Skip to comments.Boehner: The U.S. May Default On Its Debt If Obama Continues His Refusal To Negotiate
Posted on 10/06/2013 11:33:27 AM PDT by Cincinatus' Wife
...........During an appearance on ABCs Sunday program This Week, Boehner was asked what will happen if Obama maintains his position not to negotiate over raising the debt limit.
If he [Obama] continues to refuse to negotiate, the country is going to default? a stunned George Stephanopoulos asked Boehner.
Thats the path we are on, he replied.
Im willing to sit down with the president, but his refusal to negotiate is putting our country at risk, he added, reiterating it multiple times throughout the interview.......
(Excerpt) Read more at theblaze.com ...
Boehner rented a spine?
Those promoting this theory have gotten very specific about how the president will pull this off. (Epps has even taken the time to prewrite the speech Obama could give.) The president would just direct the Treasury Department to keep selling bonds. Obama would explain that the Republicans have left him no choice. The Constitution requires him to see that the laws are faithfully executed, but if he executes the debt ceiling law, he will be failing to execute the scores of laws that Congress has passed and that create the need for new borrowing. Put in this position, Henry Aaron argued this week, the president should follow the least bad option and break the ceiling.
One possible impediment to this plan would be that the White House legal counsel has said the president doesn't have this authority under the Constitution. Sure, but the president can just get another opinion or claim the situation demanded it. He's done that kind of back bend on matters of national security. He granted a waiver to businesses for the Affordable Care Act. A president can always find a workaround.
But the White House says finding a narrow legal rationale for this break-glass emergency measure would do no good because it would offer no certainty to financial marketsand staving off global economic chaos is what this whole exercise is about. "We'd break the glass, but it would only keep the house on fire," says a senior White House aide. The gambit would be up for dispute in the courts and invite chaos in Congress. While the president may be willing to take a political hit for doing something edgy to save the economy, his treasury secretary and economic advisers worry most about the disruption the ensuing legal fights would cause. At the very least........."
I don’t care if he stole it, as long as he keeps using it.
Why does everybody keep using the word “default”?
The Dems use it to scare people and the GOP seems to believe the majority of Americans are too stupid to understand basic math.
Rand Paul explained it perfectly last week:
The US takes in approximately $270B per month in various types of revenue. The interest on bonds and to creditors which MUST be paid first per the Consitution before any other debts, totals about $30B. That leaves $240B left to fund entitlements, enough to fund Social Security/Medicare in it’s entirety, Veteran’s benefits, and most, if not all, unemployment compensation. Then from there, it’s a priority game in determining how to spend the remaining few billion.
But the bottom line is that if the debt ceiling is not raised, the US can and will continue to pay it’s MANDATORY debts. Failing to pay an “entitlement” program is NOT a “default”.
Obama WANTS to threaten ‘default’ and would be willing to do so in order to raise the debt ceiling by himself and declare he is saving the nation by doing so.
He's doing what we've been griping about, time to THANK him.
I believe this will help him know the path he is taking is backed up by We The People.
I read a quote once, can't remember who to attribute it to:
” The smartest man I know is my Taylor, for he takes measure of me every time he sees me”
You don't hit a puppy with a newspaper when he Ain't peeing on the floor!
“Wouldn’t it be better to save the nation from default by invoking the Fourteenth Amendment, than to stand by and do nothing?”
Reid took the 14th off the table a long while ago....Pelosi said the other day she wants him to bring it back and it never should have been taken off...so they are already considering this.
Yes. We pay our creditors first. That is my understanding.
And money is flowing into D.C. from us.
But when was a “crisis” never not exploited by the Left?
They ought to deliver a throne to the White House with a note from Boehner to His Majesty. Start figuring out pr.
"If he [Obama] continues to refuse to negotiate, the country is going to default?" a stunned George Stephanopoulos asked Boehner. "Thats the path we are on," he replied. "I'm willing to sit down with the president, but his refusal to negotiate is putting our country at risk," he added, reiterating it multiple times throughout the interview.
