Debt Ceiling: Worst-Case Scenario

[M.D. Rawlings]

July 12, 2011
By Randall Hoven
American Thinker


Excerpt:

Personally, I think a lot of areas could use some cutting. Maybe we fiscal conservatives should not let this crisis go to waste. Now could be a great time to get rid of the Departments of Education and Energy and virtually eliminate their budgets. Now could be a great time to throttle back on the intrusive police powers of the DEA and BATF. Now could be a great time to get the federal government out of market manipulation in housing and other "commerce", and end a lot of crony capitalism and corruption by taking some piggy banks away from bureaucrats.

The trouble is that the decisions on where to cut would come from the Treasury Secretary and ultimately President Obama. At least that is how I understand the process, which is fraught with legal and constitutional uncertainties.

That is, the real danger is not in the debt ceiling itself, but in giving Obama the power to cut $1.1 trillion however he pleases. Obama could very well decide to not make interest payments, thus defaulting. He could decide to not pay our military men and women. He could decide to short-change seniors dependent on government pensions. In short, he probably could bring about financial Armageddon with a few strokes of his autopen.

LINK

 

[Wiseacre]

If Obama did as the article suggests, he'd be pilloried from pillar to post and run out of town. Ain't happening, IMHO the real worst case if the debt ceiling is not raised is the effect it would have on our economy and around the world. Even if the US Gov't continues to pay the interest on it's debt, the fact that we could not find a way to raise the ceiling could be a serious blow. Look at how many more people, public AND private, would lose their jobs. I would say a double dip recession or even a depression could occur, or at least a risk thereof.

 

[Truthmatters]

I am begining to believe the republicans want us to go into a depression.

 

[martybegan]

If Obama did as the article suggests, he'd be pilloried from pillar to post and run out of town. Ain't happening, IMHO the real worst case if the debt ceiling is not raised is the effect it would have on our economy and around the world. Even if the US Gov't continues to pay the interest on it's debt, the fact that we could not find a way to raise the ceiling could be a serious blow. Look at how many more people, public AND private, would lose their jobs. I would say a double dip recession or even a depression could occur, or at least a risk thereof.

He's already fired a shot across the bow trying to put all the blame on the House:

Taxes, Social Security fears cited in debt ceiling talks - CNN.com

He's going for the "scare old people" tactic that democrats use so well.

 

[Zoom-boing]

I am begining to believe the republicans want us to go into a depression.

we're already there

 

[DontBeStupid]

That is, the real danger is not in the debt ceiling itself, but in giving Obama the power to cut $1.1 trillion however he pleases.

Blah blah blah. This "fear the black man" crap is getting really old.

There is real danger in us not raising the ceiling. But danger for regular people not the wealthy. Why? Well, when we hit the ceiling and stop making payments (whatever payments those may be) our credit rating will be cut. When its cut, our interest rate will go up. This means it will now be way more costly for us to borrow. We will eventually have to borrow, and whoever lends us the money will get a nice fat interest payment.

Who has lots of money to lend the government? The rich.

If anyone thinks this is not a golden opportunity to milk the taxpayer, then they're kidding themselves.

 

[Mustang]

July 12, 2011
By Randall Hoven
American Thinker


Excerpt:

Personally, I think a lot of areas could use some cutting. Maybe we fiscal conservatives should not let this crisis go to waste. Now could be a great time to get rid of the Departments of Education and Energy and virtually eliminate their budgets. Now could be a great time to throttle back on the intrusive police powers of the DEA and BATF. Now could be a great time to get the federal government out of market manipulation in housing and other "commerce", and end a lot of crony capitalism and corruption by taking some piggy banks away from bureaucrats.

The trouble is that the decisions on where to cut would come from the Treasury Secretary and ultimately President Obama. At least that is how I understand the process, which is fraught with legal and constitutional uncertainties.

