Sen. Rand Paul Introduces Default Prevention Act

press release via email | January 22, 2013 | Rand Paul

[Jim Robinson]

WASHINGTON, D.C. – This afternoon, Sen. Rand Paul introduced the Default Prevention Act, which would require the President to prioritize federal revenue to interest on the national debt. Since the current debt limit was reached on Dec. 31, 2012, it is expected that the extraordinary measures the U.S. Treasury has taken to continue funding the government will be exhausted before March.

In order to remove any chance of government default, Sen. Paul’s legislation spells out which government-funded programs should be held at the highest priority to continue funding, while paying down the interest and principal on debt held by the public.

“Some of my Republican colleagues in the House have decided to surrender to the Democrats’ annual plan to increase the debt ceiling. I believe we should stand and fight for a Balanced Budget Amendment to the Constitution before we raise the debt ceiling. My legislation takes the possibility of default off the table so we can continue to push for fiscal restraint. There is no reason the government would – or should – responsibly consider the idea of default,” Sen. Paul said.

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Contact: Moira Bagley 202-224-4343

[andyk]

This is a great idea, but it plays into their hands. Their response will be that the GOP doesn't care about social security and medicare obligations.

The GOP will remain on the defensive.

[humblegunner]

I’m a bit skeptical about brer Paul, just on account of his dad.

[glorgau]

Gosh, I bet Harry Reid is going to schedule floor debate and a vote on this forthwith!

Not.

[C210N]

Plus, the stipulation of this legislation is not needed. The Constitution already sets the priority on debts of the US, which trumps any other program not enumerated.

[andyk]

The Constitution already sets the priority on debts of the US

Okay, I'll bite - do you refer to the 14th amendment?

[hondact200]

Is there more available to read regarding the proposed Act. Sounds like it might put the onus on Obama either deal with the problem or accept the consequences.

[GraceG]

Now THIS is what Legislation SHOULD be, telling the Federal Government HOW to LIVE within their means, not forcing the citizens to have to live within the government means.

[C210N]

Yep: “The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.”

The “authorized by law” would say any obligations from the 23 EO’s the other day are expendable.

Debt is just that... and it’s about $30 B per month. They take in about $240 B per month. Ergo, there is $210 B of “discretionary” payments before letting bills go... but the debt is serviced first and foremost.

What Ø does have the power to do, is to spend the entire remaining $210 B on everything but the military, and zero the military; or, proportionate cuts in entitlements and military.

[andyk]

They take in about $240 B per month. Ergo, there is $210 B of “discretionary” payments before letting bills go

This is an argument that can be made, but one has to be ready to respond to leftists who claim that the result is old people getting sick and dying. People's claims to social security and other entitlements will be violated, yadda, yadda.

[C210N]

It will be in Ø’s lap, as all I’m saying is he is FORCED to pay the $30 Billion. He can risk the ire in any direction after that, as he apportions the remainder.

[C210N]

[Marcella]

Unless or until we see what Paul has set for required payments, I won't make a decision whether this is good or not. I think we will find this Paul is a closet other Paul and I think that closet door will open and we will see where he really stands on all issues, including defense of this country as it relates to our enemies. If he is as “off” as the other Paul, he is not our “hero” in times of trouble.

[mike_9958]

“This is a great idea, but it plays into their hands”

Maybe but the article says that Paul goes further and prioritizes spending, which I would assume would be SS, etc.

I think this would be great - I’d like to read the whole Act but can’t find it.

[andyk]

as all I’m saying is he is FORCED to pay the $30 Billion. He can risk the ire in any direction after that, as he apportions the remainder.

I wish the GOP could make this argument effectively. p.s., nice toon :)

[Agamemnon]

I'd like to see if Cruz joins Paul as a co-sponsor/co-promoter.

FReegards!