The House and Senate will be voting on the debt deal reached last night between Obama and the Republicans.
Obama and his GOP enablers say they’ll cut $2 trillion in federal govt spending over a span of TEN years. Yeah, right. If you believe that, I have a condo on Mars to sell you.
The real deal made is to increase the U.S. federal government’s debt ceiling by another $2.2 trillion, which will “tide us over” until next year’s election. All this at a time when our national debt is already $14.3 trillion and is projected to be $15 trillion by the end of this year, which will make our national debt more than 100% of America’s GDP. This is the same debt to GDP ratio of the bankrupt European PIIGS (Portugal, Ireland, Italy, Greece, Spain). The only difference between the US and the PIIGS is that there’ll be no one to bail us out.
More than ever, we need to be well-informed, have our wits, and not be bamboozled by Obama’s and the Demonrats’ scare-mongering. Investor’s Business Daily has an excellent editorial, “Five Big Debt Debate Lies,” July 29, 2o011. Here they are:
Lie No. 1
Aug. 2 is the drop-dead deadline
This has been the White House line for months, and it’s so widely accepted that several news outlets have countdown clocks on their sites. It’s not true. The New York Times on Tuesday reported that the government will have enough cash to pay all its bills until Aug. 10. And Wells Fargo Securities chief economist John Silvia says the debt ceiling won’t be hit until sometime in September.
Lie No. 2
We risk defaulting on the debt
Despite countless warnings, there’s zero chance the federal government will default, since each month the government takes in far more in taxes and fees than it pays in interest. The White House itself, while publicly clanging the default alarm, has been privately reassuring banks that it won’t default on the debt, even if the debt ceiling isn’t raised.
Lie No. 3
Social Security payments are at risk
“I cannot guarantee that those checks go out on Aug. 3 if we haven’t resolved this issue, because there may simply not be the money in the coffers to do it,” Obama claimed earlier this month. Also a complete fabrication. In June, for example, the government took in more than $250 billion, according to Treasury’s monthly report. That was enough to pay that month’s worth of interest, plus all Social Security, Medicare, Medicaid and veterans benefits, and all Defense and Homeland Security costs, with billions of dollars left over.
Lie No. 4
A long-term debt ceiling hike is a must
Democrats refuse to sign a short-term hike, claiming that poses a risk to the economy. “A short-term extension would not provide the certainty the markets are looking for,” Senate Majority Leader Harry Reid claimed. Obama has echoed that concern. But it’s a phony connection. For example, Congress raised the debt ceiling 17 times during President Reagan’s eight years in office — an average of once every 5 1/2 months — and the economy boomed.
Lie No. 5
Obama wants a deal
We can’t prove this is a lie, but Obama’s given every indication that it is. After all, he’s done nothing to lead this to a resolution and plenty to disrupt it, all while claiming he wants an agreement. More likely, Obama thinks a debt crisis he can pin on Republicans is the path to victory in 2012.
There’s no question that failing to raise the debt ceiling in a timely fashion would be economically disruptive, if for no other reason than that the economy is so anemic it can ill afford any shock. But it’s also clear that, even if Congress misses the Tuesday deadline, the sun will still come up Aug. 3, and all these lies will be proven to be false.
To read the IBD editorial, go here.