The GOP fought the wrong fight. This is how it should have gone. They should have passed the continuing resolution to fund the government immediately and then said, “We will not under any circumstances raise the debt ceiling. This is not a negotiating position — this is about the United States paying its bills and ending the Ponzi scheme.”
You see everyone wringing their hands in horror at the thought of the United States defaulting on debt. If we do that, then it will be the choice of the president. An actual choice not to pay the interest we owe. It won’t be about money, because the money is there. We take in 10 times that payment every single month.
And here’s the irony. We are told that if we don’t raise the debt ceiling then we are going to default. In fact, we ARE going to default BECAUSE we raised the debt ceiling. And what does raising the ceiling mean? It means we owe you money and we’ll pay you what we owe you if you lend us more money to do it.
We are told we have to raise the debt ceiling in order to pay our bills, but the reality is we have to raise the debt ceiling because we DON’T pay our bills! And if we didn’t raise the debt ceiling we’d HAVE to pay our bills.
There are many Republicans who campaigned on a balanced budget and then last night voted to raise the debt ceiling. If they voted for it, then they voted for more debt, more government, and less chance of balancing the budget.
The only way we will deal with our debt problem is to leave the debt ceiling in place. We will be forced to deal with the bills at that point. This continual kicking the can down the road should make those who voted for it ashamed of themselves. But they won’t be because far too many of them are simply interested in their own re-election.
They talk about the “full faith and credit of the United States,” but they are operating a Ponzi scheme. Pure and simple. If they were doing this in the corporate world, they’d go to jail. We are paying back our creditors with their own money. That is classic Bernie Madoff. Maybe we should hire him because if we are going to run a Ponzi scheme, surely we should put an expert in charge?
Those in power should be saying, “We won’t raise the debt ceiling, but we will cut spending; we will do away with entire government departments. If we do those things, then the message we send to our creditors is that we are serious about paying our bills. What we are doing now is telling them on a regular basis that we might default!
If we keep doing what we’re doing, the only remaining question is how do we default — not will we default. Until we stop throwing gas on the fire by raising the debt ceiling, then either our creditors will simply say “no more” or we will say “we can’t pay you.” And if we say “we can’t pay you” frankly there is nothing the likes of China and Japan can do about it — it’s not like we put down Alaska as collateral.
We are here and we need people with backbones in our nation’s capital. Unfortunately there appears to be no one in D.C. who has one.
Simon Conway is the afternoon drive host of News Radio 1040 WHO-AM in Des Moines, Iowa, a 50,000-watt powerhouse where Ronald Reagan started his career. Conway was born in London. He began his professional career as a 16-year-old journalist at the Jerusalem Post in 1976. Read more reports from Simon Conway — Click Here Now.
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