That is, the real danger is not in the debt ceiling itself, but in giving Obama the power to cut $1.1 trillion however he pleases. Obama could very well decide to not make interest payments, thus defaulting. He could decide to not pay our military men and women. He could decide to short-change seniors dependent on government pensions. In short, he probably could bring about financial Armageddon with a few strokes of his autopen.

LINK

Tell me, are there ANY conservatives who still inhabit the reality-based world in which the rest of us live every day?

 

[M.D. Rawlings]

Note the insanity from our leftist friends. It never ends with these nutcases.

The interest on the debt will be serviced either way; there is no automatic default . . . unless of course Obama doesn't apply available revenue to it. It's up to him. It's also up to him to stop playing games and get real about cuts without increased taxation. The problem is not revenue, it's spending.

The people are with the House. They don't want the ceiling raised without real cuts, and they don't want taxes raised on anyone.

The American people just ain't buying Obama's shoe shine anymore.

 

[Toro]

July 12, 2011
By Randall Hoven
American Thinker


Excerpt:

Personally, I think a lot of areas could use some cutting. Maybe we fiscal conservatives should not let this crisis go to waste. Now could be a great time to get rid of the Departments of Education and Energy and virtually eliminate their budgets. Now could be a great time to throttle back on the intrusive police powers of the DEA and BATF. Now could be a great time to get the federal government out of market manipulation in housing and other "commerce", and end a lot of crony capitalism and corruption by taking some piggy banks away from bureaucrats.

The trouble is that the decisions on where to cut would come from the Treasury Secretary and ultimately President Obama. At least that is how I understand the process, which is fraught with legal and constitutional uncertainties.

That is, the real danger is not in the debt ceiling itself, but in giving Obama the power to cut $1.1 trillion however he pleases. Obama could very well decide to not make interest payments, thus defaulting. He could decide to not pay our military men and women. He could decide to short-change seniors dependent on government pensions. In short, he probably could bring about financial Armageddon with a few strokes of his autopen.

LINK

This isn't even close to being the worst case scenario. Not only is it not even in the same ballpark, its not even in the same city, state, country or even continent.

The worst case scenario by far is a default which triggers a serious of events which causes the financial system to implode, and makes the Lehman-induced collapse in 2008 look like child's-play.

I cannot believe the politicians would be this fucking stupid to play chicken with this. But today, we started looking at ways of protecting ourselves if this happens.

 

[Toro]

Note the insanity from our leftist friends. It never ends with these nutcases.

The interest on the debt will be serviced either way; there is no automatic default . . . unless of course Obama doesn't apply available revenue to it. It's up to him. It's also up to him to stop playing games and get real about cuts without increased taxation. The problem is not revenue, it's spending.

The people are with the House. They don't want the ceiling raised without real cuts, and they don't want taxes raised on anyone.

The American people just ain't buying Obama's shoe shine anymore.

Hi

Since you seem to know a lot, tell me, how much will the Treasury be refunding and how much interest will be due in the first two weeks of August? Also, how much tax revenues will be coming in?

Thanks.

 

[LordBrownTrout]

They're gonna raise the limit again..and again.....and again......and again..............and again. We're broke anyway. We'll raise it another 700B or so, kick it down the road a few months and then raise it again. A house built on sand doesn't last.

 

[Rozman]

I am begining to believe the republicans want us to go into a depression.

The only Depression I'm concerned with is mine....Every time I come here and see such support for a President who has done absolutely nothing to improve the economy....
I totally sink into depression.To totally support someone blindly and not to question any decision is maddening to me....

Then I see some of the posts from people who live in a reality that this administration has totally failed up to this point and I feel like this country just might have a chance...

2012 can't come fast enough.

 

[Anachronism]

I was with the link the OP posted on everything except the limitations on DEA and BATFE.

I am begining to believe the republicans want us to go into a depression.

If it would remove the scourge of the Democrats/Republicans/Libs/Socialists from this country permanently, I'd be all for a depression that made the 1930's look like DisneyLand.

