debt ceiling

Following Europe Will Lead To Collapse

In the Eurozone Spain is bracing for yet another round of painful austerity as a result of its unsustainable debt. These cuts will cripple entitlement programs that people built lives around, they will cause a spike in unemployment, and put the national security of its people at risk. This is the path big government takes you down; ballooning debt, then a crash where the bottom is not discernable.

Then why does this administration feel that the best way to fix our problems at home is to follow the same path that Europe has? Our budget deficit continues to balloon with no signs of stopping or slowing down. Historically when a nation’s debt reaches 90% as a share of GDP, economies will stagnate. Currently we are at 70% and will hit 90% in under 10 years.

This is unacceptable and can be avoided by adopting the Contract for America’s terms to pass a balanced budget amendment. This amendment will ensure spending does not accelerate at the rate it currently is and spending growth will be capped as a percentage of GDP.

Until this amendment is passed, politicians will continue to tax and spend faster and faster. When money is not coming physically out of their pockets they see no reason they can’t spend it. American government deficit spending needs to stop immediately.

POLITICO: Debt Ceiling Talks have Tea Party Ready for Disappointment – and Retribution

By Kenneth P. Vogel and Marin Cogan

Tea party activists braced for disappointment as negotiations on the debt ceiling finally resulted in a deal Sunday, but sent a clear signal to congressional Republicans that they are in no mood to tolerate compromise and will seek retribution against anyone who has not fully supported their agenda.

They are focused in particular on the fate of the concession they extracted from House Speaker John Boehner in order to get his debt ceiling bill through the House last week – a provision making a balanced budget amendment to the Constitution a prerequisite for raising the debt ceiling again that they regarded as a huge victory.

“If the final bill is passed by establishment Republicans and House Democrats and does not include a balanced budget amendment as a requirement, it will be completely unacceptable and will be seen as a violation of the mandate that the tea party and like-minded people gave Republicans in 2010,” said Ryan Hecker, the leader of a crowd-sourced tea party effort called the Contract from America.

“The tea party didn’t help elect Republicans because they liked Republicans. They elected Republicans to give them a second chance. And if they go moderate on this, then they have ruined their second chance, and there will be a real effort to replace them with those who will stand up for economic conservative values,” said Hecker, who helped conservative House Republicans rally support for the amendment.

Continue reading at Politico.com