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The Debt Ceiling is the Law of the Land
redstate.com ^ | 10/6/13 | Daniel Horowitz

Posted on 10/07/2013 6:07:28 PM PDT by cotton1706

Over the past few weeks, Democrats have indicated that they have no intention of negotiating over Obamacare, opting instead to shut down the government. They are justifying their obstinacy by asserting that Obamacare is the law of the land. Well, if that is the game they want to play, we should return the favor with the debt ceiling. The debt ceiling, pursuant to the Second Liberty Bond Act of 1917, is the law of the land. And it has been so for far longer than Obamacare.

Throughout this debate over funding Obamacare in the budget bill, House GOP leaders have stressed how the debt ceiling was the more appropriate means of fighting Obamacare. After all, it was “the next fight.” But as if on cue, some Republicans are already using the same Democrat talking points about the risk of default.

We are going to hear this erroneous talking point propagated by both parties over the next few weeks, so let’s put the myth to rest. The only way we default on the debt is if we fail to pay the interest on the public debt. According to the updated budget projection from the CBO, interest on the debt will be roughly $237 billion for 2014. Thanks to the short-term revenue benefits of the fiscal cliff and Obamacare tax hikes, the federal government is expected to rake in a record $3.042 trillion from the private economy this year.

Let’s engage in a simple math exercise. $3.042 trillion – $237 billion = $2.805 trillion. As long as the Treasury pays the first $237 billion in revenue to the shareholders of our debt, there will be no default, and we will have $2.805 trillion left to spend. Again, default is taken off the table. Discussion over.

What do you do with the remaining funds? You start funding core functions of government and those programs that people are already dependent on.

Social Security (retirement and disability) – $848 billion

Medicare – $505 billion

Medicaid – $298 billion

Defense – $582 billion

Veterans – $83 billion

Those expenditures account for roughly $2.3 trillion. The remaining half trillion can be prioritized as needed for other functions related to homeland security, national parks, or any other limited function. Hence, the debt ceiling is a built-in balanced budget mechanism. If Democrats want to fund other functions of government, they need to commit to a balanced budget. If they want to fund the HHS and the IRS, they need to get rid of Obamacare. If they want to fund the EPA, they need to get rid of the war on coal.

The power of the purse manifest in the House of Representatives, in conjunction with the debt ceiling law, reflects democracy at work, especially with divided government. It’s time we stop peddling the myth of default, and start using our leverage to restore constitutional government and bring relief to those who are losing jobs and suffering from the high cost of living engendered by the harmful activities of the unconstitutional aspects of government.


TOPICS: Breaking News; Constitution/Conservatism; Politics/Elections
KEYWORDS: bloggers; braking; debt; debtceiling; diary; obamas100m4vacation

1 posted on 10/07/2013 6:07:28 PM PDT by cotton1706
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To: cotton1706

imho, article makes excellent points. May the gope read the article and learn.


2 posted on 10/07/2013 6:11:44 PM PDT by no-to-illegals (Scrutinize our government and Secure the Blessing of Freedom and Justice)
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To: cotton1706

They Democrats are purposely dragging this thing out so they can eventually tie it to the debt ceiling and force our hand.


3 posted on 10/07/2013 6:12:06 PM PDT by RC one
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To: cotton1706

>>The Debt Ceiling is the Law of the Land<<

I am going to use that one!


4 posted on 10/07/2013 6:12:30 PM PDT by freedumb2003 (Fight Tapinophobia in all its forms! Do not submit to arduus privilege.)
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To: cotton1706

But all legislated expenditures are equal.
This “some pigs are more equal than others” argument is not for me.

The debt payments are constitutionally given priority, but all other expenditures are equally valid and legally compelling.

Don’t merge the debt limit and spending battles. Win the spending battle and adjust the debt limit accordingly.


5 posted on 10/07/2013 6:15:21 PM PDT by mrsmith (Dumb sluts: Lifeblood of the Media, Backbone of the Democrat Party!)
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To: cotton1706

Great post.

The Dems will never allow a default to happen because it would be the end of the spending spree since it would mean the end to easy borrowing.

The Dems must have the next round of borrowing to continue to SPEND.

The only reason the Pubbies will not force the issue is that they intend to spend as well.

So I say take the debt limit to wall. Dems will have no choice to cave or start living without borrowed money.

It would be interesting to see how the debt repayment is structured. How much is coming due in principal that has to be retired?


6 posted on 10/07/2013 6:16:00 PM PDT by FreedomNotSafety
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To: cotton1706

John Boehner — HOLD THE LINE!!!!


7 posted on 10/07/2013 6:19:53 PM PDT by workerbee (The President of the United States is DOMESTIC ENEMY #1)
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To: FreedomNotSafety

If obama doesn’t make the payments there are going to be some pissed off Chinese. Think they will foreclose?


8 posted on 10/07/2013 6:20:07 PM PDT by VerySadAmerican (".....Barrack, and the horse Mohammed rode in on.")
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To: cotton1706

The Debt Ceiling is the Law of the Land

Great line

9 posted on 10/07/2013 6:21:36 PM PDT by RightGeek (FUBO and the donkey you rode in on)
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To: cotton1706

Excellent!


10 posted on 10/07/2013 6:23:21 PM PDT by Lancey Howard
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To: VerySadAmerican

I mentioned I believed the government should develop a balanced budget and was ridiculed by a Mormon who insisted that the US had only had a balanced budget one year out of its history and it is only a valid concept for private ventures.

Never heard that before and I really have no idea how they can sincerely justify their stance, even after studying money markets and financial instruments for many years.

I guess I just don’t get it, but those inner city youths driving new BMWs, and owning houses without 1/3 my income or 1/10 the education have it figured out. /s


11 posted on 10/07/2013 6:25:14 PM PDT by Cvengr (Adversity in life and death is inevitable. Thru faith in Christ, stress is optional.)
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To: RightGeek
The Debt Ceiling is the settled Law of the Land.

Fixed.

12 posted on 10/07/2013 6:29:47 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: no-to-illegals

They say... ObamaCare is Settled Law.

I say... The Debt Ceiling is also Settled Law.


13 posted on 10/07/2013 6:30:35 PM PDT by Responsibility2nd (NO LIBS. This Means Liberals and (L)libertarians! Same Thing. NO LIBS!!)
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To: RC one

I don’t see how the Dims can force anyones hand with the debt ceiling. Obama has said the US will default. The US will not default and Obama will pay the interest on the debt.


14 posted on 10/07/2013 6:32:24 PM PDT by JLS
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To: JLS

I would be calling the Sec of Treas in front of the finance committee now and have him explain his bosses remarks regarding default.


15 posted on 10/07/2013 6:43:41 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va

You also have to pay back the principal on any debt maturing, probably no small sum.


16 posted on 10/07/2013 6:48:00 PM PDT by edhawk
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To: central_va

That is an excellent idea. Ask him whether the administration plans to follow the law in the event the ceiling is not raised.


17 posted on 10/07/2013 7:30:12 PM PDT by JLS
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To: edhawk; JLS; central_va

Clearly this is political posturing on both sides.

As long as we (the IRS) is collecting tax revenue, we will not default.

Principal payments on maturing debt will be refinanced by the FED and it’s QE* policies.


18 posted on 10/07/2013 7:38:52 PM PDT by Zeneta
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To: cotton1706
Right. And the SECOND AMENDMENT is also the ORGANIC LAW OF THE LAND and that hasn't kept obozo and his fellow libtards from mucking about in it!!!
19 posted on 10/07/2013 7:42:36 PM PDT by Dick Bachert (A)
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To: edhawk
You also have to pay back the principal on any debt maturing, probably no small sum.

Sometime maybe, but it can be rolled over now. It would be trouble if the interest rate goes up, but Ben Bernanke won't let that happen.

20 posted on 10/07/2013 8:13:57 PM PDT by slowhandluke (It's hard to be cynical enough in this age.)
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To: cotton1706

Clearly the national parks need to devolve to the states to manage them. NPS cannot keep a sidewalk open.


21 posted on 10/07/2013 8:18:34 PM PDT by FlyingEagle
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To: cotton1706

Bookmark


22 posted on 10/07/2013 9:16:55 PM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: VerySadAmerican

They can’t at least not yet. But the could get judgements in world courts and seize overseas assets.