 

[skookerasbil]

If the economy implodes, make no mistake. Obama wins big.......and he knows it. The public will look to government to restore order, and who's the only one to be able to ride in to the rescue on his white horse ( or maybe black horse, IDK?)?

 

[Zoom-boing]

That is, the real danger is not in the debt ceiling itself, but in giving Obama the power to cut $1.1 trillion however he pleases.

Blah blah blah. This "fear the black man" crap is getting really old.

There is real danger in us not raising the ceiling. But danger for regular people not the wealthy. Why? Well, when we hit the ceiling and stop making payments (whatever payments those may be) our credit rating will be cut. When its cut, our interest rate will go up. This means it will now be way more costly for us to borrow. We will eventually have to borrow, and whoever lends us the money will get a nice fat interest payment.

Who has lots of money to lend the government? The rich.

If anyone thinks this is not a golden opportunity to milk the taxpayer, then they're kidding themselves.

It is. So why did you bring it up? I didn't see M.D. say anything about Obama's skin color. You did though. Why do you hate black people?

 

[Toro]

They're gonna raise the limit again..and again.....and again......and again..............and again. We're broke anyway. We'll raise it another 700B or so, kick it down the road a few months and then raise it again. A house built on sand doesn't last.

We're not broke. Far from it. We are choosing not to pay. Big difference.

 

[Charles_Main]

July 12, 2011
By Randall Hoven
American Thinker


Excerpt:

Personally, I think a lot of areas could use some cutting. Maybe we fiscal conservatives should not let this crisis go to waste. Now could be a great time to get rid of the Departments of Education and Energy and virtually eliminate their budgets. Now could be a great time to throttle back on the intrusive police powers of the DEA and BATF. Now could be a great time to get the federal government out of market manipulation in housing and other "commerce", and end a lot of crony capitalism and corruption by taking some piggy banks away from bureaucrats.

The trouble is that the decisions on where to cut would come from the Treasury Secretary and ultimately President Obama. At least that is how I understand the process, which is fraught with legal and constitutional uncertainties.

That is, the real danger is not in the debt ceiling itself, but in giving Obama the power to cut $1.1 trillion however he pleases. Obama could very well decide to not make interest payments, thus defaulting. He could decide to not pay our military men and women. He could decide to short-change seniors dependent on government pensions. In short, he probably could bring about financial Armageddon with a few strokes of his autopen.

LINK

So many Lies, and Fear monger Statements are being made. Obama is Shameless. Now he is scaring Seniors and Vets telling them they might not get paid.

The Problem is the Government takes in enough money to Service the Debt and Pay SS, and Veteran Benefits, with out Borrowing MORE MONEY.

In Effect what Obama is saying is if he is not allowed to borrow more money. He will choose the most important programs, that will hurt people the most, to not fund.

There are hundreds of Government agencies that could be shut down, that would not mean people not getting SS checks, but That would not scare people as much as saying people will not be getting their SS checks.

 

[DontBeStupid]

It is. So why did you bring it up?

If you honestly think that all "conservatives" oppose Obama solely because he is a "socialist", then I have a bridge to sell you.

 

[Mustang]

It is. So why did you bring it up?

If you honestly think that all "conservatives" oppose Obama solely because he is a "socialist", then I have a bridge to sell you.

Are you suggesting that conservative Republicans do not hold egalitarian views?

 

[LordBrownTrout]

They're gonna raise the limit again..and again.....and again......and again..............and again. We're broke anyway. We'll raise it another 700B or so, kick it down the road a few months and then raise it again. A house built on sand doesn't last.

We're not broke. Far from it. We are choosing not to pay. Big difference.

How much more are we to give? I'm pretty sure that we don't have 15 plus trillion laying around to dig ourselves out of the hole. Plus, that latest housing debacle/bubble wiped out another 7 trillion. We just can't keep spending ourselves into this great prosperity.