Re: Debt Default = Fiscal Conservatism?
posted at 10/8/2013 3:52 PM EDT
In response to A_Concerned_Citizen's comment:
In response to Hansoribrother's comment:
The conservatives in this case are in Congress, correct?
Default is not when the government does not pay its bills. Default is when it does not make a payment on interest due its lenders.
If the govenment decides not to pay social security benefits or to pay the bill on 100 million rounds of ammunition, is it in default? No.
So who is going to make the decision to make a payment on interest or make a payment on some other bill instead? It isn't Congress. It is Obama and Jack Lew.
Currently the government pulls in over $200 billion a month and has an interest payment of around $20 billion. There could be a technical default involving a matter of timing as to when revenue arrives and interest payment is due. That has already happened several times.
If we default, it will be a politcal move by the White House, not because of Congress. I would not put it past this two bit dictator we have there.
No one is trying to preserve the previous health care system. They are trying to prevent Obamacare from wrecking it even more and pushing the economy into another recession. Delays and repeal and replace have been suggested.
The hysteria invoked by Obama's refusal to negotiate is causing a rapid increase in Democrat Dimentia.
If the wingnuts force the federal gov't not to borrow to pay it's bills, it would most certainly percipitate a default.
A default happens when any legal contract is not paid on-time. It isn't just treasuries but all debts signed by the gov't or enshrined by law, such as Social Security.
All of the federal debt that has cumulatively pushed the country towards the debt ceiling is comprised of legally binding contracts that Congress has previously entered into by way of appropriations bills.
That means that failure to pay any of these contracts would put the US gov't in default. There is no ignoring the law.
Of course defaulting on some legal contracts rather than others may minimize the impact of a default but it is still a default, plain and simple.
And with regard to SS and Medicare, two programs that are mandated by law to be funded, defaulting on these would be illegal under US law.
And don't forget that 14th Amend that the wingnuts would be willing to ignore...
You are wrong. But that is no surprise.
Default is when the government does not make a payment on its debt obligations. Default relates to debt, not to other obligations to pay on some promise or a contract. If the government fails to make a payment to Lockheed for a jet fighter on time, it is not in default.
Aside from that, even if I took your ignorant notions to be true, COngress does not decide what bills to pay and what obligations it can cancel in order to avoid missing a debt obligation.
That is up to JacK Lew and Barack Obama.
If we go into default it will be on a purposeful political move by the Dear Leader.