Monday, July 25, 2011

Raise the debt ceiling

President Obama has a balanced approach to the fiscal decision to raise the debt ceiling. There really is not a fiscal crisis because raising the debt ceiling is a technical requirement. The real problem is the reduced cash flow because of the legacy of Bush era tax cuts for the rich, two unbudgeted wars and the drug benefits for Medicare. America has the cash flow to service the debt. We could increase the debt to twice the current level and still be able to make payments. But idealistic Baby Boomers want to limit government and keep their own taxes low while middle class and low income citizens will suffer another recession without action.

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