“$19,000,000,000,000.00″ … Says Harry

Harry Reid says he will raise the debt limit ceiling to just under $19 trillion.

(CNSNews.com) – Senate Majority Leader Harry Reid (D-Nev.) said on Wednesday that if the $16.394 trillion current legal limit on the federal government’s debt must be raised in the next few months by another $2.4 trillion, “We’ll raise it.”

That would set the debt limit at $18.794 trillion.  (article)

In the Fall of 2008 a strategic decision was made by House Speaker Nancy Pelosi, Senate Majority Leader Harry Reid, and then Senator Barack Obama.   There would be no fiscal year 2009 budget, instead they opted specifically and intentionally to use “Continuing Resolutions” to fund government.

This allowed their candidate Barack Obama to take office without any spending restrictions at all.    In that approach any and all federal spending could be essentially unlimited.   This would also provide the cover for paying back their election supporters with the “Stimulus Funds” under the auspices of The “American Recovery and Reinvestment Act Bill”.

In fiscal year 2009 there was no budget so the Stimulus and Bailout spending became embedded in the baseline budget figures.   Again, a strategic approach.    Without a budget removing the stimulus spending the baseline spending could, and would, continue at stimulus levels of spending in Fiscal Year 2010 and beyond.   It worked.

Again in Fiscal Year 2011 and Fiscal year 2012 the same approach was taken.   This led to continuing resolutions and raising of the debt ceiling.

Understanding the difference between “A Budget” and “A Continuing Resolution”.

It is important to remember without a Federal Budget there are no purse strings to tighten to stop spending.    Budgets make spending appropriations, through road maps from Budget Committees, before they are incurred.   Continuing Resolutions pay for the expenditures AFTER they are incurred.

There is an important distinction between the two approaches, and there is only one way to stop the use of Continuing Resolutions.    Don’t raise the debt ceiling.

This was tried in the summer of 2011 and the Republicans were outmaneuvered by President Obama.   John Boehner is the worlds worst spokesperson to make the case of fiscal sanity to the American people, and Mitch McConnell is staggeringly and insufferably the only one worse.

Until people understand that it is an intentional strategy of unlimited spending to operate the Federal Government without a budget, nothing will change.

By law the President must propose a budget each year, so must the house, and so must the Senate.   But there is no law that requires one to actually be adopted.

Subsequently the President proposes insane budgets that could never pass congress.   How bad are they?   So bad that the Fiscal Year 2011 budget only received the votes of two democrats, and the Fiscal Year 2012 proposal did not receive any Democrat votes.

The House of Representatives, in control of Republicans since Jan 2011 presented and passed a Fiscal year 2011 budget and a Fiscal Year 2012 Budget (The Ryan Budgets).   Again, strategically Harry Reid killed them both in the Senate.

So the government is funded with Continuing Resolutions to pay for expenditures after they are incurred.   And every year the Stimulus is respent on government.  And the only way to stop it is to refuse to raise the debt ceiling – which congress will not do.

So President Obama took office with $8.5 Trillion in Debt and now Harry Reid will raise it to $19 Trillion…..  Insufferable, or at least it should be.

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26 Responses to “$19,000,000,000,000.00″ … Says Harry

  1. jordan2222 says:

    Sundance: This is an email I received from a close friend. She, along with some others, have become followers but cannot spend the time required to read everything here so I send them your political threads as only a few of us could ever keep up with George’s issue. I am sure you know you have many old Breibart fans who visit here but do not post. You might appreciate this.

    I send her comments about some of your threads and this was her reply to me about your thread below after I had added a comment about how I believed that Obama may not have pursued gun control because he planned for the UN to do that “for us.”

