Skip to comments.President Denies Debt Poses a Problem
Posted on 03/18/2013 8:37:58 AM PDT by John Semmens
In an interview with ABCs George Stephanopoulos on Good Morning America, President Obama asserted that there is no debt crisis in this country and says he sees no reason to bargain with Republicans over the budget.
The amusing little analogies Republicans are making about households having to make cuts when times are tough simply dont apply to the federal government, Obama declared. Ill grant that debt can be a problem for households having to cope with limited resources. But how is this relevant to the government?
Lets assume we were going to pay back what we borrowed, the President said. In what sense are the governments resources limited? The GDP is over $15 trillion per year. So one years output alone would be almost enough to pay back the whole outstanding debt. All Congress would have to do is enact the appropriate taxes to channel resources into paying debt.
Now lets ask a more radical questionwhy should we pay back the debt? Obama continued. The people who lent the money did so of their own free will. The money was used for the benefit of the American people. A default on the debt would simply be a transfer from the bond buyersmost of whom are wealthyto everyone elsemost of whom are not wealthy. Would that really be so bad?
Obama was quick to add that he wasnt necessarily advocating default. We dont want to end up in court with creditors suing the government, he said. Even though the government is within its sovereign rights to default, litigation would be a pain. Having the Fed create enough additional money to cover all debts is probably the least troublesome way to get out from under any perceived obligation to repay.
if you missed any of this week's other semi-news/semi-satire posts you can find them at...
And—no semi-satire—Boner agrees!
Even though this is satire, it is still a fact that when the government borrows, the responsibility of repayment falls on the taxpayers, including, insofar as they too are taxpayers, the lenders. Indeed, if, as is very often the case, the government chooses to repay by means of inflating the money supply, the lenders can easily end up paying for the greater part of the government's borrowing.
When I think of tyrants, I wonder why - if they are SO smart - why they never can see the real end effect of their actions.
Blinded by pride and greed, I reckon.
The more we hear from this fool the more stupid he sounds. Or is it deceitful?