Money & The EconomyOpinion

The Propaganda of Defaults & Debt Ceilings

Understand what Obama’s doing, why he’s doing it & how his decisions are intended to influence you.

Raising the Debt Ceiling is the same as a credit card company raising your credit limit. It has nothing to do with paying what’s already owed. It simply allows you to spend more than you already owe. The Debt Ceiling doesn’t stop government from paying its existing bills any more than your credit limit keeps you from paying your existing bills. It isn’t possible to “default” when a debt ceiling isn’t raised. The whole purpose of a debt ceiling is to protect against defaulting.

The problem occurs when you don’t have enough sense to know to stop charging more than you can afford to pay. By Obama’s own admission, America is already there. That is exactly the cycle Obama is perpetuating. By his definition a debt limit is a circular that has no end as long as you want more than you can afford. We all know better. Until Obama most Americans hadn’t heard of the Debt Ceiling, because until Obama we didn’t have this perpetuating problem.

A humorous look at understanding the Debt Ceiling:


America already brings in enough revenue every month to pay for ALL of our essential services and still have money left over – including military and social security and existing interest on debt.

When Obama threatens military or social security payments, understand that he is voluntarily making those personal choices. It is not because there isn’t money to pay those particular items. It is only because he chooses those items from among all of the wasteful spending there is to choose. Obama is opting not to pay what will hurt Americans most. That is unconscionable fear-mongering. He is counting on you being so frightened at his prospects that your outcry pressures Congress to give him a higher debt limit … so he can keep spending more of other people’s money.

When we have someone at the helm who is not governing our money responsibly, it is our job to be the banker in the video.

Default Not at Issue, Federal Spending Is

Default. The only way the federal government would default on its debt in the event the debt ceiling remains unchanged is for the Treasury to choose to default—an utterly implausible eventuality. Suggestions to the contrary in the press and elsewhere are simply inaccurate and shameful.

(Click title link for full story.)

“Default” Is a Red Herring in Debt Ceiling Debate

Obama accused his opposition in Congress of threatening to “default” on America’s loans in order to make a political point.

“I am not going to have a monthly or every three months conversation about whether or not we pay our bills because that in and of itself does severe damage. Even the threat of default hurts our economy. It’s hurting our economy as we speak. We shouldn’t be having that debate.”

The “threat of default,” as Obama called it, is a red herring.

“Suggesting that the United States might default on its debt is factually wrong and shameful behavior on the President’s part,” Heritage’s J.D. Foster, the Norman B. Ture Senior Fellow in the Economics of Fiscal Policy, said yesterday.

The U.S. is not going to default on its interest payments, Foster said, and “this assurance rests not on congressional action to raise the debt ceiling, but on the simple fact that the Treasury has far more than enough funds to pay all interest as it comes due.”

Facts have been slim in the President’s rhetoric on the debt ceiling. And in his press conference yesterday, he dug himself into a deeper hole, again arguing against his toughest opponent: the Barack Obama of 2006.

Yesterday in his press conference, the President argued the opposite. This time, he said raising the debt ceiling was simply an acknowledgement of the country’s bills:

“America cannot afford another debate with this Congress about whether or not they should pay the bills they’ve already racked up.”

Click here to see Obama’s Congressional Record in arguing against the Debt Ceiling.

(Click title link for full story.)

One might reasonably ask of Obama (he being a man of endless personal resources), if he has The People’s best interests at heart why wouldn’t he choose to withhold his salary or travel costs – or those of Congress – rather than already-earned pay of those he and Congress are paid to lead? Why wouldn’t he defund programs of any number of glaringly wasteful other spending, like the ilk of lice nits or dry river beds, BEFORE messing with the earned pay that sustains our military and elderly?

As leader of a household, would you take food from the mouths of your children or spouse before you would your own? Would you keep your money in a bank if the bank was so poorly managed your money wasn’t there when you went grocery shopping or tried to pay a utility bill?

A leader holds himself aside from those who rely on them, because a leader is more responsible for making good decisions. Good leaders make decisions in favor of those who are most vulnerable and adversely effected by their decisions, before doing so in favor of themselves. That is what leaders do. They live by example. If for no other reason than to protect the less capable of protecting themselves, those for whom they are the most responsible. That is a leader’s job. Why else have one?

Obama’s personal choice in threatening military pay is an especially egregious act for a leader that calls himself ‘Commander In Chief’ of the very men and women he is personally threatening. We pay Obama and Congress to make good decisions and to set proper examples. When government fails in their job it is their obligation to absorb the consequences of those failed decisions, not shuffle them onto the least among us. That is their moral duty. That is their leadership obligation. That’s why they make the big bucks.

Enough is enough. If it doesn’t sicken you that a president would willingly use and knowingly hurt the most vulnerable and deserving among us, to coerce his way in a course of action that is self-serving, irresponsible and self-destructive, then something is very awry with the way you’re thinking.

Now it’s clear what Obama is doing and why he’s doing it. The only question remaining is, how are you going to allow his decisions to effect you? Just as Obama is counting on public outcry over his choices, to influence Congress, the reverse is true. When Americans decry what Obama is doing for the unconscionable reasons he is doing it, that influences him.

My family is reliant on one of the sources of income that Obama chooses to threaten. Common sense dictates that at this juncture Obama will not risk turning a nation of people against him by realizing threats of such an egregious nature. I am willing to call that bluff so we can get America’s spending back in line. And I will never forget that it is Obama’s doing – and only Obama’s doing – if the day comes when I can’t pay my bills because HE wanted more for himself, from My money, than what he was willing to repay in what he already owes Me.

Stand firm.

Call and email your legislators to Stop Spending.
Voices in number DO make a difference.
Find yours here: Contact Elected Officials

(Click on image to enlarge and clarify.)

DebtCeiling Jan2013

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Suzanne Webb

Christian American Patriot, Opinion Commentator. Retired from public and private sector business administration. Unless otherwise attributed all content is opinion.

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