October 11, 2013
The other day President Obama went before the American people and let loose a diatribe against the Republicans in the House over the possibility that their recalcitrance regarding the debt ceiling would lead to the US defaulting on servicing its debt to bondholders. He claimed that the GOP would be threatening to "burn the house down" if they did not get exactly what they want from the government shutdown and debt ceiling debate, when all the GOP wants is for the Obama administration to allow the American people to take advantage of the same waiver policy from the requirements of the Affordable Care Act that he has allowed for businesses and unions. For this, Obama has claimed that the GOP-led House does not "want to pay the bills."
This language is highly dubious for Obama to use and he knows it. What does it mean exactly for the US government to "pay the bills?" What are the bills and what are the luxury items that are purchased with your tax dollars?
We all have bills and we all know how to classify them even if those definitions are not word for word what you might find in Webster's. Nevertheless, we all understand the difference between money designated for the mortgage, electricity, and water and the money set aside for home improvement projects around the house. President Obama is attempting to lump the home improvement project in with the actual non-discretionary bills.
The debt ceiling is the total amount of money that the US government can borrow to cover spending that the revenue collected in taxation does not equal. It is, in short, the limit on your credit card. The threat of "default" is in that the United States would not be able to pay the interest on that debt to the lenders of the credit. We collect more than enough money each month to make these payments.
The interest payment each month for the US debt is roughly $20 billion, and the amount of revenue brought in each month through taxation is roughly $200 billion. There is plenty of money to satisfy the interest payment. What Mr. Obama is attempting to get you to believe is that the totality of federal spending is itself a bill that must be paid...now. Things like the food stamp program, paying regulators to see to it that private industry is punished because of global warming, or paying for Michelle Obama's vacations to Martha's Vineyard are not bills. They are luxury items that the federal government spends money on and, in some instances, cause the need for the increase in the debt limit.
What Obama is attempting to do is scare the American people and the global markets to the point that the GOP is pressured to give in; to end the government shutdown, increase the debt limit, and vote them out the majority in 2014. He is worried that without a debt ceiling increase he will be prevented from using the Treasury to buy votes of various special interest voting groups. If he is limited to just paying the interest and the mandatory spending that the leftover revenue can cover, then the dream of transforming the US into a European socialist country will be severely damaged.
Characterizing all federal spending as "bills" the federal government must pay obfuscates the meaning of the word "bill." No one individual family looks at the entire amount of spending from month to month as bills. There are either bills or luxuries and, if you are a responsible adult, when the money becomes smaller than the total amount of spending you do not apply for a credit card limit increase to supplement what you do not have in cash.
Obama is being incredibly irresponsible with the people's money. He is attempting to get the GOP to join him in spendthrift ways, while at the same time whipping you into a frenzy to punish them at the polls for contemplating "default" to achieve ideological ends. In reality what he is doing is lumping huge amounts of debt onto the ledger of the United States for the purposes of bringing about the financial collapse of the US economy in order to restructure the United States into a highly regulated, highly socialized State without having to go through the amendment process.
Don't believe me? Just examine the phrase Cloward-Piven Strategy and see for yourself. The name Piven is in reference to Francis Fox-Piven and she was one of Obama's professors while at Columbia and was an advisor during the early days of his first term.
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