By Travis Waldron on
May 8, 2013 at 9:42 am
The United States is again
approaching its debt limit, though an improving economy and new revenues have
pushed the deadline for when it will need to be raised as far back as October.
And yet again, Republicans are pushing legislation that amounts to nothing more
than a phony fix to the issue, a bill known as
the Full Faith and Credit Act that will prioritize debt payments in a way that
House Speaker John Boehner (R-OH) says “makes it clear to our bondholders that
we’re going to meet our obligations.”
But such a plan makes it clear
that the U.S. will meet only some of its obligations, leaving
many Americans, including troops, veterans, and the elderly, out in the cold.
Boehner doesn’t see that as a problem, he told Bloomberg TV last night:
COOK (Host): Doesn’t it
mean as Democrats have suggested you’re basically choosing to pay China before
U.S. troops?
BOEHNER: Listen. Those who
have loaned us money, like in any other proceeding, if you will — court
proceeding — the boldholders usually get paid first. Same
thing here.
Worse yet, the Republican
plan doesn’t allow the nation to avoid default. If the U.S. services its debt
payments but still misses others, it isstill defaulting on payments it is
required to make. Since the bill only allows Treasury to make payments as it
receives revenues, and the bulk of its payments are made at the beginning of
the month even though revenues don’t come in until later, it would almost
certainly be unable to meet at least some of its obligations.
When the GOP has considered
similar plans before, Treasury officials have called it “unworkable.” Bipartisan analysts said it was
“essentially impossible.” Failing to fulfill spending obligations would be “the first step to becoming a banana republic,” a
Bush-era Treasury official said. Instead of inspiring confidence among
investors, bondholders, and the American people, the legislation would zap it.
Far from preventing
default, the Full Faith and Credit Act would essentially ensure it. That
wouldn’t just put paying China ahead of senior citizens and members of the
military — it would also hammer economic growth both in the United
States and across the world. (HTHuffington Post)
GOP will be defunding all courthouses across the nation because jurors do "above entitled actions."
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