Senate Debt Deal Would Let Obama Put Political Pain on Installment Plan
- Submitted by Darla Dawald, National Director on July 18, 2011 at Patriot Action Alerts
- Senate Throws Obama a Debt Lifeline
Published July 18, 2011
| FoxNews.com
Senate Debt Deal Would Let Obama Put Political Pain on Installment Plan
“I think the McConnell plan is more of Washington not taking responsibility, it is a great political plan, it takes the pressure off all of the politicians, but allows us to pass a debt limit without making the hard choices that this country has to make.”
-- Sen. Tom Coburn, R-Okla. on “Face the Nation”
Power Play feels obliged to remind everyone that the federal government is highly unlikely to default on its debts.
The catastrophic consequences of the U.S. government reneging on existing obligations would be so dire that no serious person would consider it. President Obama may use the threat of default as part of his ongoing negotiation with Republicans over his request to increase the government’s $14.3 trillion borrowing limit, but only a madman would actually follow through on such a course.
The administration now uses the phrase “default or fail to meet its obligations/pay its bills” when talking about the ongoing impasse on the borrowing limit, a nod to the fact that cuts to domestic spending, not failure to pay existing debts, is what would ensue if the Treasury runs out of money.
Of late, the federal government has been borrowing 44 cents of every dollar it spends. If there really were an impasse, it would be up to Obama to decide which 56 percent of federal obligations would be met. Avoiding default would have to be the top priority.
Read more: http://www.foxnews.com/politics/2011/07/18/senate-throws-obama-debt...
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