Lets start that conversation by acknowledging we arent going to deport 12 million illegal immigrants... bringing these workers out of the shadows and into being taxpaying members of society. Imagine 12 million people who are already here coming out of the shadows to become new taxpayers.12 million more people assimilating into society. 12 million more people being productive contributors. [but hes not in favor of amnesty, snicker, definition of is is]
...by softening its edge on some volatile social issues and altering its image as the party always seemingly "eager to go to war... We do need to expand the party and grow the party and that does mean that we don't always all agree on every issue" ... the party needs to become more welcoming to individuals who disagree with basic Republican doctrine on emotional social issues such as gay marriage... "We're going to have to be a little hands off on some of these issues ... and get people into the party," Paul said.
Why was Georgey stunned? Does he think the Repubs will actually hold and not fold?
Another way of looking at what is going on here is that Obama and the Ruling Class in D.C. have maxed-out our credit card and Obama is threatening to not pay the bill unless his credit limit is raised.
So he will threaten that he will not pay the bill, and then he will announce that he will raise his own credit limit as he sees fit, so he can continue to charge on it.
Or he will threaten that we will not pay our bills if our credit limit is not raised and the country will suffer for lack of a limitless charge card and thus women, children and minorities will starve to death because of evil Conservatives who won’t let him raise our credit limit.
> Obama and the Ruling Class in D.C. have maxed-out our credit card and Obama is threatening to not pay the bill unless his credit limit is raised.
VERY well put.
I think the GOP is winning the shutdown battle, as each day this goes on and people realize the sky hasn’t falling, how stupid the liberals look. And now that bills have passed to allow furloughed workers to essentially get paid during the entire shutdown for doing nothing, that’s going to remove the biggest noticeable effect, and put more pressure on the libs to fund those “piecemail” bills the GOP has tried to passed in Congress. The cat is out of the bag that a shutdown is not the end of the world.
The same could be said about the debt ceiling. If we don’t raise it, but people realize the mandatory debt is being paid as well as the largest entitlement programs affecting the most Americans, there will be another realization that the “sky isn’t falling”, and the libs won’t be able to use this issue either for the forseeable future. This is why I think they trying to push Obama to commit an impeachable offense, because if Americans learn the debt ceiling doesn’t have to be raised to pay the debt, they won’t have this as an issue in the future to scare Americans.
I’m still not sure Boehner has the cajones to see this through the end. Sorry to say, the GOP has a history from snatching defeat from the jaws of victory.
Obama and his minions are bound and determine to ruin America. Period.
Fact is, if the speaker can hold this line(obamacare or debt limit increase -pick one), watch how fast the dems capitulate.
Boehner stands erect!
I’m glad Boehner is taking a stand, but he clearly cannot handle the press, Cruz has set the example on how to deal with the press, but no one will follow, Boehner looks and acts like an amateur, I couldn’t watch but about three minutes, he’s embarrassing.
Maybe I should have watched the whole thing, but I just could not!
<....” Obam... granted a waiver to businesses for the Affordable Care Act”....>
That is against the law, he legally could ‘not change’ the AHCA law once it had past...so he’s been breaking the law for some time now.
The same could be said about the debt ceiling. If we dont raise it, but people realize the mandatory debt is being paid as well as the largest entitlement programs affecting the most Americans, there will be another realization that the sky isnt falling, and the libs wont be able to use this issue either for the forseeable future. This is why I think they trying to push Obama to commit an impeachable offense, because if Americans learn the debt ceiling doesnt have to be raised to pay the debt, they wont have this as an issue in the future to scare Americans....
And while all that is happening, this (reality) is too: Miami Herald
"......... Prices and availability varied significantly, according to an analysis of the 1,923 plans being sold in the 34 states where the Department of Health and Human Services is running the marketplaces or working in partnership with states.
Under the health law, insurers can only set prices for policies that begin in 2014 according to age, household makeup, geographic location and smoking status (insurers are allowed to charge smokers 50 percent higher premiums than nonsmokers).....
.........monthly premiums are only part of the equation that consumers should consider when comparing plans. Ray Smithberger, general manager of individual and family plans for Cigna, urged consumers to consider the total value of their coverage, including provider networks, when shopping for plans that can cost a family as much as in one year as a mid-size sedan, or $20,000, when accounting for monthly premiums and out-of-pocket costs, such as co-pays and deductibles.
Smithberger said consumers should study their options. He cautioned consumers motivated by low monthly payments to consider the potential risks of higher out-of-pocket expenses for medical care when a plan with a higher monthly premium might offer greater coverage of costs.
