Flee to Mars if America commits worst error since 1931

The Telegraph ^ | 7/27/2011 | Ambrose Evans-Pritchard

[bruinbirdman]

President Obama has categorically ruled out a constitutional challenge to the US debt ceiling since I wrote yesterday’s blog.

Spokesman Jay Carney said the White House cannot invoke the 14th Amendment, which stipulates that US federal debt “shall not be questioned”.

“It’s not available. The Constitution makes clear that Congress has the authority, not the president, to borrow money and only Congress can increase the statutory debt ceiling. That is just a reality,” he said.

That is questionable, but let us move on.

Obama had previously been vague about this, saying White House lawyers were “not persuaded that is a winning argument”. It is a revealing turn of phrase. This is indeed about winning arguments, not abiding by constitutional law.

It is understandable why he should wish to avoid to an end-run around Congress in this violently polarized atmosphere, though it would not have stopped have FDR. (He went much further by stacking the Supreme Court).

However, the 14th Amendment still binds the nation. The US cannot miss a coupon payment on past debt without breaching the nation’s highest law, and without defiling the honour of the United States.

So this shifts the balance of probabilities a little further towards a brutal fiscal shock as spending is cut to meet the debt ceiling, if Congressional leaders fail to marshal their troops in any semblance of order over coming days.

Since tax revenues cover just 60pc of the federal budget, the squeeze would have to be on a scale large enough within a few months to tip the US economy into a downward spiral and take the world with it.

As an historic policy error it would match the New York Fed’s decision to

[Vaquero]

America did commit the biggest error since 1931...it elected a Marxist _resident in 2008

and there is NO AIR on Mars...

....so send the Dhimmicrats the _resident and most of congress there....

[Colonel Kangaroo]

Credit where credit is due to President Obama for showing respect for our Constitution in this particular case.

[Nervous Tick]

>> Since tax revenues cover just 60pc of the federal budget, the squeeze would have to be on a scale large enough within a few months to tip the US economy into a downward spiral and take the world with it.

Arguably true, but that doesn’t change the fact that it’s the RIGHT thing to do.

Let’s take our lumps now. Start living within our means NOW, cold turkey. We’ll make it through and come out STRONGER if we have the guts to do it.

[BenKenobi]

“Since tax revenues cover just 60pc of the federal budget, the squeeze would have to be on a scale large enough within a few months to tip the US economy into a downward spiral and take the world with it.”

Spare me. Guess who has taken a 40 percent cut and survived just fine TYVM? Oh wait, that would be me.

[EagleUSA]

We warned them, we screamed, we got criticized, we got called racists, you name it — all BEFORE the election.

And we were right.

Just like Joseph McCarthy was right.

Fundamentally, people are idiots.

[Michael Barnes]

Fundamentally, people are idiots.

I think the individual is just fine; its large numbers of individuals that incite stupidity.

[Nateman]

the squeeze would have to be on a scale large enough within a few months to tip the US economy into a downward spiral and take the world with it.

I call BS! It means the feds FINALLY have to spend no more than they take in. Having a bunch of predators and parasites ripped away from Uncle Sams tits so that they can no longer harass us and eat out our substance would make the economy take off like a rocket!

I'm surprised Ambrose Evans-Pritchard wrote this, he did great coverage of the Clinton crimes years ago, I had hoped better from him.

[DannyTN]

Possibilities:

• Obama is not going to challenge the debt ceiling limit, he's just going to violate it, knowing that the house can impeach but the senate won't convict.
• Obama and the rats still expect the GOP to cave at the last moment.
• Obama is not going to compromise, let the limit kick in, and then cut discretionary spending to stay under the debt limit, and then punish the country by cutting the things that have the biggest impact.
• Obama is going to let the limit kick in and then cut discretionary spending, but we will be subjected to non-stop sobb stories of government employees being laid off, and the effects it has in their communities.
• Obama is going to let the limit kick in and then cut entitlements in hopes SSA recipients will blame the GOP.
• Rat's will cave at the last possible moment, but then Obama will blame GOP for anything and everything. (GOP is the new BUSH).

