Posted on 01/20/2011 9:25:29 AM PST by Michael Tergent
As members of Congress debate whether to raise the U.S. debt ceiling—the limit on our government's debt—we should all agree on at least one thing: Under no circumstances is it acceptable for the U.S. to default on its debt. Not only are we morally obligated to honor our debts, but we benefit greatly from the nearly universal conviction that those who lend to us will always be repaid, on time and in full. We should never undermine that conviction.
Fortunately, even if Congress doesn't raise the debt ceiling, a default on our debt need not follow when our borrowings reach their limit in the next few months. I intend to introduce legislation to make sure of this.
(Excerpt) Read more at online.wsj.com ...
My opinion is that entitlements need to be reformed, but cannot be reformed because politicians are afraid to touch such volatile issues. And so entitlements get worse and worse and worse.
If we hold the line on the debt ceiling, and if we ensure that our debt payments will be made -- then we are backed against the wall and all the cowardly politicians will have no choice -- they WILL start reforming entitlements and they WILL start making real cuts.
This is inevitable. We've been putting it off, but we cannot avoid it forever. The sooner we start, the better off we will be.
I floated this idea on a thread 2 weeks ago. I guess Pat Toomey is a Freeper.
Sounds like just what China ordered they want some reassurances for the debt how timely.
Bump
Email from DeMint on this idea.
Dear Fellow Conservative:
I’m writing to share an important Wall Street Journal op-ed written by newly-elected Senator Pat Toomey (R-PA), which outlines how we can freeze the debt ceiling without defaulting on our debt obligations. Senator Toomey’s argument is nothing short of a game changer in the debt limit debate.
Senator Toomey correctly points out that if the debt limit is reached later this year, the government will still have plenty of money to service the national debt. He writes,
“In fact, if Congress refuses to raise the debt ceiling, the federal government will still have far more than enough money to fully service our debt. Next year, for instance, about 6.5% of all projected federal government expenditures will go to interest on our debt, and tax revenue is projected to cover about 67% of all government expenditures. With roughly 10 times more income than needed to honor our debt obligations, why would we ever default?”
Click Here to Read Toomey’s Op-Ed
Americans should reject the sky-is-falling-hysteria coming from President Obama and demand that Congress stop the debt and balance the budget. You can add your voice to this effort by signing the “Stop the Debt” pledge at http://StopTheDebtPledge.com.
Now is the time to make fundamental, long-term budget reforms that will stop the spending and save our country from fiscal ruin.
When the Senate considers the debt limit next month, Republicans must do everything they can to block an increase in the debt limit. Senator Toomey has presented the facts they need to fight back when they’re accused of threatening to put the nation in default.
I want to thank each of you who helped elect Senator Toomey last year by supporting the Senate Conservatives Fund (SCF). Without your support, he wouldn’t be in a place to influence this critical debate.
Respectfully,
Jim DeMint
United States Senator
Chairman, Senate Conservatives Fun
We were in horrible debt situations after the wars in the 18th century. We regained our credit worthiness by paying our debtors and getting out of debt.
I guess that is too simple of a solution today.
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