If theyre thinking, Im getting my insurance and Im only spending, with my subsidy, $25 a month, he said, they need to understand that if they have a broken leg or need to go to the ER, thats going to cost them out of pocket.
Insurers also offer plans with lower monthly payments but with narrow provider networks that restrict consumers choices of doctors and hospitals......
I forgot to add that one...you are right...the law is already broken...impeach for that too!
Hold the line Boehner...
Call the man! Let him know he is doing the right thing.
He’s been weak, if we can stand by him now it will give him strength.
I’ve been calling for this, but it seems snark is the current craze.
Do we have any responsibility at all in seeing him through this?
I say yes. He’s a weeper, but this time it looks like he may hold out. Can we quit the snark and let him know?
Ted Cruz opened the door, and boehner walked in. Give the man some support.
I think this is just for show.
Yesterday it was reported that Boehner said he would bypass the Hastert Rule and let a vote come for raising the debt ceiling. That means Obamacare gets funded and the republicans lose.
There is no out for Obama except to look weak. Same with Boehner except for ignoring the Hastert Rule and saying the House voted to end the shutdown.
I have a thought on something I think has never been done before.
I am wondering if it would be constitutional for the House to sell US congressional bonds for federal reserve notes (created money or created digits). Then I am wondering if they can place the cash proceeds into trust accounts that can be used for specified purposes.
Such an idea would negate the idiotic trial flag idea of Obama using the 14th Amendment to bypass Congress and raise the debt ceiling by EO.
“Default” is a bunch of hooey.
It’s impossible to default on the debt——years down the road, maybe
Average monthly interest costs are $18 billion .. we take in on average $225 billion. By law, the president must pay interest first before anything else.
In addition to interest we must roll over the $550 billion of maturing debt each month. Newly issued bonds replace maturing bonds with no net change in total debt outstanding. If the Chinese and other investors won’t purchase them, Federal Reserve Chairman Bernanke will just buy them for the Fed’s account.
When confronted with money problems, adults make decisions and set priorities. We pay the mortgage before we pay the cable bill. But the Obama administration chooses tointentionally inflict pain on the American people by making the most headline-grabbing cuts possible.
What better example of this disgusting antic than erecting physical barriers on Tuesday, blocking access to the open air World War II Memorial to a group of Mississippi visiting vets. Erecting the barriers actually cost money to do so!
They recently shut down White House tours and National Parks but still managed to find the money for bonuses to IRS staffers and a multi-million dollar weekend of golf for the president and Tiger Woods.
The Social Security folks send out $68 billion a month. Active-duty military members get about $12.5 billion. From there, we work through the budget in order of priority, air traffic controllers, meat inspectors, etc. Unfortunately, the $225 billion a month falls short of the federal governments important obligations.
But why not be honest and say the government wouldn’t be able to pay all of itsbills” rather than the over-dramatic nonsense that “we will default on our debt”?
Did we need to lay out the $13 billion in crony loans to the solar energy investors that also happen to be major Democratic donors? Or, most especially, the billions that the “Affordable” Care Act is going to cost?
What if we asked employees of departments of agriculture, education, and energy if they would enjoy a voluntary unpaid sabbatical for the number of months they would choose? Would that provide enough cash flow to keep the White House tours going and the parks open for the American people?
The doomsayers have it exactly backwards. Say your personal finances were a mess, so you quit adding debt and cut spending. Your credit score would improve. If you dont believe me, ask any banker. Why would raising our national debt limit help our credit rating?
Some in the media posit that Standard & Poor’s reduced our credit rating due to “political gridlock.” Do you think it just might be because we are like a household earning $26,000 a year, spending $38,000 and increasing daily, our $169,000 credit card debt? How significant is the comparable $865 sequester reduction in relation to a $38,000 expense level?
Why do we tolerate such nonsense and demagoguery from our politicians and media?
Employees in small towns all across America suffer lower incomes when their employer struggles or goes out of business. In Washington, D.C, forget it! Our Ruling Political Elite believe we out here in the hinterlands (colonies?!) just fell off the pumpkin truck.
If you read or hear of “journalists” talking about default, forward them this...
I think boehner et all know this.
They continue the charade b/c if time does indeed come where the prioritization occurs, it’ll be like sequestration and like the gov’t shutdown ie no big deal.
What will be the big deal will be negotiating on those last few billion :)
call boehner with some support!
Ted Cruz gave us strength, can we not offer some to Boehner?
If a man ever needed a shot in the arm, it is Boehner. And remember we NEED him. If we can't help him stand firm, then WE must bear some of the responsibility.
What will it take to get through to you people?
Give him a "thumbs up!"
After that next up was Upchuck Schumer, I couldn't watch it.
Just for the record Boehner NEVER shut the govt down Neither did Reid.
The White House and OMB are the ones with the power to shut it down. They did it because (choose who is to blame). People don't seem to understand that (not here).
Impeachment will only affect Obama once he’s out of the Presidency and not much more than it hurt Clinton..which as we see didn’t.
I say the US People should do like Egypt ...lets go to Washington and demand he resign. Impeachment will take so long their will not be a country left by the time he’s brought everything through he’s marching on.
Amnesty will be the last nail in the coffin and that’s right around the corner...actually it’s being tabled as we speak...and they are already in the streets making their demands. (Under the tutor of the Democrats of course)
And of course there is always this to fall back on... ;-)
I am saving this and will do just that...thanks so much!
Thank you, John.
Perhaps bonehead has finally realized he will be in one of the first Obama Boxcars.
Paul: Theres No Reason for Us to Default
“President Obama and his Democratic allies are needlessly spooking financial markets about the prospect of a default on the national debt, Senator Rand Paul said Sunday on Meet the Press.
Even if the debt ceiling is not raised before the predicted deadline of October 17, Paul said there is no reason for the country to default. Congress could pass a GOP-backed proposal the Full Faith and Credit Act to take the prospect of default off the table..........”
Boehner is not a great public speaker, but he’s hanging in there against z lot of pressure, and this needs to be encouraged. Many of the hate-Boehner crowd here don’t realize that this has gone way beyond just a dispute over the CRs or even over Obamacare.
Barry is threatening to simply preempt the legislature by invoking the 14th Amendment. This is a constitutional crisis, and while Boehner’s weakness may have enabled it, he’s doing the right thing now.
The amount taken in includes Social Security tax revenue which is added to the general fund and which is redeemable by trust bonds which are effectively nothing more than IOUs.
There is not enough money for Social Security, the military and interest on national debt along with all other obligations. There’s just not enough and this is the reason the federal government is running a massive deficit and has been for many many years. But this is another story.
In 1913 the Income Tax and the Federal Reserve Act were enacted for reciprocal purposes. The US Income Tax has always been a domain of the Federal Reserve with Treasury acting as facilitator and enforcer. And indeed the long term agreement has always been that tax revenues will first be allocated to interest payments.
But that’s not possible without raising the debt ceiling in light of Social Security payments.
If you are a politician and you have the option of paying the interest and avoiding default AND letting Social Security recipients go hungry and cold with winter coming,
paying Social Security to avoid starvation and freezing AND defaulting on debt which will throw international finance, banking and bond markets into a death spiral, the choice is for today to raise the debt ceiling meaning go into more debt.
Tomorrow is a different story. Americans face a day of reckoning. But it will always devolve into a class warfare battle because the only way to dig out of this morass besides massively cutting government is to reform entitlements, meaning austerity.
But austerity measures translate to continue letting criminal bankers and financial con artists go scot free and letting develop a hostile response to the “Let them eat cake” wealthy class. Class warfare is a given.
One credible way out is to buy enough time to let FairTax enactment boost GDP in its first year by 10% and continue growing year over year until the deficit is eliminated, combined with entitlement reform.
Another way out that is complementary to the above is to pass Mark Levin’s Liberty Amendments.
Or, better yet, simply start supporting and defending the Constitution we’ve already got, staying well within the Enumerated Powers. Problem solved.
This is why the Dems are going nuts over the debt limit. After the bills are paid it is their pet projects that will not get funded.
Gosh yes, last time I looked Uncle Sugar was still sucking income and payroll taxes out of my paycheck.
“What would Jack Slater do?” is the better question.
I think Boehner knows raising the limit is much more dangerous that not raising it. And you’re right. obama wants to destroy this nation. That’s been his plan all along. And all the dems are going along with him. So I’m not sure he wants the limit raised. He’ll be just as happy to see our credit rating downgraded again. That will hurt.
Whenever a democrat shouts “It’s the law passed by congress, signed by the president and confirmed by the supreme court”, the response should be “If it’s the law. Why do you say obama can change it but congress can’t?”