Skip to comments.Congressman King says October 17 “not a default date”
Posted on 10/14/2013 12:54:03 PM PDT by Tailgunner Joe
Republican Congressman Steve King is striking back at Democratic Senator Tom Harkin for suggesting King is wrong to suggest the October 17 debt limit date is a fiction.
I hope Tom Harkin understands when we reach the debt limit that doesnt mean default, King says. Default on our debt would be if we failed to service our debt which requires that we pay the interest and then, at a minimum, roll over the principle of our debt which means we could borrow money from the Saudis to pay off Chinese bonds or vice versa or we could borrow money from the American people to pay off bonds from Saudi Arabia or China.
Harkin said last Thursday it is bizarre for King to suggest the president has the authority to reorder federal spending plans, pay the interest on the national debt, and put off repayment of the bonds. That would be like telling creditors to take a hike, according to Harkin. King accuses Harkin of injecting a fear factor into the debate and King argues Americans are paying enough taxes to the federal government to cover the interest on the debt.
Were spending about eight percent of our cash flow, of our revenue stream, on interest. Thats roughly $18 billion a month. Weve got some $240 billion or so a month coming in, King says. Were a long ways from defaulting on our debt.
King, though, says congress cannot go indefinitely without voting to raise the so-called debt ceiling unless there are significant cuts to the federal budget.
But reaching the date of October 17 is not a drop dead date. It is not a default date, King says. Its just a date that the government, the Obama Administration has said they think they run out of borrowing capacity.
King cites last weeks analysis from Moodys a credit-rating agency that concludes the U.S. government would continue to pay interest and principal on its debt even if congress fails to raise the debt limit. King says the debt limit is an effective check and balance congress can use to influence the president to make concessions.
King made his comments during an interview with Radio Iowa.
The other King is giving the Kings a bad name.
You are missing the point. I agree the money is in the checking account. But, Obama will not write the check to make the interest payment. Therefore we will default. People are not listening to what the king is saying.
IF there is a default it will be because King Barrack wants there to be a default.
“You are missing the point. I agree the money is in the checking account. But, Obama will not write the check to make the interest payment. Therefore we will default. People are not listening to what the king is saying.”
one thing to keep in mind though. these lazy, good for nothing, lard asses, are not going to destroy their no lifting, cushy good for nothing jobs.
they won’t let this whole thing crash on purpose.
Was trying to remember your handle this AM...
Got something to bounce off of you -
The concept of Secession, does it bother leftists so much because it’s a sort of “mini” Rapture, where the people who don’t believe as they do “escape” the dystopian society that they intended to impose on everyone?
If he does that, then the credit rating will be impaired. Raising the credit limit won't help at that point because we won't be able to afford to borrow more. The dollar fails. There is no excuse for a default, but Barry is anxious to crash our country.
The monthly disbursements amount to around $319 billion. Tax revenues are around $250 billion. We must pay the $18 billion in sovereign debt. That leaves the coffers short about $51 billion per month based on current spending. That's some serious cutting. If you don't pay the EBT loafers, you'll have riots. We had a test run over the weekend.
From my conversations with libinlaws,
there seems to be some higher virtue in
“being in the same boat”.
They seem to get really upset with people who are planning on not being in that “boat” that they are creating.
They get upset over the concepts of secession, Rapture, and even prepping,
all of which involve people not on board with the leftist plan having an escape route.
If Obama doesn’t make the debt payments.... then... it is time to circulate impeachment papers.
If he doesn’t make the payments it’s time for a coup.