23 posted on 10/07/2013 9:35:02 PM PDT by FreedomNotSafety
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To: cotton1706

Also, Immigration control is the law of the land.
Prohibition of spending unappropriated monies is the law of the land.
Tax privacy is the law of the land.
Free practice of religion is the law of the land.
Prohibition of voter fraud is the law of the land.

Obama ignores them all, and the Republicans just sit back and do nothing.


24 posted on 10/07/2013 10:09:05 PM PDT by oldbill
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To: cotton1706; All

Related: http://www.freerepublic.com/focus/f-news/3076150/posts


25 posted on 10/07/2013 10:13:40 PM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: cotton1706

That’s why the current balloons floating around are ‘the 14th amendments’. When “It’s the law of the land” starts to become the focus point on the debt ceiling Obama point out the 14th amendment is the Constitution and trumps the law of the land.


26 posted on 10/08/2013 2:35:01 AM PDT by Usagi_yo
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To: Cvengr

There is no Debt Ceiling. The debt has already gone thru the roof. The FED and the ECB are running the printing machines faster then ever. The global debt problem is a bomb shell waiting to explode. And there are plenty of these bombs hidden in many countries and if one goes up like in greece or cyprus they’ll heat up the other ones left. Our generation will see the fall of the Fiat money for sure.
This has happend in the past and it’s likely to happen again. I’ts written in the Bible, the Tenakh and the Quran.

“If thou lend money to any of my people that is poor by thee, thou shalt not be to him as an usurer, neither shalt thou lay upon him usury”
Ex 22,25
http://www.kingjamesbibleonline.org/Exodus-22-25/


27 posted on 10/08/2013 3:18:53 AM PDT by SgtBilko (Illegal immigration)
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To: FlyingEagle

“But as if on cue, some Republicans are already using the same Democrat talking points about the risk of default.”

This is one of the major weaknesses of Republican legislators and pundits. They adopt Demspeak in every situation where there is disagreement. Thus, half of the battle is conceded before it is argued.


28 posted on 10/08/2013 4:09:18 AM PDT by maica ( Why deal with the Constitution? ItÂ’s written in cursive.)
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To: cotton1706
This is part of the Supreme Law of the Land, which Dems also routinely ignored:

"The United States shall guarantee to every State in this Union a Republican Form of Government, and shall protect each of them against Invasion; and on Application of the Legislature, or of the Executive (when the Legislature cannot be convened), against domestic Violence."

29 posted on 10/08/2013 6:16:20 AM PDT by alancarp (Obama will grab your guns and ship them to Mexican drug mobs.)
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To: cotton1706

Hear, hear, these words of wisdom.


30 posted on 10/08/2013 6:56:31 AM PDT by veracious
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To: central_va

If ALgore AKA Manbearpig AKA 2ndChakraManatee were here, he’d say , “It’s settled science”.


31 posted on 10/08/2013 7:12:08 AM PDT by TurboZamboni (Marx smelled bad & lived with his parents most his life.)
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To: maica

Amen!

Even Boehner on Sunday used the word default.

Uggg....


32 posted on 10/08/2013 9:35:05 AM PDT by NOVACPA
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To: cotton1706

These “talking points” need to be posted/eamiled to EVERY Republican and conservative Deamoncrat.


33 posted on 10/08/2013 11:09:28 AM PDT by Bobby_Taxpayer
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To: Bobby_Taxpayer

there are no conservative Democrats


34 posted on 10/08/2013 11:09:50 AM PDT by GeronL
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To: cotton1706

Unfortunately, the Republican elite will treat it as the law of the land. If the Republicans leading the charge don’t get Obamacare defunded before Oct 17, the GOP-elite are not gonna have anywhere near the fortitude they need to stick it out past the debt ceiling deadline.


35 posted on 10/08/2013 12:18:36 PM PDT by freedom462
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To: cotton1706

DOMA is the Law of the Land.


36 posted on 10/08/2013 3:57:26 PM PDT by Two Thirds Vote Aye (I was saying 'I hope he fails' before Rush was.)
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To: cotton1706

Are there any accurate articles that explain what will realistically what will happen if we miss the debt ceiling and end up going into “default” so to speak? Most sources I have tried to find are naturally flooded with hardleftist, pure chicken little hysteria. Is there any place where we can find truly accurate, unbiased, undistorted info in it? Has someone who is not hopelessly biased towards Obama written about it?


