In fact, I believe each household’s personal obligation towards the national debt is somewhat more than $500,000. But don’t worry, folks. It’s not going to stay that high… it’s getting higher by the second. And according to Lord Obama, we’re in recovery.
It astounds me, then, that so many of the people voted for Obama are still willing to defend their support even after witnessing his abysmal failure (or “success” if his goal is to bankrupt the country before leaving office).
And they attempt to validate his performance, not by being able to point to any actual positive accomplishment, but rather reminding us how bad George W. Bush was. Or how bad off we would be if Sarah Palin were to become President. It’s like having a drunken pilot taxi one $100 million jumbo jet into another, only to have the passengers defend the drunken pilot by saying, “Think how much worse it would have been the pilot had been Foster Brooks!”
But now, in the midst of his manufactured financial crisis, once again, Barack Hussein Obama resorts to lies, deception, and sleight of hand to misdirect the attention of as many of his blind faith followers as possible… apparently still unaware that the vast majority of Americans have caught on to his tactics.
So it’s “Damn the torpedoes, Constitution and Democracy, full speed ahead!” by introducing seven new (or tried and true) lies in his arrogant hope to pin the blame for his broken campaign promise about “halving the debt” on the Republicans if possible, or all of Congress if it comes to that. The one person blameless for our situation? Why that would be Barack Obama, of course (just ask him).
Here are the new lies and deceptions, according to John Lott of Fox News (and why YOU should be aware of them):
1) Not increasing the debt ceiling means the U.S. government will default on its debt.
Nonsense! Default will only occur if the US fails to pay the interest on the money that it owes. Currently, that amounts to about 9% of revenue raised without raising the debt ceiling. Therefore, there is no reason we should default if a deal has not been struck. Note: This will become a SERIOUS reality as we move forward with the long-term commitments we have for entitlements like Medicare, Medicaid, Welfare etc. which is why we need to address these issues NOW. But we can meet our obligations come August in spite of the scare tactics being used by the Obama administration.
As Lott points out in his article:
Time after time, congress and the president have failed to agree on a debt ceiling increase and still there has been no default. Examples include: December 1973, March 1979, November 1983, December 1985, August 1987, November 1995, December 1995 to January 1996, and September 2007.
Indeed, this really shouldn’t even be a point of debate. The 14th Amendment to the Constitution requires that the debt payments come first before any other spending.
2) Until the debt ceiling is raised, uncertainty over the payment of U.S. debts will create chaos in financial markets.
Lott sums this up perfectly:
Given that the Constitution mandates U.S. debts be paid before any other spending and that sufficient money will be available to cover our interest payments, the only uncertainty arises from Obama’s actions. Will he try not to pay the interest? Even a delay of a day in paying this interest will create a default. Court action could eventually force Obama to follow the Constitution but a default would have already occurred. But there is a simple way to end this uncertainty: have the president declare now that he will indeed follow the Constitution and make those payments.
Incidentally, the mere failure to increase the debt ceiling itself does not mean default – as amply demonstrated by the Clinton administration in 1996. There was a limited government shutdown (duration: three weeks), but Clinton used existing revenues to pay the interest on the debt. The only way the interest on our debt doesn’t get paid this August is if Barack Hussein Obama purposely orders it to not be paid. So the truth in the matter is, the only danger we face is if he intentionally avoids paying the interest.
3) Obama doesn’t know if there is money to send off Social Security checks on August 3.
Pure nonsense, but Obama is playing this fear card the way he played the race card in the 2008 campaign. Again, according to Lott:
The president knows very well how much revenue will be available to send out checks on August 3. Indeed, enough money will be available to not only pay the interest, but to also cover all Social Security, Medicare, Medicaid and children’s health insurance, defense, federal law enforcement and immigration, all veterans benefits, Response to natural disasters.Terrifying elderly people who are dependent on their Social Security checks may make good politics, but it is unconscionable. Yet, these scare tactics aren’t really very surprising. The Democrats behaved no differently when they ran television ads bizarrely depicting Rep. Paul Ryan (R-Wis.) as pushing an old lady in a wheel chair off a cliff.
4) Mortgage interest rates will rise dramatically if the debt ceiling isn’t increased.
As is often the case when Obama opens his yap, the exact opposite is more likely to happen. Is this a sign of his ignorance or use of fear tactics? Either way, the man has no shame… and now, even less credibility to anyone with an iota of grey matter. Failure to raise the debt ceiling simply prevents the government from borrowing any more money. Less borrowing by the government could, in fact, lower interest rates. Another potential plus: The interest rate paid by the government could be reduced because it would have a smaller debt-to-income ratio.
5) Time Is Running Out! The Deal Must Be Done Immediately!
Well, you have to hand it to Obama: His Chicken Little “Sky Is Falling” approach worked in getting the Stimulus Package legislation passed (“It has to pass immediately or the economy will tank and we’ll see unemployment as high as 8 1/2 %!!”). A full trillion dollars later, the economy has tanked and unemployment has held firm at or near 9.5% … and we’re a trillion dollars further in debt.
Despite Obama’s insistence that a deal be completed by July 15 and Geithner’s claim that a deal had to be reached by July 22, as already noted, there have been many times over the last few decades where negotiations have extended past when the debt limit has been reached. The longest delay lasted three weeks. Besides claiming that there will be a default, no explanation has been offered for why the debate is any different this time.
Possibly all these claims of urgency are part of some grand strategy to scare people, but that strategy depends on voters not knowing what is necessary for a default to occur.
6) If government spending is cut, there will be a depression.
In 2009, President Obama assured us that a “temporary” increase in government spending would “stimulate” the economy. He was, of course, full of crap. Now he’s telling us, in effect, that we can’t cut that “temporary” increase — or we will plunge into a depression. Hey, Mr. President, your economic policies have put us pretty much there all by yourself. And since you claimed you got us out of the Bush recession over a year ago, this new recession is completely on you.
More to the point, from Lott’s article:
If Obama’s program — including a 28 percent spending hike since 2008 and more than $4 trillion in deficits — worked so well, why has our unemployment rate risen more than elsewhere? The European Union, Canada, South America, Japan, and Australia have all had smaller increases in unemployment compared to the U.S. after Obama’s “stimulus.” We have also had these shutdowns before and the numbers don’t show any negative impact on unemployment or GDP. Figures for the longest shutdowns during the fourth quarter of 1995 and the first quarter of 1996 are available here.
7) The value of the dollar will plummet.
Mr. President, once again, your own economic policies are pretty much doing this on their own. But what he’s trying to claim is that the dollar will collapse when we default. That would be true, except that there’s no reason, currently, for the US to default on its financial obligations if we don’t raise the ceiling. In fact, Lott points out that LESS government borrowing would bean lower future taxes which, in turn, might just make the US an attractive place to invest again. And, that foreign investment would cause the dollar to be strengthened. But don’t look for that to happen under Barack Hussein Obama’s watch.