By David Kraemer – ConservativeAmerican.org – Leading the way Right
If no deal is reached on raising the debt ceiling (the limit on how much money the USA can borrow), the artificially created fear is that the nation would then default on its debt payments.
If a default on debt payments ever were to happen, it would only be because the President and the Treasury Secretary wanted it to happen to make a political statement. That is not a likely outcome of no deal being reached. In reality, even with no increase in the debt ceiling, the USA will NOT default on its debt payments. To claim we would, is pretty much a lie.
The nation has plenty of income each month through taxes to make all of its debt payments. That would continue with or without a deal to increase our borrowing limit. The Treasury Secretary, working at the pleasure of the President, can decide to make all of our debt payments. It would be the only wise thing to do.
So why the fuss? The reality is that if we can’t continue to borrow more money, then — be still your heart — spending cuts will need to be made.
Instead of increasing the debt limit, the nation could decide to cut spending. Yes, that would mean cuts in entitlements and defense. It would also mean getting rid of entire federal departments that were created ignoring the US Constitution, such as the Department of Education. We have more ideas we suggest here.
So, is the default talk just a scare tactic both parties use? Is it the Default Lie? Or would the government actually decide to keep on spending and simply not pay its bills. It is at least worth discussing.