Debt Ceiling: What is it and why should Americans care?

Ok. Many of you who have watched CNN in recent weeks and heard the phrase "debt ceiling." Some ask the questions "What exactly is a debt ceiling?"and "Why does it matter to me?" Well pull up a chair and I'll fill you in.

The debt ceiling is the legal borrowing limit by our government. Prior to 1917. Congress had to vote on borrowing money each time the issue came up. Congress decided to give blanket approval for most types of borrowing---as long as the total was less than an established limit.

Why does it matter to me? Glad you asked. The nation's debt is inching closer to it's limit of $14.3 trillion dollars. The ceiling could have been breached as early as May 16 but Congress worked out a short-term deal to give itself more time, hence the circus we have now.

Congress has until August 2nd to forumlate a deal to raise the debt ceiling to avoid a loan default. If the debt ceiling isn't raised then the country will lose the ability to borrow money to pay its bills. There is NO precedent for this type of situation. Congress has never defaulted on any type of loan in its history.

Republicans like John Boehner say that if  the ceiling is raised the limit, they need a commitment from the White House for more spending cuts, however the Obama Administration has resisted the idea of a "cut, cap and balance" plan and instead argue that the solvency of the government is too important to be held hostage by secondary issues.

Enough stating boring facts. Now here is my own opinion.

The ceiling needs to be raised but it doesn't matter now.

We already did and still are bailing out the financial industry, bought all their garbage, bankrupted Fannie Mae and Freddie Mac, stripped the value of deposits owned by the prudent, are giving free money away thru the Federal Reserve to banks, speculators, deadbeats, debtors, wall street and the government, literally imposed a tax on savers' wealth with interest rates engineered by the Fed.

We destroyed the value of our once sovereign currency (again the fed), stripped our manufacturing and sent it overseas, fought two unfunded wars supported by those that got the blood money tax breaks, expanded Medicare drug coverage to help its bankruptcy along, borrowed all the money from the SS trust fund and called it a surplus in the general budget and bailed out foreign governments.

 In addition, we  let corporations be treated as individuals with unlimited campaign money and the ever present lobbyists bribing congress, enabled a corporate welfare system where companies invest a million on K street to gain a billion in legislated profits through graft and one asks do deficits matter?

Obviously not.

What the hell did you think was going to happen America?

Ok. I'm done.