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06/17/2011

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Ricardo's Ghost

Disappointingly ridiculous.

I do not understand why people persist in believing that the can simply legislate problems away. Congress can't work out how to balance the budget? Then pass a Constitutional amendment to make their successors in 10 years time work it out. This is what the debt ceiling was supposed to do. The effect? None whatsoever. Despite the prospect of a US default, despite the prospect of the ratings agencies downgrading the US credit rating (and increasing the cost of borrowing), Congress is still populated by incompetent ideologues who refuse to even consider what every other country does to close a deficit: cut spending and raise taxes.

So does a Constituntional amendment that would force the Supreme Court to cut the defence budget, veterans budget, Medicare, social security, education, transport, FBI, State Department etc. etc., mean Congress is any likely to actually get it's act together. I sincerely doubt it. And I doubt because even the people proposing this amendment have no clue how they'd actually do it.

PS: Most Americans do not live by these rules at all - anyone who takes out a mortgage (or indeed any sizeable loan) does not balance their budgets in every year of their lives.

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