Today from CBS:
Mr. Obama…called on Congress to extend the nation’s borrowing authority beyond the current $16.7 trillion limit. Republicans have asked for negotiations…Mr. Obama reiterated a promise to negotiate…only after the government is reopened and the debt ceiling increased.
“We’re not going to negotiate under the threat of further harm to our economy,” he said.
But who is the one actually harming, or threatening to harm, our economy? Answer: President Obama.
First, there’s Obamacare which, as is widely discussed/known, is presently killing people’s insurance plans, job hours, and more. The GOP should refuse to negotiate under the continuing threat of economic harm from Obamacare.
“As reckless as a government shutdown is … an economic shutdown that results from default would be dramatically worse…”
So, in Obama’s mind, hitting the debt ceiling means automatically that the U.S. shall default on its national debt. But, in reality, default is a choice. You are only in default when you stop making your minimum debt payments. Our ongoing tax revenues of about $2.3 trillion per year are many times greater than needed to make our minimum debt payments.
The deficit is now about $700 billion per year, or roughly 23% of spending. Obama can avoid default by simply under-spending the budget that much. That percent less on federal salaries, Social Security, Medicare, defense, discretionary items and Obamacare all together.
It would be painful for some, but as far as the laws of the Universe are concerned, it’s entirely possible. It could be done. If Democrats are as constructive and helpful as they want the rest of us to believe, they could help minimize or remove the obstacles.
So let’s be clear: When Obama or his minions talk about the dangers of default, they’re actually threatening America with the optional default that they would choose to impose – because they are so far opposed to under-spending any part of the federal budget.
In doing so, they signal the world that U.S. credit is not trustworthy. They signal that, if the U.S. ever has a serious budget crisis, U.S. debt holders will be screwed first of anyone; that Obama & co. intend to hold U.S. bond owners in lower priority than anyone or anything else in the federal budget.
That damages our economy. Conclusion: The GOP should refuse to negotiate under Obama’s (needless) threat of default.
I know that refusal is not going to happen; the GOP feels it’s best to stress their willingness to negotiate. But if the world were more sane – or, at the very least, if the GOP were something more like Obama and the Democrats are – it would happen.