Listen, we do realize that way too many people are setting their hair on fire over the debt ceiling nontroversy, screaming “if we don’t raise the debt ceiling, we’ll default on our debts and the world economy will crash!!!eleventy!!1!”
Sure, if this nation were to suddenly tell all of its creditors that we weren’t going to make our monthly minimum payment now or for the foreseeable future, the consequences would absolutely be dramatic for financial markets at home and abroad. If the world’s greatest debtor decides to become the world’s greatest deadbeat, it IS going to cause pandemonium and mayhem. For everybody. Lending money suddenly becomes a very risky affair for lenders, interest rates (the price for borrowing money) will skyrocket, inflation will go nuts etc. and so on.
It really annoys His Imperial Majesty no end to hear otherwise rational people (Democrat Socialists obviously excluded), however, regurgitate that as a given.
Out of every dollar we spend, we “only” borrow 40 cents, give or take. That’s too much by far, to be sure, but that’s the price we pay for not doing the sensible thing and shooting socialists in the back of the head the moment they start masturbating to Karl Marx and former Enron advisor Paul Krugman. The fact IS that we still have 60 cents of real money collected through revenues.
Which is MORE than enough to service our debt which, in layman’s terms, means “not defaulting.”
Sure, we’ll have to cut 40% of our budget to keep of from having to borrow MORE, and that won’t be painless, addicted as we’ve become to “free money”, but it’s hardly impossible. As a matter of fact, it’s not impossible in any sense of the word, just as it isn’t “impossible” for a family to cut out cable TV, going out for dinner, replacing the big car with a clunker and so on. But the bottom line is we DO have a choice.
And it would probably be a good idea, just as it would be a good idea for the aforementioned family to quit running up $4,000 a year on the credit card to cover expenses their paychecks can’t cover.
Bottom line is quite simple: If the debt ceiling is NOT raised because the GOP finally finds a nut and IF said sudden inability to borrow more money from the Chinese leads to us not making our debt payments, then it’s because Princess Stompy Foot so ordered. It is NOT because we can’t pay them. The IRS didn’t stop collecting taxes on October 1, that would be a “shutdown” we could REALLY get behind, they’re still raking it in and they’re raking in far more than we need to make the minimum payments to keep our accounts current. FAR more.
But it WOULD mean that “essential” things like Princess Stompy Foot’s $100,000,000 vacations and golf fees would have to be shut down. Oh the horror!
It’s his choice, as arsehole-in-chief. He can choose to service our payments, or he can choose to crash the markets out of spite because his Wagyu beef is more important, in his opinion, than the financial survival of this nation. HIS choice.
On his head be it, and may his head find itself severed from his body if he so chooses.