Getting Serious About Government Spending – And Non-Tax Revenue

debt-ceiling-cartoon

Somewhere in all the drama of the ObamaCare roll-out panic, the New York Times published it’s opinion on the stances John Boehner and the House Republicans are taking on raising the debt limit.  The title included the word “Ransom”.

On Wednesday, Treasury Secretary Jacob Lew sent the House a very serious warning that, for the first time, the United States would be unable to pay its bills beginning on Oct. 17 if the debt ceiling is not lifted. House leaders responded on Thursday with one of the least serious negotiating proposals in modern Congressional history: a jaw-dropping list of ransom demands containing more than a dozen discredited Republican policy fantasies.

We’ll refrain from deliberately sabotaging the global economy, Speaker John Boehner and the other leaders said, if President Obama allows more oil drilling on federal lands. And drops regulations on greenhouse gases. And builds the Keystone XL oil pipeline. And stops paying for the Consumer Financial Protection Bureau. And makes it harder to sue for medical malpractice. And, of course, halts health care reform for a year.

The list would be laughable if the threat were not so serious. A failure to raise the debt ceiling would cause a default on government debt, shattering the world’s faith in Treasury bonds as an investment vehicle and almost certainly bringing on another economic downturn. Unlike a government shutdown, a default could leave the Treasury without enough money to pay Social Security benefits or the paychecks of troops.

Amen, Hallelujah and Thank You Jesus.  YES, please.  And what makes The New York Times think that the GOP isn’t serious?

What the NYT, Barack Obama and heavens knows who else seem to miss is that the very first item on that wish list, opening up federal lands for oil drilling, far from being expensive, is a net revenue generator.  Some kind of rent has to be paid, either in cash or product.  That means money would be coming into the treasury rather than out of it.  Construction of the Keystone pipeline would put money into the economy and employ a number of workers until it is completed rather than just leaching cash from other producers.  Greenhouse gases are a hoax and medical malpractice awards make insurance rates so high, medicine is looking less and less of a desirable profession for ambitious people.

I disagree on delaying the implementation of ObamaCare.  Give the people fourteen months to suffer under it before the next election.  Four weeks is not enough time to change the minds of the uninformed voter.

Whether or not Boehner and company hold the line on this will be interesting, but at least it’s out there.  Want the government funded?  Well, here’s where we start.  Will they get the whole wish list?  No.  Will some of it happen?  The lesser stuff, probably.  Will we default?  Doubtful.

Will this ever get respect from the political left as a legitimate way to do business?  Not a chance, even though it’s far more realistic than anything the Dems have in mind.

This one is worth watching, especially when the NYT calls Republican goals “fantasies” and the administration is literally stretched over a barrel.  A 42 gallon barrel.  Millions of them.

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1 reply

  1. I seem to remember a certain Senator Barack Obama voting to refuse to raise the debt limit – did the New York Times denounce Senator Obama?

    The whole article is utterly dishonest (as one would expect from a newspaper that covered up for Stalin over the murder of millions of human beings in the 1930s in the then Soviet Union, pretended that the “Republicans” in the Spanish Civil War were not Communist dominated, supported the treasonable advice of the “Old China Hands” in the State Department during the Chinese Civil War of the late 1940s, pretended that Fidel Castro was not a Communist…. and on and on).

    “Be specific about the dishonesty on this occasion”.

    Certainly.

    The New York Times pretends that government debt is sold in a normal market – it is not (and they know it is not).

    In reality the Federal Reserve creates money (from nothing) and lends it out to the banks (and other such) on the understanding that they will use the credit-money to buy government debt (basically lend it back to the government that created it in the first place).

    So talk of “the full faith and credit of the United States” (or of the United Kingdom – or any of the government that engages in this practice) is just B.S.

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