posted on Oct, 14 2013 @ 10:00 PM
Sen. Tom Coburn, a shining example of intellectual acuity, said early this week: “I would dispel the rumor that is going around that you hear on
every newscast, that if we don’t raise the debt ceiling, we will default on our debt. We won’t. We’ll continue to pay our interest.”
He made this blatantly crazy statement with a straight face. As economist Robert Reich explained on his blog: “While the Treasury Department could
prioritize interest payments after October 17 – the day the Treasury Department says it no longer has legal authority to pay the nation’s debts
– and not pay Social Security and Medicare, this would buy a few days at most.”
Meanwhile, interest rates will soar, stock prices will plummet, the global economy will begin spiraling downward, and millions of Americans wouldn’t
receive their Social Security and Medicare.”
OK I don't know where you get this crap but they need to check their facts. This statement is 100% correct, and it is pathetic that you are so
ignorant you believe it to be a false statement.
Here is how it works, by law the federal government must pay the interest on debt first - it takes precedence over everything, including social
security, medicare etc. The interest on the national debt is a little over 300 billion a year. We take in 2.7 trillion in tax income per year.
We can EASILY pay the interest on the debt from our taxable income without raising the debt limit. We do not pay any money towards principle nor have
we for decades.
Now I got news for you - whether you like it or not entitlements are going to be cut, because we simply cannot afford them and like it or not military
spending is going to be paid for first. Notice your beloved Obama hasn't made any cuts to it despite running the largest deficits in history.
Now if you really think we will be able to continue to just raise our debt outstanding forever without any consequences you are as dumb as a box of
rocks. The only reason rates have not skyrocketed - is because the federal reserve is literally buying 90%! of the outstanding bond sales to keep the
rates down. This will not work for much longer and in fact rates are beginning to rise in spite of this insane hopeless tactic. Even if it does keep
rates down which it won't, inflation is going to get out of control quickly.
You can tell how desperate they are getting by preemptively shouting raise the debt limit or there will be a world Economic catastrophe. Now think
logically - if you can - how can a few hundred billion dollar extension of the debt limit avoid world catastrophe when the world is already 30+
trillion in debt and no one is paying a cent towards the principal?
The answer is of course it can't fix anything it can only delay the catastrophe for a little while longer. Continuing to pretend the problem will go
away is not going to accomplish anything.