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Not raising the debt ceiling is far from the end of the world. This is a point that FreedomWorks has already made, most recently by Dean Clancy just last week.
Now comes President Obama, claiming that failure to raise the national borrowing limit by August 2nd will result in the US Government defaulting on its debts, and thus causing global bond markets to lose faith in the U.S. Government's ability to repay its creditors, and thus setting off a panic that results in higher borrowing costs for Uncle Sam, and thus precipitating a Greece-style economic crisis and perhaps political turmoil.
Sigh. Where to begin!
The truth is, the IRS collects 10 times the amount needed to pay all the interest we owe to all our creditors indefinitely, and more than enough to pay the principal as well.
Today, Lori Ann LaRocco at CNBC published an interview with Rep. Jeb Hensarling, Chairman of the House Republican Conference and Vice Chairman of the Financial Services Committee. In the interview, they discussed the Congressional Research Service's presentation on what it would actually look like to hit the debt ceiling.
But the bottom line is we all know this is a nation that is on the precipitous of a financial debt crisis and it is the spending that is driving the debt crisis. It is not a vote on a quote on quote debt ceiling. We all know that the Treasury secretary has recently called for a naked increase on the debt ceiling again.
We don't think its supported by either side of Congress much less the American people so there will be a vote to show the administration you need to have some sort of hurdle when it comes to this type of spending. History will show us from time to time it will work moderately well for five to six years, and then Congress falls off the wagon. Unfortunately this is different. We need to seize on this moment today and deal with it.
This is a political bargaining chip. Preach apocalypse so they can continue what they're doing with absolutely no accountability. If they manage paint the opposition as extreme, Chuck Schumer style, if gives them a chance to marginalize those that disagree with the administration.
They have no budget, no plan to avert to coming debt crisis, and no plan to save Medicare. Not one Democrat was even able to rally behind the President's budget, because their plan is to not have a plan. They'd rather keep running forward, full speed ahead, with no road blocks. This debt ceiling vote is an opportunity to draw a line in the sand. If the President wants his initiatives funded, someone has to pay for them, and Rep. Hensarling is saying the House Republicans are ready to make sure America's bills are paid on time.