We all keep hearing and reading about the possibility of the US defaulting on our debt. This is an impossibility if people follow the law.
As unambiguously stated in our 14th amendment, ….
Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.
This language makes it clear that our federal government has an obligation to pay our debts first.
So, in order for us to default, we would hae to not have the money to pay our interest and our pensions. Currently, our pensions are running us about $100 billion a month. And, currently it costs us about $18-19 billion a month to service our debt. So, we have to make about $120 billion a month to fulfill our obligations as required by our constitution.
February would be the only month we could be in danger of not being able to support our obligations, but, that’s only if the administration violated the constitution and didn’t keep some money back from the previous months to pay them. Over the course of the last 2 1/2 years we’ve averaged close to $210 billion a month. So, even if we didn’t increase the debt limit we’d still have $90 billion a month to support other functions of the government as well as servicing our debts and paying our pensions. Indeed, we could and still have enough to fully fund our national defense spending, which, obviously, can be maintained at lower levels of spending, as we are currently doing. And, all of the welfare spending the US government provides.
And, again, clearly we can fund the military and welfare at lower spending than what were budgeted for.
Default is only possible if our government decides to run contrary to our constitution.
Again, with the expected revenues for this FY, we could could implement spending at 2008 levels and never need to increase the debt ceiling.
I haven’t figured out which ones are being entirely dishonest and which ones don’t actually know this. Clearly there are some out there who think the public is stupid and unable to learn these things. We only have to demonstrate this stuff each and every time the debt ceiling subject becomes an issue.
All of this is pretty simple. If congress does not raise the debt ceiling, and we default, then we simply arrest the offending parties, remove them from authority to act in our behest, and make good on our debts. It’s that easy. We call this the rule of law. We have laws, and We The People should insist the lunatics in office follow the law.