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Hmmmm... WaPo contradicting Obama's and the Dems' wailing and teeth-gnashing hysterics?
Quote:
The memo offers a starkly different view of the consequences of congressional inaction on the debt limit than is held by the White House, many policymakers and other financial analysts. During a press conference at the White House Tuesday, Obama said missing the Oct. 17 deadline would invite “economic chaos.”
The Moody’s memo goes on to argue that the situation is actually much less serious than in 2011, when the nation last faced a pitched battle over the debt limit.
“The budget deficit was considerably larger in 2011 than it is currently, so the magnitude of the necessary spending cuts needed after 17 October is lower now than it was then,” the memo says.
Treasury Department officials did not immediately respond to requests for comment.
The debt limit only limits how much debt Congress can accumulate. It does not prohibit them from spending exactly the same amount of revenues as they spent the previous year. A debt limit only prohibits Congress from deliberately spending more than projected revenues allow, thus adding further to the National Debt.
This is a completely alien concept for Democrats who have never once, in their 185 years of existence, ever passed a budget that did not further increase the National Debt. Only Republicans have ever passed a budget that was either balanced or produced a surplus.
Democrats and the President are demanding that they be allowed to put the nation further into debt. Democrats apparently enjoy destroying the future of our children with their deliberately irrational debt. The President is even throwing a childish tantrums in order to get his way. The Republicans are saying "no."
Leave the debt limit alone. Let the nation run on the exact same revenues it received last year. There will be no default, but the government programs started by Democrats that were never paid for will be terminated.
Moody's rated junk mortgages AAA before our economy tanked in 2008. These junk mortgages were bundled with legit AAA mortgages and everything turned to crap. I would take anything Moody's says with a grain of salt.
The memo is technically correct. However, it leaves out one key point.
In the event we don't raise the debt limit, then TREASURY, with guidance from the President, will decide what bills don't get paid. In that case, they will chose to protect Democrat priorities. Anticipate ALL of the cuts will come from GOP interests and GOP districts. For example, expect to see entire military programs cancelled, with bases in the "reddest" states shuttered. Another option would be to simply not pay Medicare or VA benefits to registered Republicans living in the most conservative congressional districts. To whom are they going to complain?
The Tea Party will finally get their wish of government cuts, but on the Democrat's terms.
The debt limit only limits how much debt Congress can accumulate. It does not prohibit them from spending exactly the same amount of revenues as they spent the previous year. A debt limit only prohibits Congress from deliberately spending more than projected revenues allow, thus adding further to the National Debt.
This is a completely alien concept for Democrats who have never once, in their 185 years of existence, ever passed a budget that did not further increase the National Debt. Only Republicans have ever passed a budget that was either balanced or produced a surplus.
Democrats and the President are demanding that they be allowed to put the nation further into debt. Democrats apparently enjoy destroying the future of our children with their deliberately irrational debt. The President is even throwing a childish tantrums in order to get his way. The Republicans are saying "no."
Leave the debt limit alone. Let the nation run on the exact same revenues it received last year. There will be no default, but the government programs started by Democrats that were never paid for will be terminated.
If this is true, why then was the debt ceiling raised 7 times during the Bush presidency and 18 times during Reagan's?
Another bit of trivia: the only administration during which the debt ceiling was not raised was Truman's.
Care to remind us which party he belonged to?
As for the OP, I noticed that the memo stated that the budget deficit is lower now than it was in 2011.
(“The budget deficit was considerably larger in 2011 than it is currently, so the magnitude of the necessary spending cuts needed after 17 October is lower now than it was then,” the memo says.")
Just wondering if the OP and others trumpeting this memo accept this as fact and if so, how does that jibe with the constant refrain of the President's unbridled spending?
” We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact,” the memo says. “The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasury’s extraordinary measures to raise funds) and a default.
Can all U.S. citizens write the bold above on the chalkboard 100 times please?
If this is true, why then was the debt ceiling raised 7 times during the Bush presidency and 18 times during Reagan's?
Another bit of trivia: the only administration during which the debt ceiling was not raised was Truman's.
Care to remind us which party he belonged to?
As for the OP, I noticed that the memo stated that the budget deficit is lower now than it was in 2011.
(“The budget deficit was considerably larger in 2011 than it is currently, so the magnitude of the necessary spending cuts needed after 17 October is lower now than it was then,” the memo says.")
Just wondering if the OP and others trumpeting this memo accept this as fact and if so, how does that jibe with the constant refrain of the President's unbridled spending?
You seem to have forgotten that it is Congress that spends, and the House that originates budgets, not Presidents. In the last century there were two occasions where Congress had three years of budget surpluses. On both occasions the Republicans controlled the House, while a Democrat was President. From 1947 to 1949, and again from 1998 to 2000.
When the debt ceiling was raised it is the House of Representatives saying they are incapable of balancing a budget and must spend more than projected revenues will allow. Which political party was in control of the House during these previous debt ceiling increases? And more importantly, why did they feel it was necessary to further increase our nation's debt?
As to this fiscal year's budget being smaller than 2011, it does not surprise me in the least. If you recall, the Republicans took back control of the House from the irrational Democrats after the 2010 election. After their 2007-2010 abysmal fiscal efforts, the Democrats will be lucky if they get another shot at taking the House in another 14 years. That was how long the GOP controlled the House before Democrats took control for 4 years, then promptly lost it.
The memo is technically correct. However, it leaves out one key point.
In the event we don't raise the debt limit, then TREASURY, with guidance from the President, will decide what bills don't get paid. In that case, they will chose to protect Democrat priorities. Anticipate ALL of the cuts will come from GOP interests and GOP districts. For example, expect to see entire military programs cancelled, with bases in the "reddest" states shuttered. Another option would be to simply not pay Medicare or VA benefits to registered Republicans living in the most conservative congressional districts. To whom are they going to complain?
The Tea Party will finally get their wish of government cuts, but on the Democrat's terms.
You are coming very close to selling me on it. If this actually happened, I would be all for it. Except for the little fact that it would also damage the U.S.'s creditworthiness. Still, if it ends up happening and this is how it plays out, I won't complain. Let the people who put these fanatics in office feel the consequences of their vote.
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