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Two Obvious Facts on the Debt Ceiling Showdown

Written by Robert Murphy on October 10, 2013

Big “showdowns” in Washington are always hype, with both sides distorting the facts so that the hapless citizen–whether he watches Fox or CNN–focuses on irrelevant details and misses the big picture. When it comes to the recurring conflict over raising the debt ceiling, here are two obvious facts that explode just about everything that the Republicans and Democrats are saying:

OBVIOUS FACT #1: Refusing to raise the debt ceiling is equivalent to insisting on a balanced budget. Any Republican politician who has (a) championed a balanced budget amendment but lamented the difficult road ahead while (b) voted to raise the debt ceiling, is obviously insincere (or doesn’t understand accounting). Either way, genuine fiscal conservatives cannot take such a person seriously anymore.

OBVIOUS FACT #2: If the debt ceiling is not raised, the government by no means needs to default on its outstanding bonds. There is an enormous amount of revenue flowing in, with which the government could pay existing creditors, as well as people owed money through Social Security, pensions to retired government workers, etc. Thus when President Obama and other Democrats say that if they don’t get their credit limit raised, they will crash the Treasury market, they are (using their rhetoric) holding the global credit markets hostage to their spending goals.

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6 thoughts on “Two Obvious Facts on the Debt Ceiling Showdown

  1. Victor Barney says:

    Try the soon coming Hebrew, not Greek, inspired Revelation's account given about the "forbidden foreigner"(Non-Anglo-Saxon), head "Anti-Christ"(Marxist, also written to be the ONLY unforgivable sin) put over u.s. by our "women alone" according to our MSM, which appears to be EXACTLY what also first got Adam & Eve thrown out of Eden! Now they're working on off the earth! Luckily for u.s. we have the Jewish, not Greek, born Savior & high priest, "Yahshua," meaning in Hebrew that "Yahweh means salvation on our side because it still is, always has been, and always will be about Jerusalem, NOT Rome! Read Zeph. 3:9, Acts 26:14, 1 Cor. 4:6 and then tell me that it does not say that Hebrew is the ONLY spiritually inspired language, that last two examples even saying so in Greek! No folks, it's not going to end well for anybody, first for Anglo-Saxons & Jews & then 3 1/2 days later for everybody else, also as written…

  2. "There is an enormous amount of revenue flowing in, with which the government could pay existing creditors, as well as people owed money through Social Security,…"

    Which proves what a lot of people who do understand accounting have been saying for years: there are no surpluses left in the Social Security trust funds. All those SS checks that go out every month are paid out of the general fund; the money comes in, the money goes out. The trust funds were never off-budget, sequestered and protected from being raided by the DC politicians, as they were designed to be.

  3. "If the debt ceiling is not raised, the government by no means needs to default on its outstanding bonds."

    But they are threatening to, like the bullies they are. This is very much akin to their tactic of picking the few government services people will miss and cutting those instead of the layers and layers of fat nobody will even notice are missing.

  4. Most of the media use the White House talking points as if they were breaking news. The un-informed and slightly informed believe what they hear or read. That is where Obama derives his power. So, ultimately, decisions are controlled by those least equipped to understand the issues. See my blog at http://cranky-conservative.blogspot.com

  5. Reverend Joe says:

    Here is what the numbers say……..

    Amount needed to pay the interest on the national debt each month….. $18Billion.

    Amount of money coming into the government each month…. Approx $125Billion.

    We cannot possibly default on the debt! It's simply NOT possible. Could they REFUSE to pay what we own? Of course. Obama has demonstrated that the law doesn't apply to him and does what ever he wants. Would non-payment be the fault of the republicans? Not unless they all changed their name to Obama. Non-payment would be the SOLE fault of the president.

  6. Shut it down, pick up all those responsible for ignorant debt-based spending, and hold them personally accountable for every penny they irresponsibly spent, or agreed to spend, that doesn't represent "the people" for a prosperous society. Easy enough to determine, read Murray Rothbard, Walter Block, Hazlett, Mises, etc. Put the bad guys (and gals) in a cage until we can decide on appropriate consequences to their actions. Inactions too, those that just signed in as "present" that should have voted against some of this mess, should have a special cage as well. Maybe with air conditioning and a toilet. But the others, mmmmm treat them as the trash they are.