The government can hit the limit and avoid a first-ever default because that can only occur if payments to bondholders are actually missed. And those obligations, the Republicans say, can be met with the tax revenue that will continue to pour into the Treasury, regardless of whether Congress raises the borrowing cap. All of the government’s other bills — including those for defense contracting work, office supplies and highway maintenance, and to cover federal employees’ paychecks — are secondary, they contend, and can be delayed or cut without panicking financial markets.
Ding ding ding ding ding ding
Winner winner chicken dinner!
Oh my. For the first time I’ve seen the truth in a mainstream publication on this issue.
Brian Faler (the author), I owe you a drink. Next time I’m in DC I’m looking you up. You printed what nobody else would up until now. THE TRUTH.
A growing number of Republicans are scoffing at warnings that failing to raise the U.S. debt limit would trigger a financial catastrophe. Treasury Secretary Timothy Geithner’s cautions are merely aimed at stampeding Republicans into lifting the $14.3 trillion limit, said Toomey.
Now listen up “Conservatives” and “Tea Partiers”: You just saw the truth in a mainstream media publication. This means it’s no longer a “secret.”
Now tell the rest of the truth: Cutting deficit spending will decrease GDP. It cannot be avoided. We might like to, but we can’t. We must accept the penalty that the frauds and scams of the last thirty years have put before us.
We can, and will, survive doing that. But we must do it, and we must do it now, because the longer we wait the worse the damage will be.
NO MORE DEFICIT SPENDING – PERIOD.