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Debt Ceiling Will Not Move Until After Labor Day

Written by Gary North on July 17, 2013

The official, on-budget debt of the United States government has hit a plateau. It remains $56 billion below the debt ceiling. It has not moved up for two months. It is locked at $16,699,396,000,000.

But the spending continues. The government has spent about $500 billion more than it has received in revenues so far this fiscal year. How was this possible?

“Extraordinary measures.” That is what the Secretary of the Treasury calls them. “Cooked books” is what they would be called in the private sector.

He has informed the Speaker of the House that he will run out of “extraordinary measures” sometime after Labor Day. At that point, he says, the government will default. (We can always hope!) His letter is here.

The Secretary of the Treasury called on Boehner to eat what Boehner called a “mud sandwich” when he voted for TARP in September 2008. Old Weepy John rolled over for Hank Paulson in 2008 in full public view. This was crony capitalism, pure and simple. Where did the $700 billion in TARP money go? Nobody knows. “Easy come. Easy go.” He will roll over for Obama before the end of the fiscal year. In his letter, Lew wrote this.

Protecting the full faith and credit of the United States is the responsibility of Congress because only Congress can extend the nation’s borrowing authority. No Congress in our history has failed to meet that responsibility. It must be understood that the creditworthiness of the United States is an essential underpinning of our strength as a nation; it is not a bargaining chip to be used for partisan political ends. I want to reemphasize what the President has said repeatedly regarding any threats to cause default in order to extract policy concessions from the Administration: We will not negotiate over the debt limit. The creditworthiness of the United States isĀ  non-negotiable. The question of whether the country must pay obligations it has already incurred is not open to debate. Congress has no choice but to protect our creditworthiness and our economy.

Translation.

You’re going go buckle, Johnny boy. Eat your mud sandwich, now or later. The President has got you by the short hairs, the same way Clinton had your predecessor Newt Gingrich back in 1995. Obama will blame you for all those Social Security checks that will not be going out in October. So you might as well eat your sandwich now. You’re going to eat it, one way or another.

 

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6 thoughts on “Debt Ceiling Will Not Move Until After Labor Day

  1. Old School Repub says:

    Boeher is milquetoast when it comes to fighting the Democrat Party, yet tough when it comes to members of his own party. Kicked small-government conservative Justin Amash from Michigan off his committees just because he disagrees with Big-Government Boehner and his moronic leadership team. How ironic.

  2. albertmaslar says:

    Stale but true: Figures don't lie but liars figure. Satan is the father of lies and his progeny run the US government…into the ground and eventual oblivion.

  3. One does not need to have a PhD in Economics to see a crisis coming

  4. The government withholding the truth…again

  5. Bob Marshall says:

    Present day America will have to collapse before it can rise from the ashes. Those who have read Rise and fall of the Roman Empire know that the same conditions that brought down the Roman Empire exist in America today. Corrupt government, too high and too many taxes, immigration, too much spent on military, too great expansion of empire and currency problems. For 120 years America prospered without the federal reserve, federal income tax or a IRS. Since 1913 our national debt has increased more than 5000 times and the value of the dollar has fallen by 96%.

  6. LittleMoose says:

    The government is lying to the American people so that they can continue to spend our money. It seems that debt ceiling laws mean nothing.