Throw out everything you think you know about the debt ceiling, government spending, the "full faith and credit of the United States," and other such terms being thrown about in the current debate between Obama and the Democrats on one side, and Republicans and libertarians on the other.
More than likely, unless you are fully informed because you follow these matters very closely, everything you assume about such issues is false.
The things Obama is telling you are false. The things Senate Democrats are telling you are false. And the things being told to you by many Republicans of the eastern leadership establishment are false.
Even the economists who appear night after night on television news shows are peddling lies. Truthful and honorable economists who are honest and trustworthy are out there, but they are not the ones being paraded out before the public on a daily basis to parrot the Administration's propaganda.
The bottom line, the simple fact that nobody is telling, is that the so-called debt ceiling does not need to be raised. The ceiling is an arbitrary figure, a false limit, a ruse that allows politicians to spend more and more of our tax money. In the five years since Obama was elected the debt ceiling has been raised on a regular basis, not to enable the government to continue paying its current bills and debt but to enable it to increase its spending in the middle of a debt crisis. Thus, if Congress were to decide to disallow any new deficit spending above $17 trillion, nothing would change regarding the government's ability to pay its current bills, including interest and principal on the debt.
But even more importantly, the government cannot default on the debt because such debt does not involve a legally binding contract requiring payment. These "debts" are verbal commitments only, even with Social Security, Medicaid, and Medicare. You and your government did not sign a legally binding contract requiring the Feds to pay you. They merely verbally told you that they would do so, but as you can easily see on your annual Social Security statements, the government has fully informed you that it can change the law on Social Security and thus change the amount of payments it will send you any time it wants.
Economic guru Karl Denninger of The Market Ticker provides the complete details.
Note the gravity of what the government is telling you here. It is telling you, the citizen, that it has no binding obligation to pay you anything on Social Security, Medicare, and Medicaid. It can rob those trust funds to spend on other things, which it has always done. It can decide not to pay you at all in a financial calamity, such as a war in which the Treasury Department is obliterated by a bomb from a foreign entity. It can lower the amount you receive monthly without your consent.
Why? Because these things involve no legally binding contracts. They are merely verbal promises.
Further, as The Market Ticker aptly points out, the federal government does not even have to raise the debt ceiling to "meet its obligations." Why? Because the only obligation the federal government has is to pay the interest and principal on the existing debt, which, by the way, is a mere 10 percent of current tax receipts.
That's it. 10 percent of tax receipts. That means that the government will still have 90 percent of the money it collects from taxpayers to spend on its various and sundry programs.
Thus, there will be no default. Zilch. Zero. If the government is required by law to pay interest and principal on the current debt, and it takes in enough money from taxpayers to do so (10 percent of tax receipts), then how could the United States possibly "default?"
The truth is, it can't. Somebody is lying. In fact, a lot of people are lying.
The only reason Obama and the Democrats wish to raise the debt ceiling is to obtain a blank check from Congress to increase spending. It is all about the increase and not current debt.
And the burning question is, why would these demagogues wish to increase spending in the middle of amassing such devastating debt to begin with?
My latest entry is now posted on my blog in the popular series, Musings After Midnight, titled, "The Stealth War."
My series "Musings After Midnight" is now indexed at my blog, The Liberty Sphere.
You may also wish to visit my ministry site at Martin Christian Ministries.