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The Bottom Line on Defaulting Debt
Wednesday, July 13, 2011 10:34 AM

 

The coffers are full.

There's money in the vault.

The piggy bank doth overflow.

In other words, the money is there.

With all the talk lately about the US defaulting on its debt during the ever going and often confusing debt discussions, it makes one wonder why there is any worries at all.

"I cannot guarantee that those checks go out on August 3rd if we haven't resolved this issue. Because there may simply not be the money in the coffers to do it," Obama told CBS News anchor Scott Pelley in an interview. 

That's what he said. He also said that he doesn't know if veterans will get their checks either.

Does any of this sound familiar? Oh yeah. We heard all of this before when we were talking about passing a budget in the first place!

So we drudged up the same old tired scare tactics again and are whipping them around hoping someone will buy into it again.

But the facts of the matter are: We have enough money to pay our debts.

However, according to the Daily Treasury Statements published by the U.S. Treasury Department, the ongoing flow of federal tax revenue since the Treasury declared that it had hit the debt limit on May 16 has been more than sufficient to cover the combined costs of federal spending on interest payments, Medicare, Medicaid, Social Security, the Veterans Affairs department and federal workers wages and insurance benefits (including wages and insurance benefits for military personnel). 

So there might be some pains felt elsewhere, but stop telling Americans that they aren't going to get their benefits. That's lying, Mister President.

Well, it's lying unless you told Secretary Geithner NOT to pay the debt, and that would just be….well I don't quite know the adjective to describe what it would be…but BAD doesn't even come close.

The American people are quite tired of hearing about this financial crisis…so why don't you and all of the other politicians on the Hill (just to be fair) do YOUR jobs and fix it!

@afrbottomline

thebottomline@afr.net

www.afa.net/thebottomline

http://www.cnsnews.com/news/article/official-treasury-reports-coffers-full-e

 

 

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