (minus the US).  If our debt increases faster than global GDP growth, at some point there won't be enough investors that can be up all of the junk bills.  Nor will the US be able to pay back the debt.  By 2020 at the rate we are borrowing, the interest on debt will reach $1 Trillion, almost equal to both Social Security and Medicare combined.  Interest on debt is what people are worried about when it comes to defaulting.  So, unless the government can figure out how to bleed more taxes out of everyone, we will never pay down debt.  Sobering thought.  Even if we paid 100% of our income in taxes, we won't pay down debt.  The best it would do is prevent us from borrowing more.
Oct 15, 2013 8:54PM
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why i brought that up the world war is that russia and china learned that paying out money to build a better defense takes to much money and paying out money to other countries like nato they should spend for their own defenses.
Oct 16, 2013 10:07AM
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How about we quit sending money to countries that hate us.  That would save us some money.
Oct 16, 2013 10:29AM
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The most dangerous myth of all is that readers of this partisan trash can trust that they are getting unbiased news reporting from CNBC or any of their affiliates
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