But Sir, I cannot afford to feed my babies... What am I to do?

[Warph]

Not increasing the debt ceiling means the U.S. government will default on its debt.  Poppycock... POPPYCOCK, I SAY!!!!!

Seven Myths About the Looming Debt-Ceiling 'Disaster'

1) Not increasing the debt ceiling means the U.S. government will default on its debt. This is probably the biggest lie that almost all other claims arise from. Default occurs if the government stops paying interest on the money that it owes. Not increasing the debt ceiling only means that the government can't borrow more money and that spending is limited to the revenue the government brings in. And, with interest payments on the debt making up less than a ninth of revenue, there is no reason for any risk of insolvency.

Time after time, congress and the president have failed to agree on a debt ceiling increase and still there has been no default. Examples include: December 1973, March 1979, November 1983, December 1985, August 1987, November 1995, December 1995 to January 1996, and September 2007.

Indeed, this really shouldn't even be a point of debate. The 14th Amendment to the Constitution requires that the debt payments come first before any other spending.

2) Until the debt ceiling is raised, uncertainty over the payment of U.S. debts will create chaos in financial markets. Given that the Constitution mandates U.S. debts be paid before any other spending and that sufficient money will be available to cover our interest payments, the only uncertainty arises from Obama's actions. Will he try not to pay the interest? Even a delay of a day in paying this interest will create a default. Court action could eventually force Obama to follow the Constitution but a default would have already occurred. But there is a simple way to end this uncertainty: have the president declare now that he will indeed follow the Constitution and make those payments.

Failure to increase the debt ceiling clearly doesn't mean default. During one three week period at the end of 1996 and the beginning of 1996, some of the government shutdown when a similar battle over the debt ceiling occurred, but there was no default. President Clinton used the revenues that were coming in to pay the interest on the debt.


3) Obama doesn't know if there is money to send off Social Security checks on August 3. Liar, Liar; pants on Fire!!! The president knows very well how much revenue will be available to send out checks on August 3. Indeed, enough money will be available to not only pay the interest, but to also cover all Social Security, Medicare, Medicaid and children's health insurance, defense, federal law enforcement and immigration, all veterans benefits, Response to natural disasters. Terrifying elderly people who are dependent on their Social Security checks may make good politics, but it is unconscionable. Yet, these scare tactics aren't really very surprising. The Democrats behaved no differently when they ran television ads bizarrely depicting Rep. Paul Ryan (R-Wis.) as pushing an old lady in a wheel chair off a cliff.

4) Mortgage interest rates will rise dramatically if the debt ceiling isn't increased. NOT TRUE! Indeed, the opposite is more likely, for not raising the debt ceiling stops the government borrowing more money. Less borrowing by the government could lower mortgage rates as there would be more lending available for potential homeowners. The interest rate paid by the government might go down for a second reason. Just as banks charge individuals a lower interest rate for those who have less debt compared to their incomes, the same is true for governments.


5) Time is Running Out on Debt Deal, and it must be done immediately. Despite Obama's insistence that a deal be completed by July 15 and Geithner's claim that a deal had to be reached by July 22, as already noted, there have been many times over the last few decades where negotiations have extended past when the debt limit has been reached. The longest delay lasted three weeks. Besides claiming that there will be a default, no explanation has been offered for why the debate is any different this time.

Possibly all these claims of urgency are part of some grand strategy to scare people, but that strategy depends on voters not knowing what is necessary for a default to occur.

6) If government spending is cut, there will be a depression. Obama promised that a "temporary" increase in government spending would "stimulate" the economy, but he is now telling us that we can't cut that "temporary" increase -- that we are stuck with it.

If Obama's program -- including a 28 percent spending hike since 2008 and more than $4 trillion in deficits -- worked so well, why has our unemployment rate risen more than elsewhere? The European Union, Canada, South America, Japan, and Australia have all had smaller increases in unemployment compared to the U.S. after Obama's "stimulus." We have also had these shutdowns before and the numbers don't show any negative impact on unemployment or GDP. Figures for the longest shutdowns during the fourth quarter of 1995 and the first quarter of 1996 are available here.


