Wednesday, May 24, 2023

(D) Lies About Debt Negotiations

Nicely summarized here.

First lie?  "CUTS in spending."  They're not "cuts."

...the Republicans are seeking a tiny reduction in spending from the CBO 2023 estimate of $6.4 trillion down to slightly below 2022's spending of $6.27 trillion. Even with this slowdown, there is no danger of the 5-year moving average falling below where it was in 2022.  According to the GOP plan, after the proposed miniscule reduction for 2023, it's back to annual increases of one percent. ...

Second lie:  the US has 'never defaulted.'

..The US has absolutely, indisputably defaulted before. This began in the wake of the American Revolution when the US defaulted on domestic loans. After the new constitution was in place in 1790, the federal government renegotiated past debt at less favorable terms for investors. That's a default. 

Then there was the Greenback default of 1862. The original greenbacks were $60 million in demand notes which were redeemable in specie. Less than five months later, in January of 1862, the US Treasury defaulted on these notes by failing to redeem them on demand. 

Perhaps the most egregious case was the Liberty Bond default of 1934. The US was contractually obligated to pay back its debts on these bonds in gold. Franklin Roosevelt decided to default on the whole of the domestically-held debt by refusing to redeem in gold to Americans and devaluing the dollar by 40 percent against foreign exchange. The US refused to make good on its end of these bond contracts. That was also a default. ...

Third lie:  The End of the World If We Don't Spend, Spend, Spend

...We're hearing the same thing now about possible default on the $32-trillion national debt. "Give us new debt ceiling increases with no strings attached" appears to be the constant refrain. Without this carte blanche, we are told, there will be economic catastrophe. 

But it is all the same scare tactics the regime trots out every time it wants a new series of bailouts or immense amount of new spending. Trump hysterically said the same thing when he demanded passage of his $2.2 trillion covid "rescue plan." We're told there is no alternative, and any opposition is "reckless." Rather, we must approve any and all new spending now and deal with the consequences later. But "later" never comes because the strategy is always to just kick the can further down the road. To not do so, the experts insist, will destroy the economy. ...

It's the same bullshit your school system pulls:  "If we don't get more money, all the athletic programs will be cancelled and the children will have to walk to school 5 miles uphill every day in -30 degree weather and the teachers will only work half-days and the buildings will not have heat....."

Thanks, but no thanks.

Remember this:  no Government employee has EVER lost pay with a "shutdown."  NEVER.  Not even the obvious crooks in the FBI, IRS, and CDC/NAIAD--and the even more obvious jackwads in Congress.

Maybe it's time we tried that method:  just cut off Congressional paychecks and benefits for a few months.

That would be fun to watch.  And it will help to cut spending!!

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