Debt default seems academic at this point what with the announcement out of Washington Sunday night that a tentative deal had been brokered on the debt ceiling. However, the operative word there is “tentative.”
With reservations, Senate Majority Leader Reid likes it, which could and should be the kiss of death in the House. Speaker Boehner is ambivalent but believes it’s in line with GOP principles although, as a RINO, his view of those principles don’t jibe with conservative principles. House Democrat Minority Leader Pelosi isn’t sure what she thinks and will probably wait until the deal is consummated before reading it. Senate Minority Leader Mitch McConnell greased the skids for the agreement but can easily wash off the grease if it goes badly.
In sum, the vaunted deal will not become a done deal until the overweight lady sings her approbation and shouldn’t be approved since the so-called compromise accomplishes nothing substantive aside from authorizing the president to tack on a few more trillion to the federal debt.
Balanced budget? They’ll work on it. Cuts in spending? Piddling, but they’ll work on that too and appoint another toothless commission to study them. Re-structuring Medicare, Medicaid, Social Security, the most crushing crises facing America? Not even on the table.
Barring a temporary debt ceiling hike postponing the inevitable, what if America defaults Monday night at 11:59:59 p.m.?
That scenario is now unlikely since the party in favor of fiscal sanity has once again compromised and the party favoring taxing and spending the United States into financial oblivion seems about to get its way, once again, but, just for the jollies, what if we do default?
Who would be held responsible? What would be the effects of a default? Who would emerge the winner and who the goat?
Various polls indicate Republicans and the Tea Party would be held responsible, others the Democrats, others Obama, others McConnell, Reid, and Boehner. If we search long and hard enough, we could probably find polls that conclusively demonstrate that a majority of people would firmly blame sunspots or the price of Dragon Well tea in China.
Point is, the responsibility for default won’t be determined by polls.
Alleged experts in Obama’s liberal mainstream media such as Frank Rich, David Corn, and Ariana Huffington would make that call and, as per habit, point accusatory fingers at the aforementioned party of fiscal sanity and anyone associated with the Republicans, especially George W. Bush, the administration’s always reliable whipping boy.
Little if any reference would be made to the tax and spend party, to this president’s mindless, reckless mania for unlimited debt, or to Democrat history of fiscal irresponsibility. The approach would be similar to that of Bart Simpson’s famous catchphrase, We didn’t do it! and it would have equivalent validity.
As for the effects of a financial default and the most dire consequence, the loss of America’s AAA credit rating, that’s another moot issue. As Bart would say, “It ain’t gonna happen!” and it won’t, primarily since there is no need for it to happen and since Barack Hussein Obama would then go down as the only president in the history of the Republic to allow it to happen.
A default primer: “Default occurs when a debtor is unable to meet the legal obligation of debt repayment. Borrowers may default when they are unable to make the required payment or are unwilling to honor the debt.” (Investopedia.com)
This nation is fully capable of paying, at the minimum, the interest on our owesies, an action that would forestall The Big D at least until Washington politicians regain a semblance of reason and cut back on America’s wildly intemperate profligacy. Likewise and despite Obama’s fearmongering to the contrary, although cutbacks would be required in a number of areas, bills for Social Security, the military, and essential services could easily be handled out of current federal income.
As for our willingness to honor our indebtedness, that’s entirely up to Obama and his Treasury Department who have the unenviable decision of whether to re-classify the United States of America as a banana republic or to pay our just debts.
All the chatter about a money meltdown, a calamitous catastrophe, a disastrous debacle, etc. is nicely alliterated but has little substance or purpose, aside from selling newspapers and getting Americans to tune in to the media Cassandras.
Finally, who would come out smelling like a rose or not smelling too badly from the manufactured default mess and who would emerge as the smelly goat?
Should Obama’s MSM get its way, Obama would be characterized as usual, the Obamassiah who slew the evil GOP dragons to save the country and preserve our national financial integrity.
Should reality hold sway, no one would look good but, based on what appears to be going down and dirty in D.C., the president will get what he most wanted, not fiscal stability, not an end to the crisis, least of all, not a new, sane approach to managing the nation’s economy.
Obama will get his heart’s most ardent desire, postponing Armageddon until after the next election and not be burdened with the onerous task of explaining his failed policies while he is campaigning for four more years to replicate them.
The goat, the loser in all this? Why, as always, the American people.
Let’s clear the air and default now. Let’s end the phony political posturing and empty threats. Let’s separate the alarmist threats from the truth and let the chips fall where they may. If the truth truly sets us free, America just might end up better off.