    Here is her reply:
    There is no way dems will “take responsibility”–like some one here said, who will force them–the mainstream media?
    100% Dems backed the obamacare bill.
    Do you really think anyone is going to blame them when the whole thing goes bad? Of course not! They were just trying to help all those poor people who didn’t have good care. Who the hell were those 20 million people anyway? Illegals?
    The Dems are just trying to help the poor, feed the masses, take care of the sick and it’s the mean Repubs who just let’s see, what’s the current word…oh yeah, OBSTRUCT.
    Today Harry Reid said they will raise the debt ceiling to 18.6 trillion BEFORE THE END OF THE YEAR!!! IF THEY HAVE TO, he said. what does that mean, “If he has to”? Is there a damn gun to his head?
    I agree, they should have to live in the world they are making, the players and the lib voters. BUT what these people are missing is that we are about to lose our sovereignty next. It isn’t just this country at play. bo will reach out to the UN. After all, its a small world, after all! Who doesn’t want to all get along and be friendly neighbors and help each other? The 2nd amendment means exactly NOTHING to the UN. There are no amendments in the UN…. AND then nationalizing our economy.
    Crazy, huh?
    Just like GM, the gov owned the majority share. Then made it bankrupt so as not to have to pay creditors. And then tell us that GM paid it all back! Only libs believed that anyway. But what could we do?
    Then he nationalized healthcare. Gave all insurance companies and goddamn AARP jobs for life. I can’t believe he isn’t unionizing the healthcare industry. yet.
    Next will be nationalizing all business that is floundering. BAIL IT OUT, go bankrupt, screw the bondholders and stockholders, prop it up save the unions and there!
    But the real end will be when he starts taking over the businesses making money. Or, WERE making money until his suffocating restrictions and regulations killed them. How about the coal industry? Nasty business that. Regulate them until it’s not profitable anymore. And support green crap. Then when the businesses are put out of business, you could just go in and have the gov run the biz, and also lift the restriction and regulaton that put them out of business. Oh, yeah, and you could say you wanted to give jobs to all those poor people who lost their jobs in coal because the companies couldn’t run the industry as well as gov can.
    It is virtually unlimited the companies he can put out of business, then run in and save them from the gov, unionize them and give them pitiful little jobs.
    Look at countries like Saudi Arabia and Norway….they take the resources, oil mostly in both countries, give the people a share, and give the big amount of money to the people who can keep them in power….
    I am killing myself here.

    ++++++++++++++++++++++++++++

  2. Sharon says:

    from the post above:

    So the government is funded with Continuing Resolutions to pay for expenditures after they are incurred. And every year the Stimulus is respent on government.

    I’m linking an article again from last June at AT that has to do with the mysterious, unvoted-on but ever-increasing expenditures under the mysterious wonders of the continuing resolutions. If you and I tried this in our family budgets, we’d be in big trouble rather quickly. Of course, only because we haven’t figured out how to print money that we don’t have without ending up in jail.

    Which brings up a Washington concept called the current services budget. Stick with us here; this is important.

    In the 1974 Budget Act, Congress slipped this concept into the budgeting process. What it means is this: spending in the next fiscal year that supports all the programs — the current services — in the current fiscal year is automatic: it is the baseline.

    Think about that for a second. The “no change in spending” condition in Washingtonese means that if, for instance, there are more claimants to a service such as Social Security or Medicare, that is “no change.” It also means that all the expenditures to maintain current services represent “no change.” That is, the promotions, pay increases, adjustments for inflation to maintain current services represent “no change.”

    Why is this important? Because the method for financing the government without a budget is a “continuing resolution.” And a continuing resolution is used to maintain current services.

    …..so “maintaining current services” merrily increases the amount authorized to be spent, year after year after year after year, without anything ever being decided or evaluated or voted on. Such a deal.

    http://www.americanthinker.com/2012/06/obamas_spending_and_the_dog_that_didnt_bark.html#ixzz2BhvZZTSl

    • waltherppk says:

      Maybe I am not understanding this correctly, but what I understand is that the 1974 act only authorizes what are budget increases on the baseline for reason of inflation or other reasonable increased costs and that the necessary associated appropriation must still be provided in the usual way by the House, and that any unusual increases can be subjected to “budget reconciliation process” as a prerequisite for the approval of actual appropriation to be made by the House. The 1974 act does not amount to an automatic renewal of the previous years appropriation absent budgetary oversight and appropriation approval control by the House. I haven’t gone through the several related acts line by line yet… but based on the summaries that is what i am understanding. It isn’t like the House has relinquished authority or oversight approval for appropriations because of “baseline budgeting” which seems to be a budget related “ballpark figure budget recommendation general formula” as a frame of reference for what realm would be reasonable for budgets seeking approval and appropriations. Those subsequent requirements of budget approval and appropriation do not appear to be simply made automatic as if the House is reduced to being a passive spectator of a process in which it has no authority or control. H.R. 920 was passed by the House which seeks to return to a zero base budget baseline so that the premise for the 1974 act which has been subverted is not continued to be misused. Of course the present Senate will never approve H.R. 920 but even without it being approved the House still retains the other authority of oversight and appropriation approval or denial and budget reconciliation process which it has by law also so the budget and appropriations is not just a runaway train having no brakes, from what I get from reading this so far.

      • Sharon says:

        Read the AT piece to see how current services “budgeting” is being used. Whether or not that was ever the intention is another issue. This is what they have been doing for 5 years. No budget. No vote. Just more and more authorizations for more and more spending with no review. It’s a wonderful thing.

        • waltherppk says:

          Yes I understand and agree with what you are saying but I am saying they are subverting the law and the House has the legal authority to stop it.

          • Sharon says:

            Yes, they do. They don’t choose to.

            • waltherppk says:

              Okay so our shared contempt for Boehner not doing his job is on the bullseye and it is not the system that is broken or the law that is wrong but it is the corrupt persons running the show. Okay then why not respond to criminals for the criminals they are, call ‘em crooks and deal with them as crooks ought to be handled with prosecutions, impeachments or whatever else. This is corruption we are talking about, criminals operating under the color of authority. A lawless mob is still a lawless mob even wrapped in a flag.

        • waltherppk says:

          BTW yes I did read the AT article as well as reading the summaries of the actual 1974 and another related law which appear to be budget control (as in constraint acts) not appropriation automation and delimiting acts. I really think you all are missing that the actual appropriation process is not legally circumvented by these budget acts. The House still has the final say and not just with regards to the global federal budget either but with specificity for what is appropriated and what is not funded.

  3. lovemygirl says:

    I am trying to express to my friends how bad the situation is. Most people do not get it and think it is a bump in the road. One good sign was an unemployed (former D) father of one of those dumb college students that thought Romney was going to outlaw BC said. “I interviewed for a job today and was told that they eliminated the position because of the election, F Obama.”

    • lovemygirl says:

      They did not specically say the position was eliminated because of O’s re-election but did say things like increased costs (Obamacare). This guy thought he had it and didn’t lose it to another candidate for the job, the job went away for everyone.

    • jordan2222 says:

      All of my friends get it.. at least, if no more that some folks here and for damn sure more than those bright GOP pundits. A couple of them will gently kick my ass when I misspeak. One is brutally blunt so I know better than to speculate. However, no one is on board with me yet about “alternate” not necessarily “peaceful” solutions.

      Sundance’s sniper comment made perfect sense to me because peaceful solutions are disappearing fast.

      We just witnessed the power of THEIR vote but we also witnessed the END of OUR impotent vote. I am through with that. There are now new ways to vote.

      Ann Barnhardt is as feisty as Couler and her idea number 5 rocked my soul; Can you imagine if only a handful of us were doing that? How about we organize a few million patriots to show that ass hole and the FED how WE can create money, too? I would say she is mad as hell.

      http://www.barnhardt.biz/

      5. START THINKING AGGRESSIVELY AND OFFENSIVELY

      I’ll just give you an example so you know what I mean. I found out that when you don’t file with the IRS, what they do is “subpoena” your bank statements from your bank, and then they simply go in and add up all of the credits in your bank account and IGNORE ALL OF THE DEBITS. No expenses are recognized whatsoever. Every dollar “in” is considered to be pure, fully-taxable income.

      Sounds horrible, right? Especially if you are a business owner like me, right?

      So, how do I make this work for me? Simple. I’m going to get some cash deposited into the bank in a quantity that I am prepared to lose, and then I am going to login to my online banking interface and sit here all blessed day and transfer that quantity of money between my bank accounts. I’m hoping to “generate” “income” in the form of credit entries on my bank statements into the eight figures.

      In theory, if I had enough of a cash base, I could literally offset the entire national debt by “generating income” for the IRS in this way. But, I’ll just target an eight-figure “taxable” income for 2012. Heh. See what I’m getting at here? You don’t cower. You RUN AT THEM.

      If those rat bastards want to play, I’m their huckleberry.
      _________________________________________
      Original thread is here:
      ttp://theconservativetreehouse.com/2012/11/08/the-last-refuge/
      Notice what Sundance says, beginning with this question further down in his column, in particular the sniper comment: Start here:
      Is she not yet still worth fighting for?
      Is she not yet still worth fighting for?

      We think so.

