Skip to content

Debt ceiling was hit in May, so why’d polititicans wait until October?

October 9, 2013

The  United States hit its debt limit in May 2013, according to U.S. Treasury Secretary Jack Lew  (see footnote 1 below and 2:42 at http://www.nbcnews.com/id/3032608/vp/53200915#53200915 ).

What motivated our politicians to wait until October to negotiate a debt ceiling that they should’ve raised in May?

Perhaps it was Charlie Sheen‘s bizarre version of Winning!

Winning! for the Republicans meant that, by negotiating the budget and debt ceiling in the midst of the Obamacare rollout, Republicans could recreate the chaos of the 2011 negotiations, which resulted in Defense spending cuts and tax hikes that were successfully blamed on Democrats.

Winning! for the Democrats was supposed to be the same Blame Game, except with Republicans playing the villains.

But, I believe, President Obama and Senator Harry Reid (R-NV) reneged on the deal.

They realized that Winning! could include far more than simply blaming Republicans for a budget or debt-ceiling deal that their base would hate.

Winning! could be the annihilation of the Tea Party and the castration of the Republican Party.

President Obama and Senator Reid refused to negotiate on anything.  They knew that hiking the debt ceiling to ~$18 trillion without even one itsy bitsy spending cut or entitlement reform would be untenable for conservatives who loathed and feared the $12 trillion in debt and unaffordable entitlement programs already added by Presidents Obama and George W. Bush.

Then President Obama and Senator Reid upped the Blame Game drama–default, default, default; it’s the Republicans fault!–as they dreamed of the dozens of GOP butts being booted from House and Senate seats in 2014.

Regaining control of both congressional houses would enable President Obama and Senator Reid to finish their transformation of America into a totalitarian nightmare in which every aspect of our lives would be monitored, regulated, controlled, and taxed and even fined, sued, bankrupted, and silenced or imprisoned if our beliefs and words differed from theirs.

Winning!

Winning?

Did President Obama and Senator Reid even consider that the price tag of their Winning! might include the destruction of our government, our dollar, our economy, our livelihoods, our children’s futures, and even our beloved America?

President Obama and Senator Harry Reid’s game of Winning! has put our reserve currency status at risk (see footnote 2), because they have scared the bejesus out of our allies and have emboldened our enemies by labeling Republicans as economic terrorists who want the United States to screw the world by not paying our debts.

The world has already begun to react to Obama and Reid’s reckless threats of default:  The Chinese are criticizing their government for holding so much U.S. debt ($1.3 trillion), and the Hong Kong exchange has devalued U.S. Treasuries that are used as collateral, and the Japanese sold their U.S. Treasuries at record levels last week, according to CNBC business reporter Eunice Yoon on Squawk Box on October 10, 2013 ( http://video.cnbc.com/gallery/?play=1&video=3000206400 ).

Even some American investors no longer trust holding U.S. debt.  For example, Fidelity portfolio managers recently sold all of their short-term U.S. debt( http://www.usatoday.com/story/money/markets/2013/10/09/fidelity-no-longer-holding-government-debt-due-in-month/2954601/ ).

Whether we destroy our dollar or default on our debt seems unimportant to President Obama and Senator Reid, based on their actions (footnote 3).

Their version of Winning! will never include working with any Republicans who are willing to address our fiscal mess and implement solutions that likely will discomfort and anger all of us yet save our beloved America.

Winning!

If President Obama and Senator Reid win, America and her children will be the biggest losers for several generations, if not forever.

______________

Footnote 1:  The United States already hit the debt ceiling in May 2013, according to U.S. Treasury Secretary Jack Lew on Meet the Press, October 6, 2013 (see location: 2 min 42 sec  at http://www.nbcnews.com/id/3032608/vp/53200915#53200915 ):

“We actually hit the debt limit in May. From May until this week, we’ve been using what are called ‘extraordinary measures’ to create a bit of additional headroom. On Tuesday (October 1, 2013), I informed Congress, I’d used the final extraordinary measures.  There are no more. So we’re now limited to the borrowing capacity that we have today.

“On October 17th, we will exhaust our borrowing capacity.  And at that point, I have nothing else in the drawer.”

Footnote 2:  President Obama calls the U.S. dollar “the world’s reserve currency,” when in reality the dollar lost that status during his presidency.  The U.S. dollar is only “a reserve currency” because countries now use a “basket” of currencies for trade and have currency-swap agreements that enable them to limit their exposure to the U.S. dollar and debt.

If America has another financial crisis, it will cost far more than another economic depression, millions of lost jobs, millions of Americans losing their retirement and medical benefits, millions of Americans losing their homes.

A financial crisis will collapse the U.S. dollar and result in its losing even its “a reserve currency” status.

Countries will dump U.S. dollars and debt, leaving us awash in a tsunami of worthless dollars and a mountain of debt that no one will buy.  The result will be a credit freeze or sky-high interest rates, runaway inflation, the U.S. dollar not being worth the paper it’s printed on, our having to give hard assets and concessions to our creditors, etc.

Sadly, none of us knows exactly what might happen, because we don’t know how many of America’s critical assets are owned by non-allies.  During the Bush and Obama presidencies, even non-ally countries have been allowed to buy into our energy, metal, and mineral assets as well as our food industry and farmland.  Even many of our green-energy companies are now foreign-owned.

Footnote 3:  I fear that salvaging history’s version of Obama’s presidency has become more important than salvaging our dollar and our fiscal future.

Winning! for President Obama means that history must tell of a dying Republican Party that prevented a brilliant man from becoming a brilliant President.

Winning! for President Obama means that history must blame Republicans for everything he did wrong.

History must not write that Obamacare failed because our bankrupt nation couldn’t afford another entitlement program, and our working poor and middle class couldn’t afford Obamacare’s high premiums and high deductibles that ate up the money we otherwise would have spent on our own healthcare.

History must not write that Obamacare has created economic uncertainty and weakened an already-fragile economy and is transforming us into a part-time-work nation.

History must not reveal that Obamacare failed because Democrats gave no one enough time to read the legislation before the they rushed to pass it without even one Republican vote in December 2010.

History must not reveal that, before the government shutdown, the Republican-controlled House had sent four different budget amendments to Senator Reid, with the first asking for the repeal of Obamacare and then subsequent versions asking for less and less until the last version asked only that Congress experience Obamacare along with the rest of us and that Americans not be charged a fee if they were unable to sign up for Obamacare in the first year.

History must not reveal that, after the government shutdown, the Republicans only asked for a conversation with President Obama and Senator Reid about the budget and debt ceiling.

History also must not reveal that our leaders always knew that our debt-heavy, bloated government and its pyramid-scheme entitlement programs were unsustainable.

And history must not remember the Republicans who were willing to address our fiscal nightmare and implement solutions that likely will discomfort and anger all of us yet save our beloved America and our children’s and grandchildren’s futures.

Leave a Comment

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: