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Posted on 10/06/2013 4:43:44 PM PDT by EternalVigilance
It’s impossible to default on the debt——years down the road, maybe
Average monthly interest costs are $18 billion….. we take in on average $225 billion. By law, the president must pay interest first before anything else.
In addition to interest we must roll over the $550 billion of maturing debt each month. Newly issued bonds replace maturing bonds with no net change in total debt outstanding. If the Chinese and other investors won’t purchase them, Federal Reserve Chairman Bernanke will just buy them for the Fed’s account.
When confronted with money problems, adults make decisions and set priorities. We pay the mortgage before we pay the cable bill. But the Obama administration chooses tointentionally inflict pain on the American people by making the most headline-grabbing cuts possible.
What better example of this disgusting antic than erecting physical barriers on Tuesday, blocking access to the open air World War II Memorial to a group of Mississippi visiting vets. Erecting the barriers actually cost money to do so!
They recently shut down White House tours and National Parks but still managed to find the money for bonuses to IRS staffers and a multi-million dollar weekend of golf for the president and Tiger Woods.
The Social Security folks send out $68 billion a month. Active-duty military members get about $12.5 billion. From there, we work through the budget in order of priority, air traffic controllers, meat inspectors, etc. Unfortunately, the $225 billion a month falls short of the federal government’s important obligations.
But why not be honest and say “the government wouldn’t be able to pay all of itsbills” rather than the over-dramatic nonsense that “we will default on our debt”?
Did we need to lay out the $13 billion in crony loans to the solar energy investors that also happen to be major Democratic donors? Or, most especially, the billions that the “Affordable” Care Act is going to cost?
What if we asked employees of departments of agriculture, education, and energy if they would enjoy a voluntary unpaid sabbatical for the number of months they would choose? Would that provide enough cash flow to keep the White House tours going and the parks open for the American people?
The doomsayers have it exactly backwards. Say your personal finances were a mess, so you quit adding debt and cut spending. Your credit score would improve. If you don’t believe me, ask any banker. Why would raising our national debt limit help our credit rating?
Some in the media posit that Standard & Poor’s reduced our credit rating due to “political gridlock.” Do you think it just might be because we are like a household earning $26,000 a year, spending $38,000 and increasing daily, our $169,000 credit card debt? How significant is the comparable $865 sequester reduction in relation to a $38,000 expense level?
Why do we tolerate such nonsense and demagoguery from our politicians and media?
Employees in small towns all across America suffer lower incomes when their employer struggles or goes out of business. In Washington, D.C, forget it! Our Ruling Political Elite believe we out here in the hinterlands (colonies?!) just fell off the pumpkin truck.
If you read or hear of “journalists” talking about default, forward them this...
God Bless
“By law, the president must pay interest first before anything else. “
Again they fail to understand this president’s lack of respect for law.
Maybe someone who is more of a constitutional scholar than I can answer my question. How can the president unilaterally raise the debt ceiling under the 14th amendment?
I my plain reading of section 4 of the 14th amendment, it clearly relates to debt incurred by the rebellious states during the civil war and that the U.S. Federal government would not be responsible for the debt incurred by the CSA, nor debt for slaves becoming free.
How does the 14th amendment relate to today’s current debt situation?
So if a default occurs, it will be intentionally brought about as part of this Administration's 'scorch-America' policy.
The answer is that he can't. The key phrase in Section 4 would be "authorized by law". And 'by law' requires an act of Congress.
dumBO will secretly get his buddies at the FED to a print more money on the bonds he is selling them.
Er,... No. When we sell new bonds to "replace" (i.e. to pay off) maturing bonds those new bonds will be sold at the current discount rate. If our finances are weaker now than when the old bonds were sold we will have to take a higher discount rate on the new bond sales and the total debt we end up with will be higher.
Again they fail to understand this president’s lack of respect for law.
Exactly.. WHo’s to STOP HIM... the justice department.?.
Obama OWNS the justice department..
OH!... and the CIA, NSA, BATF, IRS, Military, most media networks..
and the entire vast Executive branch of federal givernment.. (growing larger daily)..
His minions in the UNIONS, Hollywierd, and Academia will provide “cover” too..
And a vast array of female “ditz’s” hanging on his every lie..
Oh! and the gays, felons of every stripe, Moonbats of every shape size and nasty political odor..
Thinking he does not know this would be your first mistake..
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And the fact that not one person of status will challenge him.
I have a feeling we’re about to find out how many people are paying attention.
“By law” ... you beat me to it.
So the solution is to borrow more money?
Oh, yeah, “default is a bunch of hooey,” Forest...I mean Foster. Just keep your eye on the magic money tree. It produces money without production of anything useful.
I don’t think he’s saying that, no.
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I don’t think he’s saying that at all.
The way I read it, he’s simply making the point that talk of default is nothing more than political manipulation. They have more than enough to pay the creditors.
Section 4.
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. But neither the United States nor any state shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.
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The only branch constitutionally authorized to make the laws is the Congress, in Article One, Section 1.
Section 1.
All legislative powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.
Out total debt that includes unfunded liabilities is about $211 trillion.
Tell this to the Republicans who keep saying we’re going to default on our debt. It’s frustrating.
I’m not buying that, personally. Because the bulk of it is to pay for promises that aren’t even constitutional in the first place.
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