Why does everybody keep using the word “default”?
The Dems use it to scare people and the GOP seems to believe the majority of Americans are too stupid to understand basic math.
Rand Paul explained it perfectly last week:
The US takes in approximately $270B per month in various types of revenue. The interest on bonds and to creditors which MUST be paid first per the Consitution before any other debts, totals about $30B. That leaves $240B left to fund entitlements, enough to fund Social Security/Medicare in it’s entirety, Veteran’s benefits, and most, if not all, unemployment compensation. Then from there, it’s a priority game in determining how to spend the remaining few billion.
But the bottom line is that if the debt ceiling is not raised, the US can and will continue to pay it’s MANDATORY debts. Failing to pay an “entitlement” program is NOT a “default”.
Yes. We pay our creditors first. That is my understanding.
And money is flowing into D.C. from us.
But when was a “crisis” never not exploited by the Left?
Another way of looking at what is going on here is that Obama and the Ruling Class in D.C. have maxed-out our credit card and Obama is threatening to not pay the bill unless his credit limit is raised.
So he will threaten that he will not pay the bill, and then he will announce that he will raise his own credit limit as he sees fit, so he can continue to charge on it.
Or he will threaten that we will not pay our bills if our credit limit is not raised and the country will suffer for lack of a limitless charge card and thus women, children and minorities will starve to death because of evil Conservatives who won’t let him raise our credit limit.
I think boehner et all know this.
They continue the charade b/c if time does indeed come where the prioritization occurs, it’ll be like sequestration and like the gov’t shutdown ie no big deal.
What will be the big deal will be negotiating on those last few billion :)
And of course there is always this to fall back on... ;-)
http://www.youtube.com/watch?v=q6vi528gseA