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For Cruz, Reid & Boehner: If the interest pymt on the federal debt is done 1st, how can we default?
5/7/2013 | Laissez-Faire Capitalist

Posted on 05/07/2013 7:00:09 AM PDT by Laissez-faire capitalist

We have had a tax increase implemented. Now, with the additional revenues (taxes) added onto what we were previously taking in each year ($2.3-2.4 trillion dollars), we will still be able to make the interest payment (about $425 billion annally or $35 billion per month) on the federal debt outstanding... And thus we cannot default.

After that, we use the remaining tax dollars to pay for Social Security, then Medicare, Medicaid, unemployment benefits, food stamps and a very large portion of our military budget.

So... why do we need to borrow another $1 trillion plus in May?


TOPICS: Chit/Chat; Miscellaneous; Society
KEYWORDS: 113th; budget; congress; debtceiling; debtincreaseinmay; democrats; economy; obama; sequester; taxes; vanity
BTW, Reid should lay off of the childish Ad Hominem attacks against Cruz when discussing the federal debt ceiling - and so should ex-gov Richardson pertaining to Cruz bsupposedly not being Hispanic. Please stick to the issues...
1 posted on 05/07/2013 7:00:09 AM PDT by Laissez-faire capitalist
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To: Laissez-faire capitalist; All

What say you?

I wonder how many will scream in this month that the sky is going to fall?


2 posted on 05/07/2013 7:01:42 AM PDT by Laissez-faire capitalist
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To: Laissez-faire capitalist
BTW, Reid should lay off of the childish Ad Hominem attacks against Cruz when discussing the federal debt ceiling - and so should ex-gov Richardson pertaining to Cruz supposedly not being Hispanic.

Perhaps you haven't noticed that if it weren't for ad hominem attacks, the left would have no arguments at all.

3 posted on 05/07/2013 7:10:29 AM PDT by Maceman (Just say "NO" to tyranny.)
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To: Laissez-faire capitalist

Are you under the impression that the principle never has to be repaid to bond holders?


4 posted on 05/07/2013 7:23:00 AM PDT by aimhigh (Guns do not kill people. Abortion kills people.)
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To: aimhigh; All

How much are we paying towards the principle?

I don’t see the principle going down (the federal debt outstanding)

All the federal debt does is go form 12 to 13 to 14 to 15, now 16 trillion dollars, and up and up.

We first have to stop borrowing. Then find a way to start paying down the debt from $16 trillion to 15 to 14, 13, etc.

You get the point...


5 posted on 05/07/2013 7:25:53 AM PDT by Laissez-faire capitalist
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To: Laissez-faire capitalist
We first have to stop borrowing. Then find a way to start paying down the debt from $16 trillion to 15 to 14, 13, etc.

DRILL, BABY, DRILL. Drilling on private land will lower the debt and the government can't stop it. Oil - the 21st century gold rush.

6 posted on 05/07/2013 7:49:35 AM PDT by stars & stripes forever ((Blessed is the nation whose God is the Lord!))
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To: Laissez-faire capitalist

does anyone believe that the interest rates will stay this low? When, not if, they rise we will not be able to pay them. Average rates have been between 4 and 5 %


7 posted on 05/07/2013 9:34:35 AM PDT by americanbychoice3
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