The Arrogantly Reckless President Obama On the Obligations Of U.S. Debt
The Arrogantly Reckless President Obama On the Obligations Of U.S. Debt
Constitutional Principles
Dollar Collapse
Economy
Sound Money
Oct 7, 20133 468
By Jean Paul Zodeaux
If you take President Barack Obama’s word for it, he is just a helpless bystander in an absurd game of political brinkmanship over the debts and obligations of the U.S. federal government. The president has put out a consistent message during this budget debate that he has nothing to do with it and the whole problem belongs with Congress, but the presidents Cabinet member Jacob Lew, the Secretary Treasure was on CNN’s “State of the Union” Sunday is telling the world that the U.S. is close to defaulting on its loans. This is the loud and clear message the Obama Administration has put out to the world, which includes this nations creditors, that come the 18th of October, Jacob Lew, the Secretary Treasurer say’s we can’t pay our bills. What do you think that message is doing right now to the value of the U.S. dollar?
It is foolish and irresponsible to put a public message, Lew made the rounds on the Sunday media circus so it is arguably a public campaign to put out a message that the U.S. will default on its loan if the debt ceiling isn’t raised by October 17th. Consider Lew’s response to Candy Crowley of CNN when she asks what happens on October 18th if the debt ceiling isn’t raised:
“Well, it’s a very good question, Candy. And just to be clear, we crossed the debt limit in May. Since May, we’ve been creating some room to borrow by using what are called extraordinary measures. They’ve been used so many times. They’re not as extraordinary as they used to be.
Tuesday I wrote to Congress saying I used my last extraordinary measures. I have no more. That means that on October 17th, we’ll run out of the ability to borrow. We’ll be left with some cash on hand. And, I’ve told Congress it will be roughly $30 billion.
And $30 billion is a lot of money. But when you think about the cash flow of the government of the United States, we have individual days when our negative or positive cash flow is 50 or $60 billion. So, $30 billion is not a responsible amount of cash to run the government on.”
Lew told Crowley and anyone paying attention that come October 17th the federal government will lose its ability to borrow. He also claimed that there will be only $30 billion on hand to pay the bills, but later when Crowley asks Lew if it wasn’t as simple as simply paying the interest on the debts while the budget is worked out, Lew responded by deflecting:
“Candy, I got to tell you that anyone who thinks that the United States government not paying its bills is anything less than default hasn’t thought about it very clearly. Let me ask you a question. Let me ask you, what happens if we’re not able to pay Social Security? What happens if we can’t pay disability and veterans payments on time?”
So the short answer would be “Well, yes Candy we can pay the interest on the debt in the meantime”, but instead Lew got evasive. I got to tell Jacob Lew something, anyone who thinks they can lawfully or legally declare a default on a debtor who has been diligently paying the interest on that debt hasn’t thought about it very clearly, and as their attorneys will tell them, as long as the debtor is paying the interest on the loan, there is no default. Blacks Law Dictionary defines “default” as such:
The omission or failure to fulfill a duty, observe a promise, discharge anobligation, or perform an agreement.
It is not the duty of the United States of America to keep borrowing money in order to pay off a debt using debt currency that couldn’t possibly pay off the debt anyway. One of the most bizarre aspects of the tax, spend and increase the debt advocates, and they are legion, is their complete unwillingness to even speak to the elephant in the room. What happens when the debt overwhelms the gross domestic product? What happens when what is earned is so far under what is owed that the only possible outcome is default? Instead they evade the question and start giving dire warnings about all the bad things that will happen if we don’t keep borrowing money. In fact, back in July, talking to the same host Candy Crowley on “State of the Union”, when Crowley asks about the debt ceiling, Lew answers:
“You know, I think Washington pays entirely too much attention to trying to figure out the day we run out –”
The fact of the matter is that Washington doesn’t pay any attention at all to the day when we run out of money, and their answer to stalling this inevitability is to just keep doing more of what we did to put ourselves in this situation to begin with and let’s not pay attention to the day we run out — at some point the outrageous debt this nation has incurred has to be payed, and borrowing more money to pay what is owed now is not by any stretch of the imagination the way to pay off the debt. Fundamental changes to the bloated budget are going to have to be made, and at some point we as a nation are going to have to take a hard look at our fiat currency and determine whether a devalued currency is the best kind of currency to incur debts with.
There’s no reason for the federal government to default on its loans in the event the debt ceiling doesn’t get raised, and what is the point, really, of having a debt ceiling if it keeps getting raised? Of course, the tax, spend and borrow crowd are asking that very question, but are asking why we need a debt ceiling. That the federal government has managed to take us into nearly $17 trillion in debt should be the clear and obvious reason as to why a debt ceiling is necessary. A federal government that can so whimsically expend money to place law enforcement around open air memorials and other areas with ease of access during a government shutdown is the result of being spoiled. The federal government is the people’s child, and it has been given a credit card with way to high of a debt limit to begin with, and it is time for mommy and daddy to take the credit cards away and start teaching our child the importance of fiscal responsibility.
Parents who listen to their children’s horror stories of no milk and cookies without a raised debt ceiling are only asking for trouble. Parents can play along with a child’s imaginary friend, but when that child starts demanding an allowance, clothes and food for that imaginary friend it’s time to start bringing that child back to reality. It is time for the United States to grow up and start acting like grown adults who accept responsibility for their actions and nobly suffer the consequences of their mistakes thereby limiting any future mistakes. It’s time to take the credit card away from the spoiled brat that is our federal government and demand they grow-up and start acting like sane adults.
Raising the debt ceiling is not the sane adult thing to do. Figuring out how to reduce the debt is. Borrowing more money will not reduce the debt. These are the truths the tax, spend and borrow crowd don’t want you to talk about.
http://collapse.com/jean-paul/2013/10/07/id469.htm
