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To: St_Thomas_Aquinas

Politico has an article explaining why it is unconstitutional to default. The Constitution is one of enumerated powers and supposedly the government only has the powers granted to it. Default can be avoided but our government only has the power to tax, spend, and borrow. The constitution does not compel the repayment of debt. How could it? To do so would mean unlimited power to tax or even taxation by fiat. Not that we are not almost there anyway.

Exactly what is the worry about? We default once then thereafter we must live within our means.

Its a great gig. Spend or promise to spend despite an electorate that wont agree to be taxed enough to cover it. Then cover the shortfall by borrowing. Then claim the borrowing is sacred debt and must be honored by raising the aforementioned taxes.

The government can spend and make all the promises it cares to make but We The People must consent to taxation. If we don’t consent enough then default is the logical outcome.

It is no different then when a company promises a pension but doesn’t put aside the money to pay for it. Unless the money is there years later there will be no pension. The only prudent course is to insistent on upfront funding (unless of course you are the UAW in which case you can force someone else to pay).


24 posted on 02/20/2012 11:09:14 AM PST by FreedomNotSafety
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To: FreedomNotSafety

-—The government can spend and make all the promises it cares to make but We The People must consent to taxation. If we don’t consent enough then default is the logical outcome.-—

I’m guessing that this is the trade secret, or inside joke, among our legislators. All of this sturm and drang could be theatrics, AFAWK.

At bottom, we reboot, and start again.

The Alinskyites would like to use the default boogeyman to stampede us into collectivism. That’s a legitimate concern.


25 posted on 02/20/2012 11:34:34 AM PST by St_Thomas_Aquinas (Viva Christo Rey!)
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