These United States will not default on our debts…period! We go through this unnecessary angst every time there is an impasse between Americans who wish to run a fiscally sound government on one side, and leftist Democrats along with their RINO enablers on the other. What saddens me even more, is when I hear folks on our side, both politicians and pundits, continue to use the D-word as if it is a real possibility.
Over at Red State, more than one of my former colleagues, refer to “possible default,” In her article, BREAKING: Biden Caves, He and McCarthy List Points of Agreement, Take Possibility of Default off the Table, my friend and former colleague, Nick Arama notes:
It sounds like President Joe Biden and House Speaker Kevin McCarthy have resolved one crucial point on the debt negotiations. They’ve reached the most important agreement — they will avoid a default and take that option off the table.
Let’s be clear, default was never on the table. Down in the comments of Arama’s post, a reader notes:
What do you mean by “avoid a *default*”? Per a WSJ article as referenced here —
there will not be a default on debt because sufficient revenues are coming in to more than cover the debt, and the debt comes first.
So, it appears that “default” is being used sloppily by a lot of writers.
By a lot of writers and politicians–who should know better. In accordance with the U.S. Constitution about money matters beginning in the House of Representatives, Speaker Kevin McCarthy has sent a bill to the U.S Senate that funds the Federal government. The bill also raises the debt ceiling while making some very modest cuts to the overall budget.
However, under orders from whoever is pulling the strings of the doddering old man in the Whitehouse, Majority Leader Schumer is refusing to even consider bringing the bill up for debate. The Democrat position is that before any budget discussions, they want a “clean” bill to raise the debt ceiling. Failure to do that they warn, will result in the United States defaulting on its debt obligations.
I’m throwing the BS Flag on this play. I’m not alone. It appears that some writers other than blog commenters, are starting to get the message. Over at The Daily BS, run by former Rush Limbaugh wingman, Bo Snerdley they say:
At the heart of all fearmongering over the debt ceiling “crisis” is the claim that if the federal government can’t borrow more money it won’t be able to pay interest on its existing debt, leading to a default.
But that’s poppycock. The government will collect more than a trillion dollars over the next three months. (It collected $638 billion in taxes in April alone.) That will be more than enough to pay interest on the debt. And it will be enough to pay all Social Security benefits, Medicare and Medicaid bills, welfare checks, food stamps. There will even be enough money to pay for Joe Biden’s new electric car subsidies.
There just won’t be any money left for anything else. Nothing for the military, infrastructure, education, the environment, law enforcement, or any other program the federal government currently operates.
That’s because, as it stands today, every penny collected in taxes goes to pay interest on the debt and a category described as “payments for individuals.” Everything else is paid for with borrowed money.
To put point on it, our nation has never defaulted on its debt before, and we won’t now. We have more than enough revenues to avoid default. Below are the only things that must be paid…and given the 14th Amendment, Congress has no choice but to pay those things first:
- Interest on the debt
- Federal Pensions (including military but not Social Security (thank SCOTUS for that one)).
- Work already done to date, by any federal employee or contractor.
All else is discretionary. In short, all of this is political posturing, much of which is driven by ignorance and/or venality, take your pick. The way ahead is fairly clear, if Democrats don’t wish to negotiate with Speaker McCarthy using the current House bill as a starting point, then the he should take a page from Vito Corleone and make another—lower offer. The Republican House should pass a spending bill that solely authorizes expenditure on the above debt items, while inviting the Democrats to negotiate raising of the debt limit for funding tradeoffs with the remainder (non-debt part) of the budget.
I don’t see that happening, but it sure would be nice. Another day, we will take up how the language/terminology being used in these discussions, is false to fact and actually hinders communication. More to follow
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