37 posted on 10/08/2013 4:28:09 PM PDT by freedom462
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To: cotton1706

Perhaps I am a bit old-fashioned, but where I come from a “ceiling” that reaches all the way to the sky is not a “ceiling”; it’s just the sky.

I might take the term “ceiling” seriously if they refrained from raising it at least once. That doesn’t seem likely to happen.


38 posted on 10/08/2013 5:31:17 PM PDT by hitkicker (The only thing worse than a politician is a child molester)
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To: cotton1706

Thanks for posting this article


39 posted on 10/08/2013 11:44:08 PM PDT by tsowellfan (www.cafenetamerica.com)
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To: RC one

My question is: Is Obama’s love for spending BIGGER than his hatred for America?

I guess we shall find out


40 posted on 10/08/2013 11:46:20 PM PDT by tsowellfan (www.cafenetamerica.com)
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To: cotton1706; All

The Treaty of Paris, signed on September 3, 1783, ended the American Revolutionary War between Great Britain on one side and the United States of America and its allies on the other.

17.83 Trillion dollars. What a great Patriotic number to make the limit of our Total National Debt that we will agree to pay back, with interest.

When we know, with certainty, our limit of Total Debt, we can then chose either the 10 or 15 % Reduction in TOTAL Federal spending on a year to year basis to get our National Debt back to the pre-TARP National Debt Level.

America will then returned to the Civilized World !


41 posted on 10/09/2013 8:05:17 AM PDT by Graewoulf (Traitor John Roberts' Marxist Obama'care' Insurance violates U.S. Constitution AND Anti-Trust Law.)
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To: cotton1706

Great post. I had some of this data, but this is the whole story. Forget the lefties scare tactics and the Black Swan fairy tale. This is real not a fairy tale.

“We are going to hear this erroneous talking point propagated by both parties over the next few weeks, so let’s put the myth to rest. The only way we default on the debt is if we fail to pay the interest on the public debt. According to the updated budget projection from the CBO, interest on the debt will be roughly $237 billion for 2014. Thanks to the short-term revenue benefits of the fiscal cliff and Obamacare tax hikes, the federal government is expected to rake in a record $3.042 trillion from the private economy this year.

Let’s engage in a simple math exercise. $3.042 trillion – $237 billion = $2.805 trillion. As long as the Treasury pays the first $237 billion in revenue to the shareholders of our debt, there will be no default, and we will have $2.805 trillion left to spend. Again, default is taken off the table. Discussion over.

What do you do with the remaining funds? You start funding core functions of government and those programs that people are already dependent on.

Social Security (retirement and disability) – $848 billion

Medicare – $505 billion

Medicaid – $298 billion

Defense – $582 billion

Veterans – $83 billion

Those expenditures account for roughly $2.3 trillion. The remaining half trillion can be prioritized as needed for other functions related to homeland security, national parks, or any other limited function. Hence, the debt ceiling is a built-in balanced budget mechanism. If Democrats want to fund other functions of government, they need to commit to a balanced budget. If they want to fund the HHS and the IRS, they need to get rid of Obamacare. If they want to fund the EPA, they need to get rid of the war on coal.

The power of the purse manifest in the House of Representatives, in conjunction with the debt ceiling law, reflects democracy at work, especially with divided government. It’s time we stop peddling the myth of default, and start using our leverage to restore constitutional government and bring relief to those who are losing jobs and suffering from the high cost of living engendered by the harmful activities of the unconstitutional aspects of government”


42 posted on 10/11/2013 9:41:21 AM PDT by Grampa Dave ( Boycott Reno & Las Vegas until those in control there, remove Reid from the senate!)
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To: cotton1706

The federales are bankrupt.
No amount of juggling the numbers around will change that.


43 posted on 10/11/2013 10:45:05 AM PDT by Repeal The 17th (We have met the enemy and he is us.)
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To: Usagi_yo

it is interesting that the 14th amendment section 3 states that those not upholding their oath to the constitution shall be banned from ever holding any office again.


44 posted on 10/11/2013 1:43:12 PM PDT by teeman8r (Armageddon won't be pretty, but it's not like it's the end of the world.)
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