Sarah Palin opposes an increase in the debt limit but her budget proposal is not accompanied by hard numbers:
"Hells no. I would not vote to increase that debt ceiling," she said during an interview on Fox News, where she is a paid contributor.
..."It turns my stomach to hear this assumption articulated that we have to, despite the fact that we are raking in the federal government $6 billion a day," she said. "Take that money and service our debt first and pay down some of that debt. Make sure that we are showing the international financial markets and our lenders that we're serious about getting our debt and our deficit problems under control."
Hmm. In order to avoid a debt ceiling problem the government has to reduce other spending, increase revenue, or sell assets. I don't think Ms. Palin favors tax hikes, but I don't think anyone believes spending cuts alone can get this done (the Ryan budget reduces but does not eliminate projected deficits).
However, cool Reason guides us to some accounting machinations that may delay the fiscal apocalypse. Another idea they do not describe was used once by Reagan - divert the payroll tax to the funding of general operations and meet Social Security obligations by selling trust fund bonds. Debt held by the public would grow but net government debt would not.
The debt limit restricts gross debt, so if you reduce the amount of eligible debt that the government owes to itself, you can continue to grow the net debt while staying within the cap. It would be legally dubious to cash in the Trust Fund’s bonds to pay for general government operations, but even just redeeming bonds to pay Social Security benefits and then diverting Social Security tax receipts to general government could buy hundreds of billions of dollars a year in breathing space. We’ve been here before: Ronald Reagan used this strategy during a brief debt limit standoff in the mid-1980s.
Yet aother interpretation of Ms. Palin's position is to take it literally - she may simply mean that as a Senator she would not personally vote to raise the debt ceiling but instead would Vogue, as Obama and Reid did when voting against a ceiling hike in the dark Bush Era.