[DannyTN]

Possibilities:

• Obama is not going to challenge the debt ceiling limit, he's just going to violate it, knowing that the house can impeach but the senate won't convict. (Once he's proven that he is unimpeachable, expect power grabs of immense proportions)
• Obama and the rats still expect the GOP to cave at the last moment.
• Obama is not going to compromise, let the limit kick in, and then cut discretionary spending to stay under the debt limit, and then punish the country by cutting the things that have the biggest impact.
• Obama is going to let the limit kick in and then cut discretionary spending, but we will be subjected to non-stop sobb stories of government employees being laid off, and the effects it has in their communities.
• Obama is going to let the limit kick in and then cut entitlements in hopes SSA recipients will blame the GOP.
• Rat's will cave at the last possible moment, but then Obama will blame GOP for anything and everything. (GOP is the new BUSH).

[vbmoneyspender]

though it would not have stopped have FDR. (He went much further by stacking the Supreme Court).

Evans-Pritchard needs to quit writing columns and go back to school. He should also lose the hyphenated name. Pick one Ambrose, Evans or Pritchard.

[Hugin]

I say go ahead and default. It’s going to happen sooner or later, or the money will be so devalued that the bonds will be worthless anyway. Might as well get it over now. If we did, we wouldn’t be able to borrow more money, but without interest payments we wouldn’t need to. I don’t see any good reason my grandkids should be slaves to debt incurred by people who will no longer be acountable. If the Chinese, Saudis and Wall Street grifters don’t like it, too bad. Like I said, it will happen eventually anyway.

[Brilliant]

The Europeans were rooting for Obama. I’d say they committed the error as well as some here.

[combat_boots]

Shep Smith has just said 0bama ‘apparently could’ use the 14th Amendment to unilaterally raise the debt limit.

This. From FOX.

Frantzie was right.

[Talisker]

The part of the 14th that would be used to seize debt allocation authority is NOT the part of the 14th that addresses the debt.

It's this: "All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside."

THAT is the federalizing of the citizenry into corporate individuals, and the federalizing of the States into federal corporate States.

And the Federal Reserve is the source of the debt that those corporate entities exist to service.

And default by those corporate entities, as Obama has already declared, will not be allowed.

[Rebelbase]

"there is NO AIR on Mars"

[familyop]

"Spokesman Jay Carney said the White House cannot invoke the 14th Amendment, which stipulates that US federal debt “shall not be questioned”...The Constitution makes clear that Congress has the authority, not the president, to borrow money and only Congress can increase the statutory debt ceiling...That is questionable, but let us move on."

"Flee to Mars," then, Mr. Evans-Pritchard, because the default process will continue. We're already in the fix, and our government-business leaders' actions for the near future are obvious. We're not manufacturing enough useful products in our own country for sustainable revenues or real trade. Real trade is, in essence, the exchange of products for products instead of worthless bonds and other I-owe-yous for products.

I'm already on Mars, and it's not so bad. Thanks, bruinbirdman, for the post that brought a smile.

[bruinbirdman]

"Let’s take our lumps now. Start living within our means NOW, cold turkey"

"I'm already on Mars, and it's not so bad. "

I dare say a 40% cut in socialist handouts would be felt more by commie/lib slaggards than Conservatives.

It feels good being prepared.

yitbos

[bruinbirdman]

"I'm surprised Ambrose Evans-Pritchard wrote this"

This is AEP's blog. His second one, now, between Telegraph articles.

He does this to get feedback and ideas for his final draft that is published in the paper.

Check out some of the 500+ responses to this blog. Also his Kabuki blog here:

The Kabuki theatre of America's Debt Ceiling

yitbos

[familyop]

"I dare say a 40% cut in socialist handouts would be felt more by commie/lib slaggards than Conservatives.

It feels good being prepared."

Fully agreed, bruinbirdman, although I'll continue working toward getting prepared for some time. That cut in socialist handouts will happen, too, as bonds collapse and perpetuate the other events included in the vicious circles of the default process. It will all land, where it can be physically supported.

Big government needs big revenues of value and the kind of unfettered, productive business that would continue to generate revenues. The situation at hand is a checkmate against socialism. The leaders of tomorrow may trade more freedoms to us for having fewer regulatory burdens on them and us.