7) The value of the dollar will plummet. Again, the supposed collapse occurs when we default. But there won't be any default. In addition, less government borrowing means lower future taxes, thus making the U.S. a more attractive place to invest. More foreign investment will actually cause the dollar to rise.

It is time for President Obama and his administration to stop scaring people. Cutting government spending back to its 2007 level won't be the end of the world. After all, during the 2008 presidential campaign, Obama himself repeatedly promised "a net spending cut."
John R. Lott, Jr. is a FoxNews.com contributor. He is an economist and author of the revised edition of "More Guns, Less Crime" (University of Chicago Press, 2010).



Read more: http://www.foxnews.com/opinion/2011/07/15/seven-myths-about-looming-debt-ceiling-disaster/#ixzz1SCDN4GJ6

[jerry wagner]

Not increasing the debt ceiling means the U.S. government will default on its debt.  Poppycock... POPPYCOCK, I SAY!!!!!

Seven Myths About the Looming Debt-Ceiling 'Disaster'

1) Not increasing the debt ceiling means the U.S. government will default on its debt. This is probably the biggest lie that almost all other claims arise from. Default occurs if the government stops paying interest on the money that it owes. Not increasing the debt ceiling only means that the government can't borrow more money and that spending is limited to the revenue the government brings in. And, with interest payments on the debt making up less than a ninth of revenue, there is no reason for any risk of insolvency.

Time after time, congress and the president have failed to agree on a debt ceiling increase and still there has been no default. Examples include: December 1973, March 1979, November 1983, December 1985, August 1987, November 1995, December 1995 to January 1996, and September 2007.

Indeed, this really shouldn't even be a point of debate. The 14th Amendment to the Constitution requires that the debt payments come first before any other spending.

2) Until the debt ceiling is raised, uncertainty over the payment of U.S. debts will create chaos in financial markets. Given that the Constitution mandates U.S. debts be paid before any other spending and that sufficient money will be available to cover our interest payments, the only uncertainty arises from Obama's actions. Will he try not to pay the interest? Even a delay of a day in paying this interest will create a default. Court action could eventually force Obama to follow the Constitution but a default would have already occurred. But there is a simple way to end this uncertainty: have the president declare now that he will indeed follow the Constitution and make those payments.

Failure to increase the debt ceiling clearly doesn't mean default. During one three week period at the end of 1996 and the beginning of 1996, some of the government shutdown when a similar battle over the debt ceiling occurred, but there was no default. President Clinton used the revenues that were coming in to pay the interest on the debt.


3) Obama doesn't know if there is money to send off Social Security checks on August 3. Liar, Liar; pants on Fire!!! The president knows very well how much revenue will be available to send out checks on August 3. Indeed, enough money will be available to not only pay the interest, but to also cover all Social Security, Medicare, Medicaid and children's health insurance, defense, federal law enforcement and immigration, all veterans benefits, Response to natural disasters. Terrifying elderly people who are dependent on their Social Security checks may make good politics, but it is unconscionable. Yet, these scare tactics aren't really very surprising. The Democrats behaved no differently when they ran television ads bizarrely depicting Rep. Paul Ryan (R-Wis.) as pushing an old lady in a wheel chair off a cliff.

4) Mortgage interest rates will rise dramatically if the debt ceiling isn't increased. NOT TRUE! Indeed, the opposite is more likely, for not raising the debt ceiling stops the government borrowing more money. Less borrowing by the government could lower mortgage rates as there would be more lending available for potential homeowners. The interest rate paid by the government might go down for a second reason. Just as banks charge individuals a lower interest rate for those who have less debt compared to their incomes, the same is true for governments.


