The words of Barack Hussein Obama, our fearmonger-in-chief:
Obama in an interview with CBS said he couldn’t guarantee Social Security checks would be sent out on Aug. 3 if Congress did not raise the debt ceiling by Aug. 2, when the Treasury Department has said it will no longer have the money to pay all of the U.S. bills
Republican Allan West is entirely right in saying, “That’s fear mongering that’s not leadership, that’s sad and pathetic.”
Allow me to point out first of all that this fearmongering from Obama is nothing new. Allow me to quote a Wall Street Journal article from almost immediately after Obama was sworn in as president:
“President Barack Obama has turned fearmongering into an art form. He has repeatedly raised the specter of another Great Depression. First, he did so to win votes in the November election. He has done so again recently to sway congressional votes for his stimulus package.”
Obama’s fearmongering then resulted in our undertaking a suicidal $3.27 TRILLION pork-laden “stimulus” that has massively failed to do what Obama promised it would do at a giantic cost to our children. But he is an evil, cynical loathsome man who has experience in the fact that the lowest common denominator often wins.
Let’s move on to a demonstration of a man who is A) a liar; B) a fearmonger; and C) the worst kind of demagogue. Let me begin by citing the Bipartisan Policy Center:
Bipartisan Policy Center: U.S. Won’t Default on Debt If Congress Fails to Raise Debt Ceiling
Posted in Weekly Standard – 8 July 2011 – No comments
With under a month left until the U.S. hits its statutory limit to borrow more money, Republicans and Democrats continue to disagree about what exactly would happen if Congress and the president fail to reach an agreement that raises the debt ceiling.
“Failure to raise the limit would precipitate a default by the United States,” wrote Treasury Secretary Timothy Geithner earlier this year. No, that’s not true, say Republicans. There’s enough federal revenue to pay the interest on the debt as well as fund the troops and entitlement programs.
According to a study by the Bipartisan Policy Center (BPC), Treasury could indeed avoid a debt default by prioritizing payments, but failure to raise the debt ceiling would mean deep and immediate cuts.
Which is to say that Democrats are lying and fearmongering, and Republicans are telling the truth. But seriously what else is new???
And, with that, a piece of an article from Market Watch that provides the numbers to support what the Republicans are saying and to factually disprove what lying Obama is saying:
Q: What is a default?
A: In this case, a default would be the failure by the U.S. Treasury to make payments of principal or interest on its debt in a timely manner.
Q: In a given month how much does the Treasury owe as interest on its debt?
A: Roughly about $15–20 billion (more on this in a moment).
Q: How much revenue does the Treasury take in on average in a month?
A: Roughly about $200 billion.
Q: Are you saying the Treasury could pay interest on its debt 10 times over (or more) from monthly income?
A: Yes. Therefore the likelihood of not paying interest on its debt is zero.
Q: But, what about redeeming bonds that come due?
A: As bonds come due, the Treasury would again use monthly income to pay them off. This would lower the debt owed beneath the so-called debt ceiling. Then, the Treasury could turn around and issue debt in that amount up to the debt ceiling.
Q: Why then do Treasury Secretary Geithner and others in government make such apocalyptic statement about the horrors of default.
A: I’m afraid Secretary Geithner and others in government are doing the moral equivalent of yelling “Fire!” in a crowded theater and they are doing so for political reasons rather than financial reasons. They simply do not want any interruptions in the bloated spending underway in Washington and they want to scare Americans into thinking the end of the world is nigh unless the gravy train keeps chugging along.
Math is hard for politicians
Now, let’s do the math to flesh out some of these points. I know that for many politicians and pundits math is hard, but I’ll try to make it as simple as possible. If we do not raise the debt ceiling by August 2nd, we will not default on Treasury obligations. Nor, will we have trouble making Social Security payments. However, there would be a big drop — roughly 44% — in government spending because that percentage represents the difference between government revenues which would be about $200 billion for the full month of August and $172 billion for August if we start counting after the first week when the deadline hits. Spending is slated to be over $300 billion that month.
…The BPC study found that the United States is likely to hit the debt limit sometime between August 2 and August 9. “It’s a 44 percent overnight cut in federal spending” if Congress hits the debt limit, [BPC's Jay] Powell said. The BPC study projects there will be $172 billion in federal revenues in August and $307 billion in authorized expenditures. That means there’s enough money to pay for, say, interest on the debt ($29 billion), Social Security ($49.2 billion), Medicare and Medicaid ($50 billion), active duty troop pay ($2.9 billion), veterans affairs programs ($2.9 billion).
That leaves you with about $39 billion to fund (or not fund) the following:
Defense vendors ($31.7 billion)
IRS refunds ($3.9 billion)
Food stamps and welfare ($9.3 billion)
Unemployment insurance benefits ($12.8 billion)
Department of Education ($20.2 billion)
Housing and Urban Development ($6.7 billion)
Other spending, such as Departments of Justice, Labor, Commerce, EPA, HHS ($73.6 billion)
The decision to prioritize payments would fall on the Treasury department, and Powell points out it would be chaotic picking and choosing who gets paid (in full or partially) and who doesn’t…
No doubt picking and choosing who gets paid and who doesn’t would be chaotic. And, lots of programs would not get their funding and that would lead to plenty of screaming. Nonetheless, it should be clear from this exactly how much we are spending in excess of government revenues. And, that could and should lead to a sober assessment of what government can and cannot do.
We can easily make all of our debt payments (both interest and principal), our Social Security payments, our contributions to Medicare and Medicaid, our payments to our active duty soldiers and provide funding to the VA system. With room to spare. Barack Obama and Timothy Geithner (a lying weasel who didn’t pay his own taxes) are lying weasels.
They are treacherous and un-American. They are the very worst kind of cockroaches. They represent everything that is wrong with this country’s political system. What Obama is doing is low and loathsome beneath contemptible. The only way that we wouldn’t send out Social Security checks is if Obama decides to fund demonic ACORN instead of sending out those checks (see here and then see here and here). And the scumbag might actually do that because he’s simply that wicked and depraved and uncaring about the American people or their suffering.
Obama – the liar, the demagogue, the fearmonger – falsely demonized Republicans by claiming that they were using the debt ceiling as a gun to the American people’s heads. HE’S THE ONE USING THIS ISSUE LIKE A GUN.