Washington Monument Syndrome Versus Federal Default: Gov't Has Plenty Of Slack

Confounded Interest ^ | 10/15/2013 | Anthony B. Sanders

[whitedog57]

The Washington Monument syndrome is describe the tendency of government agencies in the United States to cut the most visible or appreciated services provided by the government when faced with budget cuts. And protect massive waste (since no one would miss the massive waste if it was cut). Such as closing National Parks and Monuments.

What are government agencies hiding? The fact that agencies have large concentrations of non-essential personnel. Even Time.com recognizes that most of Federal government in non-essential.

The interest payments on Federal debt is a small percentage of Federal current expenditures (11.5% at the end of Q2). So, the US has plenty of income to pay the debt.

govexpint

How about if we add in Social Transfers such as Social Security (pink line)? Still plenty of room to pay Treasury debt interest and social transfer payments.

ssintexp

Then what is the problem? Simply put, our Federal government spends too much money. Or wastes too much money.

So, there IS NO REASON FOR THE US TO DEFAULT unless President Obama orders Treasury Secretary Lew to do so.

Perhaps that is why is the US 5Y CDS is so low.

americacds

Obama loves basketball. The ball is in your court, Barry! Try not to dribble off your foot.

Barack_Obama_playing_basketball_with_members_of_Congress_and_Cabinet_secretaries_2

The Washington Monument falls prey to the Washington Monument Syndrome, courtesy of President Obama.

shutdown

[whitedog57]

What a bunch of schmucks!

[American in Israel]

Simple solution to the debt crisis, close everything that is open in government and open everything that is closed.