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The Myth of Government Default [If you think gun control is a problem, read this]
Wall Street Journal ^ | 1/11/13 | David Rivkin & Lee Casey

Posted on 01/11/2013 10:05:56 AM PST by IndePundit

Three false arguments, pushed hard by the Obama administration and accepted on faith by the media and much of the political establishment, must be laid to rest if the American people are to understand the issues at stake in the federal "debt ceiling" debate. The first is that Congress's failure to raise the debt ceiling—the amount of money the federal government is authorized to borrow at any given time—will cause a default on the national debt. The second is that federal entitlement programs are constitutionally protected from spending cuts. The third is that the president can raise the debt ceiling on his own authority.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Constitution/Conservatism; Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS: debtcrisis; fiscalcliff; guncontrol; nancypelosi; obama; secondamendment; uscrisis; usdebt; usdefault
How long are we going to stand for the proverbial wool being pulled over our eyes? There was no fiscal cliff, there is no crisis. There are other important issues at stake other than just gun control. Make sure to share with your friends. Let's stay focused people!
1 posted on 01/11/2013 10:06:10 AM PST by IndePundit
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To: IndePundit
The second is that federal entitlement programs are constitutionally protected from spending cuts.

Must be in the same section of the Constitution that bestows a right to Abortion and Sodomy...

2 posted on 01/11/2013 10:10:29 AM PST by apillar
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To: IndePundit
Forgot to post the title: Rivkin and Casey: The Myth of Government Default
3 posted on 01/11/2013 10:10:46 AM PST by IndePundit (Bleeding Red)
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To: apillar

What planet are you from??


4 posted on 01/11/2013 10:13:24 AM PST by IndePundit (Bleeding Red)
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To: IndePundit
RE :”The first is that Congress's failure to raise the debt ceiling—the amount of money the federal government is authorized to borrow at any given time—will cause a default on the national debt. “

You have to listen to them carefully, they make it sound like that but the typically say “The House GOP is willing to let us default on or ‘obligations’”

But what are those ‘obligations’ ??

those are spending bills passed into law by congress and signed by POTUS, some by the current congress CR, others by past congresses.

But people hear ‘obligations’=’national debt interest payments’

That's how Dems fight and win,.

5 posted on 01/11/2013 10:14:31 AM PST by sickoflibs (Losing to O is NO principle!)
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To: IndePundit

One uniquely perturbing lie, and I’m not sure why, is that we’ve never defaulted on our debt before. I should ignore it altogether, for as the debt ceiling offers no particular danger of default it is irrelevant. However it is so damned obvious and well known that we have defaulted, and spectacularly, that it gets my goat when it isn’t acknowledged.

If at no other time the federal government on a massive scale welched on conntractual obligations when they deliberately took us off the gold standard. I don’t care if SCOTUS in the Gold Clause Cases said it was okay. Nevertheless we defaulted.


6 posted on 01/11/2013 10:19:42 AM PST by Tublecane
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To: IndePundit

The GOP should raise the debt ceiling when the Dems get a budget passed.


7 posted on 01/11/2013 10:20:27 AM PST by csmusaret (I will give Obama credit for one thing- he is living proof that familiarity breeds contempt.)
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To: sickoflibs

sickoflibs “..those are spending bills passed into law by congress and signed by POTUS, some by the current congress CR, others by past congresses.
But people hear ‘obligations’=’national debt interest payments’ “

The POTUS controls the language through the TV media ( official white hut spokespersons).
Change the language and control the issue !


8 posted on 01/11/2013 10:20:35 AM PST by Tilted Irish Kilt (Disclaimer - the opinions above merely reflect the writers restricted ability to observe reality)
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To: Tilted Irish Kilt
RE :”The POTUS controls the language through the TV media ( official white hut spokespersons).
Change the language and control the issue !”

Yep, on another thread I posted :

He’s (Os) not a dumb Republican silly. He doesnt broadcast his real plans so boldly unless public approval is with those plans, unlike many Republicans who go to kick Lucy's football over and over.
In those cases he says one thing and does another. He lies and says he is the only honest one at the table,.
(clip)
By the time other states realized what happened it will be over, much like Republicans ‘after the fact’ reactions to O.

9 posted on 01/11/2013 10:25:07 AM PST by sickoflibs (Losing to O is NO principle!)
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To: IndePundit

Subscription? What did it say?


10 posted on 01/11/2013 10:25:07 AM PST by RitaOK ( VIVA CHRISTO REY / Public education is the farm team for more Marxists coming.)
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To: Tilted Irish Kilt

Another way we need to control the issue is everyone thinking Obama is in charge of the debt ceiling. Congress has the power of the purse people!


11 posted on 01/11/2013 10:27:32 AM PST by Martin_Schmidt (Nothing but debt)
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To: RitaOK
A couple of the most interesting points were that an earlier draft of the 14th amendment did use the word "obligations" which was changed to "debts" before it was voted on. That implies that only the debts are covered by it and not promises of future payments.

