The U.S. Debt Ceiling Fallacy: Agreement Or Not, There Will Be No Default – Forbes
By Richard Finger
Black’s law dictionary has this to say about “default”: The omission or failure to fulfill a duty, observe a promise, discharge an obligation, or perform an agreement [or observe a promise or discharge an obligation (e.g. to pay interest or principal on a debt when due ].
Come October 17 if our dysfunctional Washington hacks do not raise our debt ceiling, ominous forecasting of imminent default on our $17 trillion burden pound the airwaves. Prevarications foisted by the progressive press-corps regarding the United States becoming delinquent on its Treasury debt are as preposterous as they are disingenuous. Whether premeditated lying or, equally likely, out of a stark darkness of matters economic the result is the usual fear mongering we have come to expect from their rumor mills.
Inconvenient as they may be, some facts are in order. The fiscal 2013 debt service for the twelve months ending September 30 will be somewhere around $420 billion. (Per the Bureau of Fiscal Service the actual figure of 11 months through August was just under $396 billion). IRS revenues for the calendar 2012 tax year will probably be around $2.3 trillion. That equates to over a five and a half times debt service coverage. So having enough money is not even close to the issue. There has been some discussion of what some are naming “prioritization of payments”.
Washington and the mainstream news media are on a scare campaign to mislead America. Failing to increase the debt limit does NOT mean America would default on its obligations. The US takes in about $200 billion a month, our monthly debt service is $35 billion, there is no need to increase the debt limit in order for us to keep making those payments. WAKE UP people, you’re being played.
Fact Check: Debt Ceiling Latest Presidential Hypocrisy