Diary

The default bogeyman

So Obama and little Timmy are threatening a default if they don’t get more borrowing authority.  Really?

Payments on the Federal Debt were $164 Billion in 2010. Federal revenue was $2.381 Trillion. 

So what is it they’re talking about defaulting on? Certainly they will have enough tax revenue to cover payments to our creditors.

Unless there’s malfeasance on the part of the Obama regime (which there is, of course), a default is not going to happen. Certainly not a default like Nixon had in 1971 when he stiffed all our creditors the gold we owed them.

So what if we did default, then what? Would tax revenues cease? Would the death panels execute grandma more quickly? Would the moon crash into the earth?  NO.

If we DID stiff our creditors, the only thing that would happen is that the US government would find it much more difficult to borrow money. Would that be so bad? It’s not like we’ve got a FUNDING problem. We’ve got a SPENDING problem. The federal government is about 10 times larger than it should be.

Folks, at this point I am in favor of ALMOST ANYTHING that forces our government to shrink in size.

Any congressman who votes for an increase in the federal debt ceiling should face a primary challenge. Hey hey, Ho ho, bloated government’s got to go!