Is there a Glass Debt Ceiling? - Granite Grok

Is there a Glass Debt Ceiling?

If you are looking for some thoughts on the idea of default the New Media Journal is a good place to start. Frank Salvato, managin editor, opens with this and then procees to expaling.

I roll my eyes at the term “debt ceiling default crisis” because the honest man – an increasingly rare species in federal government – understands that there can only be a crisis should President Obama choose to create one. 

 …

According to the Daily Treasury Statements, approximately sixty percent of every dollar gleaned by the US government comes to it in the form of revenue generated by taxes. This amounts to roughly $200 billion a month. Given that the debt interest due per month is approximately $29 billion, even a third grader from an under-achieving inner-city Atlanta public school can deduce that there is absolutely no possibility of the United States defaulting on its debt interest payments.

Take a few minutes and read it all.  Taken with other news about the rhetoric being used to manufacture a crisis, you’d hope it would add some spine to the Republicans if they admitted that a default is impossible.  There really is no risk of default.  Social security will stay solvent.  We suspect Obama is having backroom meetings with bankers to reassure them in private while he cries crisis in public.  And there is plenty of evidence that there are ample funds to pay for the important things, just not enough to borrow to pay for everything the government thinks it has to do.

But with remarks like this from folks like Tom Sowell, I think we shold expect the Boehner plan to limp into the Senate where the democrats will expose it to their radiological will, mutating it into something else entirely.  What slithers back, or into a committee of conference, in the waning hours will probably cut nothing and simply add debt.

At that point the House would be stuck with the redheaded step child of debt ceilign bills and a ticking clock with which to address it.  What will happen?

Obama says he won’t sign anything if Harry Reid hasn’t unrinated all over it, and we know Reid and the democrat Senate is running cover for Obama so he isn’t forced to lead.  They call this compromise.  I call it a sign.  A sign that we need to fire Obama and Reid and the lot of leftists who think that the answer to too much debt is more of it. That and end the crisis du jour scare tactics the democrats who still have a strangle-hold on Washington employ to scare anyone and everyone who dares cut a dime.

 

add this.

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