Here it is…all their screaming about how Obamacare is the law of the land and if we don’t give them everything they want then on the 17th of October we are going to default on the debt. Combine that fallacy with the catch phrase, “raising the debt limit is so we can pay the bills we’ve already incurred” and “the Republicans are holding the people hostage” and you have some great news bites for the lapdog media but not a whole lot of truth. You want some truth, THE DEBT CEILING IS THE LAW OF THE LAND….whaaaa!? The debt ceiling was passed as law along with the Second Liberty Bond Act of 1917.
Under Article 1 Section 8 of the United States Constitution, Congress has the sole power to borrow money on the credit of the United States. From the founding of the United States until 1917, Congress directly authorized each individual debt issuance separately. In order to provide more flexibility to finance the United States’ involvement in WWI, they modified the method by which it authorizes debt in the October 1 bond act. Under this act Congress established a limit, or “ceiling,” So Obamacare is the law of the land, but republicans would like some tweaks….and the Debt Ceiling is the law of the land, and has been for much longer than Obamacare, and the President is demanding changes…so why can’t there be compromise? And yet when they fail to give him what he want he trots out the default argument.
The only way the United States goes into default on the 17th of October is if we fail to pay the interest on the PUBLIC DEBT. That is all. The Congressional Budget Office has predicted that debt to be $237 Billion for FY14. The government is expected to bring in a revenue of just over $3 Trillion dollars this year. ($3.042 Trillion).
Let us math this for those in power. $3.042 trillion – $237 billion = $2.805 trillion. We pay that interest first and we have no problems, we also end up with $2.805 trillion left to spend, default is out of the question, and we haven’t raised the debt ceiling. Well say we look at what is left since we have al that money. I guess we give some to the piles of dependant people on Social Security ($848 B), Medicare ($505 B), and Medicaid ($298 B), since most of those entitlements are bound to law. Then we can finance the Defense ($582 ) and the Veterans dept ($83) that comes to about $2.3 T….leaving us with half a trillion in the bank. I guess that can be used for pet projects, national parks, EPA, IRS, etc, etc. you know, run the essentials of government.
Time to tell your Congress people to get their crap together and balance the damn budget. We have a spending problem and it is time to reign it in before we destroy the country under the mountain of debt we’re creating. Shrink the government, allocate the resources towards paying down our crippling debt and make America a more financially sound nation. Time to stop the catch phrases and engage in actual leading of the people instead of pandering to the extreme base. Unless that is, they want the country to fail?