Latest GOP Debt Deal: How Much Does It Cost?
“Republicans” in Washington, D.C. have offered Democrats a no-strings-attached, six-week increase in the federal debt limit as part of their efforts to strike a deal.
This, of course, is total capitulation … a.k.a. what happens when a divided army simultaneously battles itself and its “frenemy.”
Democrats aren’t accepting the GOP’s unconditional surrender, though. Instead they are upping the ante – demanding spending increases in addition to more unsustainable borrowing (not to mention the full funding of Barack Obama’s socialized medicine law).
Lost in this high-stakes drama, though, has been the cost of this new borrowing. Seriously … how much deficit spending are we talking about over the next six weeks (assuming the Democrats eventually permit the GOP to surrender)?
Apparently no one knows … and the mainstream media has completely ignored this vital bit of information as it obsesses over every regurgitated rhetorical syllable from the ruling elite (and does its best to portray the so-called “government shutdown” as some sort of post-apocalyptic Thunderdome).
We did some digging with our sources on Capitol Hill …
“We figure $300-600 billion, depending on the technicalities of the ‘extraordinary measures’ the Treasury would be permitted to use,” one informed source told us.
Wow … $300-600 billion? In just six weeks?
Be sad (for your wallet) … but don’t be surprised. Remember, this is the same government which blew through $2.4 trillion in new borrowing in only seventeen months per the terms of the last debt deal.
What did all of that new government spending accomplish? Well, the last time the government provided an update on the labor situation the nation’s workforce had shrunk to a 35-year low – while the number of Americans outside of the national workforce had reached an all-time high of 90.5 million. Income levels remain down … while prices (including the cost of borrowing) continue to rise.
In other words, all of that deficit spending – and all of the Federal Reserve’s money printing – did not stimulate the American economy.
But hey … let’s just keep on borrowing and printing money like there’s no tomorrow (and demonizing the handful of those in Washington who see the writing on the wall).
That should work, right?