If debt limit not raised,why would Natl Debt default instead of Socl Sec, govt salari

[Little-Acorn]

I keep hearing that if we don't raise the Debt Ceiling by Aug. 2 or whatever the date will be, that we will default on payments on the country's National Debt.

Why will the National Debt be the one that is hit, instead of any of the other things the Fed govt pays money on? Like Social Security, or legislators' salaries, or any of the other usual expenses?

Is it because the National Debt is the only one that doesn't vote?

If we have to chop something, however temporarily, why not chop legislators' salaries, or funding for OSHA or ATF etc., instead of defaulting on the National Debt?

[CSM]

Bread and circus. No bread, no circus = peasants in revolt.

Pretty soon the Visigoths will be sacking the place.

[KarlMarx]

I keep hearing that if we don't raise the Debt Ceiling by Aug. 2 or whatever the date will be, that we will default on payments on the country's National Debt.

If they don't raise the debt ceiling, it means that, for once, the federal government will have to live within its means. Revenues to the Treasury are estimated to be 2.17 TRILLION dollars (I wish someone would give me that much and tell me to not to spend all of it in a year... ).

The interest on the federal debt is approximately 185 billion dollars... well within the 2.17 Trillion dollar figure.

So why does Barak Obama say that we'll default on the debt? The answer is simple... because Barak Obama and the Democrats are lying... they know full well that raising the debt ceiling would not mean a default on the federal debt.

Of course, something would have to give... so let's start with Obama Care, the biggest waste of money in human history. If you were to repeal that, the whole problem either disappears or disappears altogether.

[Kathianne]

A good article, related to discussion:

http://www.americanthinker.com/2011/07/debt_ceiling_worst_case_scenario.html

...In round numbers, the federal government would have to live on what it did in 2005. It would not have to be the end of the world. It certainly would not have to mean default. In fact, it is disingenuous to conflate not raising the debt ceiling with defaulting on sovereign debt.

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.

And, of course, he will blame it on those evil Republicans who voted No on raising the debt ceiling.

And there's the rub. Bad things are going to happen in any case. The choice is among bad, worse and Greece. But thanks to the 2010 elections, Obama, the Democrats and the mainstream media (but I repeat myself) have someone to blame it all on: the House Republicans (and the crazy Tea Party nuts who control them).

This is no longer a budgetary or actuarial exercise. It is a PR exercise and a Blame Game. Then again, what's new?

[KarlMarx]

Somehow.. this whole situation with Barak Obama lying to the American people... it reminds me of the final scene from the movie "And Justice For All"....


http://www.youtube.com/watch?v=oTgss4buMos&feature=related

[Gunny]

Somehow.. this whole situation with Barak Obama lying to the American people... it reminds me of the final scene from the movie "And Justice For All"....


http://www.youtube.com/watch?v=oTgss4buMos&feature=related

As has been the case since the Dem primary, the silence from the left is deafening. Unless you include their usual "Chicken Little" act about SS as an excuse to raise taxes.

They've already raised them once this year to begin with and again, not a peep from the left. They just pretended it never happened.

[J.T]

Here's an idea for the budget







STOP INVADING EVERYONE


just a thought...

[Missileman]

Here's an idea for the budget







STOP INVADING EVERYONE


just a thought...



Holy crap! One in a row! Congrats!

[logroller]

Holy crap! One in a row! Congrats!

And so begins a 14.348 trillion dollar journey. We'd better get moving, since 2007 the nat debt has increased $3.86B/day!