5) Time is Running Out on Debt Deal, and it must be done immediately. Despite Obama's insistence that a deal be completed by July 15 and Geithner's claim that a deal had to be reached by July 22, as already noted, there have been many times over the last few decades where negotiations have extended past when the debt limit has been reached. The longest delay lasted three weeks. Besides claiming that there will be a default, no explanation has been offered for why the debate is any different this time.

Possibly all these claims of urgency are part of some grand strategy to scare people, but that strategy depends on voters not knowing what is necessary for a default to occur.

6) If government spending is cut, there will be a depression. Obama promised that a "temporary" increase in government spending would "stimulate" the economy, but he is now telling us that we can't cut that "temporary" increase -- that we are stuck with it.

If Obama's program -- including a 28 percent spending hike since 2008 and more than $4 trillion in deficits -- worked so well, why has our unemployment rate risen more than elsewhere? The European Union, Canada, South America, Japan, and Australia have all had smaller increases in unemployment compared to the U.S. after Obama's "stimulus." We have also had these shutdowns before and the numbers don't show any negative impact on unemployment or GDP. Figures for the longest shutdowns during the fourth quarter of 1995 and the first quarter of 1996 are available here.


7) The value of the dollar will plummet. Again, the supposed collapse occurs when we default. But there won't be any default. In addition, less government borrowing means lower future taxes, thus making the U.S. a more attractive place to invest. More foreign investment will actually cause the dollar to rise.

It is time for President Obama and his administration to stop scaring people. Cutting government spending back to its 2007 level won't be the end of the world. After all, during the 2008 presidential campaign, Obama himself repeatedly promised "a net spending cut."
John R. Lott, Jr. is a FoxNews.com contributor. He is an economist and author of the revised edition of "More Guns, Less Crime" (University of Chicago Press, 2010).



Read more: http://www.foxnews.com/opinion/2011/07/15/seven-myths-about-looming-debt-ceiling-disaster/#ixzz1SCDN4GJ6

Actually part of your statement is completely incorrect, a default would occur if legally allocated funds passed by a funding bill were not paid.  S&P has clearly stated that a partial default would occur should the government fail to fund its obligations under the law.

[Warph]

Go back and read number one, jerry... Also, "Time after time, congress and the president have failed to agree on a debt ceiling increase and still there has been no default. Examples include: December 1973, March 1979, November 1983, December 1985, August 1987, November 1995, December 1995 to January 1996, and September 2007.  Obuma accused Congressional leaders of playing politics with the debt ceiling.  Here are Obaua's words on the debt limit in 2006, when he voted against increasing the ceiling:
"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the U.S. Government can't pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies. ... Increasing America's debt weakens us domestically and internationally. Leadership means that 'the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."

In 2007 and in 2008, when the Senate voted to increase the limit by $850 billion and $800 billion respectively, Obuma did not bother to vote.  This flip-floppin' clown is not a President.  He's not a leader.  

The answer from my perspective is no more money for Obuma to squander away.  It is so frustrating the way "default" has been bantered about, there is no, nor will there be, a default unless Obuma chooses to NOT PAY THE INTEREST DUE ON CURRENT LOANS!  If there is negative fallout from the default then I would say that our president and the congress have failed in their oaths of office to protect the U.S.  The president is not allowing for the democratic process to proceed without his impeding the process.  It isn't just about getting one's way it is about doing what's right for America as a whole not for select individuals or groups.

To get re-elected, Obuma will need to turn out the groups that backed him overwhelmingly last time.  Ruy Texeira, a liberal but solid student of American politics,  argues that the weak economy will make that less likely.  Even if Obuma gets some short term benefit from the debt ceiling debate, the slow GDP growth, and high unemployment may very well be his demise.  Obuma is not a serious President, his, almost 3 year term, has been a mix of ideology and politics, not problem solving.

[Patriot]

...If there is negative fallout from the default then I would say that our president and the congress have failed in their oaths of office to protect the U.S.
...

Yet again!