Also pointed out that Article I, Section 8 (miscited in the article as section 2) that only Congress has the power "To borrow Money on the credit of the United States;". The president cannot do it on his own without Congressional authorization.

12 posted on 01/11/2013 10:44:04 AM PST by KarlInOhio (Choose one: the yellow and black flag of the Tea Party or the white flag of the Republican Party.)
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To: Martin_Schmidt

Mitch McConnell should know all of this very well. He is the R’s old lion on rules, procedures and the tricky use of both to stop tyranny. Being RINO, he is stuck in the past, politics as usual, staying silent on the obvious.

The R’s are simply apathetic, but they know the law and its intent, but the establishment is playing the game of the Left, bringing a spoon to a gunfight.


13 posted on 01/11/2013 10:47:02 AM PST by RitaOK ( VIVA CHRISTO REY / Public education is the farm team for more Marxists coming.)
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To: Tublecane

Inflation at any level is partial default.


14 posted on 01/11/2013 11:03:26 AM PST by arthurus (Read Hazlitt's Economics In One Lesson ONLINE www.fee.org/library/books/economics-in-one-lesson)
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To: IndePundit

btt


15 posted on 01/11/2013 11:04:26 AM PST by rightwingextremist1776
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To: Martin_Schmidt

Martin_Schmidt~:” Another way we need to control the issue is everyone thinking Obama is in charge of the debt ceiling. Congress has the power of the purse people! “

That’s true that Congress controls the purse strings, not the President
How long have we heard that Obama inherited a Bush Debt at 5 trillion ; but Obama’s debt is now climbing to 16 trillion
But Zero OWNS RESPONSIBILITY for the debt that he has publicly cajoled / coerced Congress into approveing .
The man consistantly refuses responsibility for his own spending actions, and the press allows it
We need to call it what it is: “ Obama’s Debt Crisis “

The myth of the ‘financial crisis’ began under Clinton when the Federal “Just-Us” Dept. pushed GinnyMae & Feddie Mac and banks to loan to individuals who they knew couldn’t repay the loans.
It only took 14 years for Federal regulators to admit it.
Did that fact appear anywhere in the media or newspapers other than on page #8 ?
The originator of todays national financial issue was totally ignored ; and Clinton is now seen as a political saint by the media and press .
Clinton and Obama are both narcisists; neither is held accountable for thier actions !


16 posted on 01/11/2013 11:06:05 AM PST by Tilted Irish Kilt (Disclaimer - the opinions above merely reflect the writers restricted ability to observe reality)
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To: IndePundit

Rivkin and Casey: The Myth of Government Default - WSJ.com

http://rightcoast.typepad.com/rightcoast/2013/01/rivkin-and-casey-the-myth-of-government-default-wsjcom.html

Once these false arguments are cleared away, the real issue in the debt-ceiling debate becomes clear: the proper level of federal spending. Should Congress fail to increase the debt ceiling as much as the president wants, the effective result would be major government spending cuts, with payments on public debt excluded.

This is tough medicine and not to be administered lightly. If Republicans are serious about winning this debate, they must strive to convince the American people that such spending cuts are necessary, given President Obama’s openly articulated unwillingness to implement any meaningful spending cuts other than defense and his clear preference for limitless borrowing.

Whether they can succeed in this task is unclear. But the public must at least be allowed to ponder these vital issues without being misled by false claims involving debt default, the nature of federal obligations, and which branch of government is in charge of the public fisc.


17 posted on 01/11/2013 11:26:04 AM PST by Excellence (9/11 was an act of faith.)
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To: Tilted Irish Kilt

FREEP THIS POLL On Gun Control - (I realize we’re talking about the debt ceiling here, but I found this WSJ poll after I went to the article associated with this thread.)

http://online.wsj.com/community/groups/question-day-229/topics/should-background-required-every-gun?dj_vote=40056


18 posted on 01/11/2013 12:00:34 PM PST by The Doctor ("They work for us. Take back government from those we can't trust.")
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To: Martin_Schmidt

“Congress has the power of the purse people!”

Well, any law has to be signed into existence by the president. Unless Congress overcomes the veto, which requires extraordinary agreement. But, yes, it is more Comgress’ power than the president’s, and more the house’s than the senate’s. Not that you’d know it from the illegal Obamacare and “fiscal cliff” bills.


19 posted on 01/11/2013 12:30:13 PM PST by Tublecane
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To: arthurus

I don’t agree with that. Inflation is a tax, and should our lendors be so foolish as to enter an agreement to be remitted by cash and hold on to it for more than a nanosecond they are taxed, too.


20 posted on 01/11/2013 12:33:13 PM PST by Tublecane
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To: IndePundit

Gee, I’d luv to read that but, they want me to subscribe....


21 posted on 01/11/2013 1:25:25 PM PST by Vendome (Don't take life so seriously, you won't live through it anyway)
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