Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Live updates: the shutdown--Moody's offers different view on debt limit
Washington Post Blog ^ | 10-9-13 | Lori Montgomery

Posted on 10/09/2013 1:42:44 PM PDT by RKBA Democrat

Edited on 10/09/2013 1:43:50 PM PDT by Admin Moderator. [history]

One of the nationís top credit-rating agencies says that the U.S. Treasury Department is likely to continue paying interest on the governmentís debt even if Congress fails to lift the limit on borrowing next week, preserving the nationís sterling AAA credit rating.


(Excerpt) Read more at washingtonpost.com ...


TOPICS: Constitution/Conservatism; Crime/Corruption; Front Page News; Government
KEYWORDS: debtceiling; default; moodys; obamalies
Navigation: use the links below to view more comments.
first previous 1-2021-25 last
To: familyop
S&P is far more honest and credible than Moody’s.

Why do you say that?
21 posted on 10/09/2013 8:26:25 PM PDT by Brown Deer (Pray for 0bama. Psalm 109:8)
[ Post Reply | Private Reply | To 20 | View Replies]

To: RKBA Democrat

bump


22 posted on 10/10/2013 7:22:12 AM PDT by EBH ( The Day of the Patriot has arrived.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: RKBA Democrat

The reality of a real debt limit:

http://www.freerepublic.com/focus/news/3076090/posts?page=1

The Debt Ceiling is the Law of the Land
redstate.com ^ | 10/6/13 | Daniel Horowitz
Posted on Monday, October 07, 2013 6:07:28 PM 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.


23 posted on 10/11/2013 9:51:32 AM PDT by Grampa Dave ( Boycott Reno & Las Vegas until those in control there, remove Reid from the senate!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Brown Deer

Because S&P honestly downgraded U.S. debt among other things. Sorry I didn’t reply sooner.


24 posted on 10/11/2013 3:18:50 PM PDT by familyop
[ Post Reply | Private Reply | To 21 | View Replies]

To: familyop

so what was dishonest about this report?

https://www.moodys.com/research/Moodys-Updates-on-Rating-Implications-of-US-Debt-Limit-Long?lang=en&cy=global&docid=PR_220066


25 posted on 10/11/2013 3:38:03 PM PDT by Brown Deer (Pray for 0bama. Psalm 109:8)
[ Post Reply | Private Reply | To 24 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-25 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson