Posted on 10/10/2013 3:53:01 PM PDT by jazusamo
Debt Talks: When Treasury Secretary Jack Lew repeatedly says the government has no choice in paying its bills if the debt ceiling is breached, he must surely know it's not true. So why say it? In a word, politics.
As the nation's chief financial officer, the Treasury secretary has an enormous responsibility to shoot straight with the American public about the state of our finances. So does President Obama, for that matter.
But when it comes to the political dispute over raising the debt ceiling from its current $16.7 trillion, Lew unfortunately has not leveled with us.
Opting for political pressure over the truth, he has misinformed and unnecessarily frightened the public to help his boss gain leverage in debt talks with congressional Republicans.
Lew told CNN's "State of the Union" show last Sunday "there is no option preventing us from being in default if we don't have the cash to pay our bills."
No option? In reality, we have more than enough cash to pay our debts. Revenues flowing into federal coffers exceed our debt payments by nearly 12-to-1.
Sure, if we breached the debt ceiling, we would have to cut federal spending elsewhere and shut down some unnecessary functions of government — a kind of Super Sequester. But our debts would be paid.
(Excerpt) Read more at news.investors.com ...
We will only default if they prioritize debt payments below appropriations.
Will Obama do that? Who knows?
Rand Paul mentioned that the federal government is raking in $250 billion per month. A default threat is just Obama playing politics (what else is new).
Wouldn’t surprise me if the turkey does it on purpose if thinks he can benefit from it.
Obama and the Treasury will not ignore debt payments. Yes, they would divert funds from other recipients. Why? Because if they missed debt payments the interest rate would SKYROCKET likely to 20% or more as indicative of their willingness to repay bond debts. And those rates would kill all the pork feeding troughs of Fed Gov Gimmedats buy-some-votes programs these politicians live on.
They’re bluffing on both the funding and debt ceiling. Answer this. Which party and its constituents is most dependent upon government spending and handouts? There ya go. They will cave. Otherwise they have nothing to offer their constituents.
All they have are lies and debt left to offer. Time to cut them off.
What you say is logical and rational... if Obama is logical and rational, and wouldn’t instead prefer to assert control directly because of civil disorder. I don’t know what’s in his mind, but it is hard for me to put anything past him.
Finally, the truth is getting out. The only reason default happens is gross negligence or because His Petulance decides to default.
Ask yourself a question. Wouldn’t you expect to see some signs of panic in the markets if default were really on the table?
Nothing of the sort is happening. This is all political BS intended to sway the financially illiterate.
“And those rates would kill all the pork feeding troughs of Fed Gov Gimmedats buy-some-votes programs these politicians live on.”
Failing to raise the debt ceiling means an instant balanced budget if they don’t default, instant balanced budget if they do default. That’s why the left is squealing so loudly over raising the debt ceiling.
“Wouldn’t surprise me if the turkey does it on purpose if thinks he can benefit from it.”
He could. But I don’t think he will. His bankster cronies wouldn’t allow it.
To use a poker analogy, our side is holding a flush. Could you lose to a better hand? Sure. But if you were prudent, you’d want to play that hand. You wouldn’t fold.
You’re correct of course. I just get so frustrated with this turkey, I guess I’m frustrated because he was actually reelected.
“I’m frustrated because he was actually reelected.”
It’s very difficult to fix other people’s stupidity.
Try to get that word out over the cacaphonic din of the screeching “news” media about the sky falling.
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