reply to post by Observor
Yes it is, mind you, it's Congress that allocates what money will be spent & where, then the Treasury is left to find a way to come up with the money
- usually through tax revenues & the sale of government bonds.
Just as Congress is supposed to make a federal budget each & every year, but they haven't had one since April 29, 2009
Senate has not approved a single Appropriations Bill
. Senate Majority Leader Harry Reid, D-Nev., who decides which bills will be considered,
told reporters on July 10, 2012, that no spending bills were likely to be approved this year because of an ongoing dispute with House Republicans over
how much the federal government should spend.
So our country has been running on "Stop Gap" or continuing resolution measures since 2010.
We have hit the debt limit (ceiling)
. As the GAO says, "the debt limit does not control or limit the ability of the federal government to run deficits or incur obligations.
Rather, it is a limit on the ability to pay obligations already incurred."
But, going over the fiscal cliff, which means we all pay higher taxes, could
lower the increases in our debt by about $7 Trillion, so yes,
recession, but, after that our spending to GDP ratio could
be reduced to 22.5% or there abouts.
So if Congress does NOTHING, we have forced austerity, but that could be the best thing to happen, as we will be forced to reduce waste, redundant
government jobs & other spending (including "entitlement programs") but financially our country would be stronger for it in the end.
So you see, it is more dependent on Congress (both houses) to come to an agreement than it ever is for Obama. The only power Obama has is to approve
or veto the bills that Congress sends to him. He cannot create new spending or revenue by Executive Order, all he can do is consult with the Sec. of
Treas on how to come up with the money already approved/allocated.
If Congress does nothing today or in the next couple days, the US is propelled into higher taxes along with forced austerity (not really a bad thing,
although it won't be fun) and Obama hold no fault for it (and he knows this).
The only way Obama can look bad in all this is if a reasonable bill is passed to him & he vetoes it