Comment by Jim Campbell
This mush mouthed senator is a complete contradiction with his statements on the budget. Is there nobody in Washington willing to stand up and say this is all Obama generated BS, that there will not be a default in interest payments, Social Security, Medicare, and the military will all be paid. It’s time to let this liar-in-thief twist in the wind.
One may question my motive in using facts and numbers brought forward by two conservative think tanks, The Cato Institute, and the Heritage Foundation? Would it not be more irresponsible to bring you information from those who are largely at fault for our current economic situation and run ads like the one below? Doubt me? Which party brought us the current failed departments and programs and hasn’t had an idea since the sixties? Think about it.
If the government is not able to borrow more money after Aug. 2, spending will have to be reduced to the amount of revenue that the government has. That would require roughly a 44 percent cut in federal spending.
This will almost certainly hurt. But it’s not the same as default. During August, interest payments on the federal debt will total roughly $29 billion, meaning that there will be sufficient revenue to meet our obligations to creditors. If the Obama administration is truly worried that we might not do so, they could always support legislation by Sen. Pat Toomey (R-Penn.) that would require the Treasury Department to pay our creditors first.
In addition, some $467 billion in government bonds is expected to come due during August, and will have to be rolled over. Though this rollover requires Treasury to enter the debt markets to purchase new securities, it is not technically “new” debt, and so does not run afoul of the debt limit.
“I bet there won’t be a single Republican vote to raise the debt ceiling at the end of the day,” McConnell said in an interview with conservative talk radio host Laura Ingraham. The remark was in response to Ingraham’s reference to a new Gallup poll showing that most Americans oppose raising the debt ceiling.
Mr. Obama and his economic team have warned of “economic catastrophe” should Congress fail to raise the debt ceiling by Aug. 2. Republicans, calling it irresponsible to raise the debt limit without fiscal reform, have insisted on massive spending cuts in exchange for their votes.
McConnell told Ingraham that there’s no question the debt ceiling will be raised somehow. “If anybody seriously doubts that the U.S. is going to renig on its credit for the first time in history — that’s just not going to happen,” he said.
Furthermore, the Senate leader said he’s still interested in reaching a deal with the president “that cuts spending and makes a difference for the country.”
However, McConnell said, Mr. Obama’s interest in including revenue increases in the deal has left Republicans with two bad choices: “either sign onto a bad deal that raises taxes or go into default and allow us to have co-ownership of a bad economy.”
“I refuse to help Barack Obama get re-elected by marching Republicans into a position where we have co-ownership of a bad economy,” he said.
McConnell said Democrats could sign onto his plan even though it would leave them responsible because “They want to raise the debt ceiling.”
“We know that’s going to happen,” he added.
On the Senate floor today, McConnell said that “Republicans will spend the next two weeks fighting for” significant cuts and spending reforms by voting on a balanced budget amendment.
“If these debt negotiations have convinced us of anything, it’s that we can’t leave it to politicians in Washington to make the difficult decisions they need to get our fiscal house in order,” he said. “The balanced budget amendment will do that for them.”