Skip to comments.Did Treasury Just Strategically (Intentionally) Default?
Posted on 07/01/2011 5:09:35 PM PDT by The Magical Mischief Tour
It sure looks like they did.
Here's the DTS (daily cash statement) for Treasury.
And here's the problem with it:
Note that the pink line did not move much. In fact, it went down.
It should have gone up - a lot - because the "Trust Funds" (you know, Social Security and Medicare?) that you folks on the left keep bleating about being "money good" and "actual debt" had a coupon payment from Treasury due yesterday.
IT WAS NOT MADE.
IF IT HAD BEEN, IT WOULD HAVE BLOWN THE DEBT LIMIT.
That's a default, and it instantaneously destroys both the claim that such activity is not "selective" or, if you prefer, "strategic" and it also destroys the argument that Medicare and Social Security Trust fund "debt" - not just public debt - is subject to the 14th Amendment and thus is "protected" against the Treasury choosing to blow it off.
By the way if you're curious about how much this should amount to (~$90 billion, more or less) have a look at the June 30th, 2010 DTS statement.
Have a nice day.
But I thought socialist security ran out of a trust fund. Didn’t Harry Reid say so?
I appreciate your research. If I understand correctly, you are sting that the 14th amendment argument the Dems are peddling is without constitutional merit. I don’t understand how you arrived at this conclusion, but I welcome your feedback.
Of equal concern to me: on the FOX Panel tonight, Krauthammer was whining that GOP senators are terrified that, during a budget crisis that Obama would pick and choose which activities get funded consistent with his own political needs. The example they used was that Obama would withhold farm subsidy and food inspection payments to hurt GOP senators in midwest states, since he isn’t likely to do well there in 2012. This is what does not make sense to me: there are 3 RAT senators (Tester, Nelson, McCaskill) who are facing brutal re-elections and would be equally or worse battered by an interruption in food safety enforcement. Plus, this activity would drive food prices higher nationwide, angering everybody.
So, unless Obama can selectively decide which states get food safety enforcement that correspond to states with Dem senators, I don’t see the upside potential — and even that is high-risk game.
Anybody understand what this is all about? I wish our people on the Hill and in think tanks would start playing out these scenarios so that we can prepare for WAR. The best way for the GOP to win this battle is to preempt every game that Obama will play.
I am hopeful that Obama is stupid ebough to withhold seniors SS checks, because we can prepare seniors weeks in advance and then the stunt will boomerang.
We are being destroyed and these GOPS are worried about their political posture. FIRE THEM>!
That is not the point. We cannot win this battle if the GOP doesn’t stick together, House and Senate.
I am trying to sort out what Obama, Reid and Schumer are plotting.
they got the money for the payments out of the lock box
Well the the Battle is lost. Abandon Ship.
Was there suppose to be some kind of picture or chart? All I see is a blue box with a “?” in it...
Anything he might do now will be worse in the future if we don’t stand up to him now.
Default won’t occur until someone tries to cash in a T-bill and is denied payment.
Yes. There's a table from something called the Daily Treasury Statement.
The GOP in Congress doesn’t have the best track record of “holding together” when the going gets tough. OF course, with the likes of RINO-queens like McCain, there is little hope of them REALLY holding out.
I also see China possibly selling $1T worth of US treasuries upon our default. That will throw gasoline on the fire. China will be hurt. They will hurt themselves. But they will destroy the world's only other superpower, and they will do it without having to fire a shot.
It's similar to what we did to Gorbachev and the Soviet Union.
When this happens, how does the president explain it to the nation?
Geithner just threw grandma under the bus.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.