      And while we’re fighting, we are not going to tell the cannon holders what Trees we are hiding in, or what our entry point is into the collective society behind the wall. What separates the American Patriot apart from any other person in the world is an American would rather die on his feet, than live on his knees. That means something to us, and perhaps to you also.

      Knowledge is power – A single sniper, perfectly willing to die for principle, well skilled, well-trained and severely disciplined, can keep an entire selfish battalion in fear while halting their advance.

      Want proof?

      Example: The entire monolithic collective governmental legal apparatus is united against George Zimmerman – Yet an insignificant Treehouse can hold back the opposition.

      The Treehouse is truly going to be a REFUGE in the days ahead. And as that becomes increasingly important, we will guard the DNA of it even more fiercely. This is a place where like-minded folks gather to restore their strength and build themselves up for the ongoing battle, whatever form it takes, and we will protect it.

      *spit*

      Wolverines !
      _______________________________________
      I bet Obama will ban Judah’s Sceptre and Joseph’s Birthright but I have an original copy.

      God gave me my rights, not the gubmint.
      WOLVERINES!!!

      • jordan2222 says:

        Sorry here is the original thread by SD
        http://theconservativetreehouse.com/2012/11/08/the-last-refuge/

        Mods: What is the current limit on links in a post?

      • ragnar says:

        This is the part in Atlas Shrugs “The fiction,” where Reardon will not take “help” from them and they start begging him to. Make no mistake. This is Atlas Shrugs….The reality.

      • apachetears says:

        Americans are fat, dumb and happy, easy to lie too and ignorant of any item, event or agenda that’s not fed to them by the MSM. Hollywood teaches them life style and history and tells them who it’s cool to vote for.
        They won’t fight for their freedom, give them cash for free and they will turn into sheep and willingly vote to be sent to the gas chambers.
        There aren’t enough patriots left to defend anything especially the constitution.
        Stock up on food and water, forget about guns and ammo those are soon to be gone buy a baseball bat and take a low profile become a mouse or you might end up on somebodies list.
        I plan on watching as American’s finally realize that what they wanted in Obama is what American’s got and now are going to receive just what they richly deserve.
        Want to bet on one big bloody civil war inside 10 years?

  4. ragnar says:

    Those cheapskates. Why not just make it 40 trillion..? Fixing this disaster is not possible at this point.

  5. boricuafudd says:

    There is a consensus from economists that the government must spend, spend, spend now since the money they are borrowing has a negative after-inflation interest rates payback. Of course they say that this is a short-term answer and should be done with reduction on the back end. The thinking is that governments would buy our T-Bills and notes, even with no gain as a hedge against the collapses in the Euro and other things. Meaning that their money is safer with us, than to leave in the European banks in a collapse, even if all they would get in return is the principal. They use WWII as an example, ignoring in large part the consequences of why it succeeded after the war, when Europe and Asia were devastated, and we were the only ones in a position to supply the worlds needs.

    The issue is that Fed is buying our notes, as part of its latest QE3, another effort to spur the economy, and doing that is making investing (buying) in T-Bills unattractive, as the problems with the Euro. The only ones still buying our debt are the Chinese and Japan, but the Chinese have already announce that they would not be buying further notes, for now, citing the mounting debt.

    Here is one of the many articles on the subject:

    http://www.economist.com/blogs/democracyinamerica/2011/08/stimulus

  6. apachetears says:

    People in this area have caught on, they saw an election that was obviously slanted so Obama could not lose. Most seem struck dumb and in shock about that word Obama used, “Revenge” and they realize the blacks they see on the TV ain’t really how blacks are and far from a work together MLK type dream/vision the majority blacks want revenge on white people. Even if it’s a cut their nose off to spite whitey revenge.
    The war on women will morph slowly into a war on white people and conservatives and as for elections, we will not have anymore honest and free elections the soviet ballot is the new politics.
    I’d say half or more Republican politicians are in on the fix and there is no real two or three party political system. I would not doubt a bit if evidence came out showing Romney/Ryan took a dive.
    Nope, We ain’t ever gonna see the end of Obama I believe he will be a Three term POTUS.

  7. John vi says:

    Oh it’s nitpicky, but I count professionally.

    The title head is off.

    19 comma 000 comma 000 comma 000 DOT 000 is only 19 BILLION. You need three more orders of magnitude up there.

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