As a libertarian, I am strongly in favor of not raising the debt ceiling at all. It would force the federal government to cut spending by about 40%. While this would be a tough short-term adjustment for many, it would be highly beneficial in the long run. It would mean that government would spend 40% less in the next year and hopefully it would continue. It would mean that there would be an extra $1.6 trillion for the private sector to have instead of the government. It would mean a much better economy in the long run.
This is why I believe that the debt ceiling will be raised. My bet is that it will happen before the August 2 deadline, but if not, it will still be done before there are any major cuts or any major defaults (like interest payments or Social Security checks).
I heard John Boehner on Sean Hannity's radio show yesterday. The guy is even worse than I thought (Boehner that is). I don't much care for Sean Hannity, but one could say that his core listeners are at least somewhat fiscally conservative. For this reason, I figured Boehner would at least put on a show for his target audience. But he couldn't guarantee that there would be no tax hikes.
Then he started talking about some plan that would cut $1.1 trillion over the next ten years. Hannity asked him how much of it would be in the next fiscal year. Boehner said it would be $30 billion. This is a joke. That is less than 2% of just the yearly deficit. To top it off, it looks like even this amount is a phony cut. It would be a cut in the projected spending, which is of course higher than the previous year. In other words, Boehner wants to cut a deal that would make essentially no cuts in the next budget. This is the only period that Boehner and this Congress can control right now. They can't make cuts on behalf of any Congress 10 years from now or even 2 years from now.
I was getting a haircut yesterday and it is always amusing to listen to conversations in a barbershop. There was an older guy who said he figured he would get a haircut before Obama took away his Social Security checks. Then he criticized Obama for not wanting a balanced budget amendment. Then he said that there are 536 clowns in DC that can't work together. He said they should be able to get along and make a deal.
He used the number 536. He is counting 435 House members, 100 Senators, and 1 President. He should have said 535. Ron Paul should not be included with this group.
This guy, unfortunately, is like the typical American. He says in one breath that he wants a balanced budget. Then he says they should work together for a deal. For anyone who wants a balanced budget, they should not want a deal. For anyone who wants a balanced budget, there is only one thing to advocate in this case: DO NOTHING!
This is why it is a joke that so many of these politicians are talking about a balanced budget amendment as part of a deal. If you want a balanced budget right now, simply do nothing. Just don't raise the debt ceiling and the budget will have to be balanced.
As I pointed out the other day, even if the politicians didn't want a balanced budget right now but really wanted spending cuts, then just raise the debt ceiling by a smaller amount. If next year's deficit is projected to be $1.5 trillion, you could raise the debt ceiling by $100 billion each month for the next year. This would force a cut of $300 billion from the projection. I am not in favor of this, but I am just pointing out how easy it is for the Republicans in the House to cut spending if they really want to. If the Senate rejects it or Obama vetoes it, then the ceiling will not get raised.
The Republicans in DC are a bunch of frauds. Ron Paul is an exception. Even most of the Tea Party politicians will sell out. If you are a libertarian, you should be an advocate of doing nothing. This will cut spending drastically. Any Republican (or anyone else) who supports raising the debt ceiling is not really worth your support.
This whole debate is a good thing. The debt ceiling will get raised, but it is serving as a good educational vehicle for the American people. More people are realizing that the politicians are not on their side. More people are realizing that the politicians are serving themselves first. More people are getting fed up with big government. As time goes on, hopefully more people will withdraw their consent from government. The empire will come crashing down. Don't be in the way when it does.