Reporters, Democrats, and even some Republicans have begun repeating an infectious lie in the prelude to the debt ceiling debate. Secretary of Treasury Tim Geithner started it off and it has been repeated by reporters in print, on radio, and on television, including Fox News.
The lie is very simple: a failure to raise the debt ceiling will cause a default on American debt.
This is utterly and categorically a lie. Anyone who says otherwise is a liar.
As Senator Pat Toomey noted the other day,
Next year, about 7 percent of all projected federal government expenditures will go to interest on our debt. Tax revenue is projected to cover at least 70 percent of all government expenditures. So, under any circumstances, there will be plenty of money to pay our creditors.
Moreover, as the Congressional Research Service has noted, the Treasury secretary himself has the discretion to decide which bills to pay first in the event that a cash flow shortage occurs.
Nonetheless, the media and Democrats keep repeating the lie. And it is a lie.
Veronique de Rugy and Jason Fichtner chronicled debt ceiling fights in the Washington Times and, from their writing, we can categorically show it to be a lie to claim a failure to raise the debt ceiling will cause a default on American debt obligations.
In 1985, Congress waited nearly three months after the debt limit was reached before authorizing a permanent increase. In 1995, 4 1/2 months passed between hitting the ceiling and congressional action. And in 2002, Congress delayed raising the debt ceiling for three months. In each case, the U.S. and the economy survived.
Not only did the economy survive, but the United States did not default on its debt obligations, the United States did not lose its credit rating, and interest rates did not go up as a result of the default.
To say that failing to raise the debt ceiling will cause a default is a lie and anyone who says it is a liar.
If we fail to raise the debt ceiling and do default, it will not because because of a failure to raise the debt ceiling. It will be because Barack Obama and Tim Geithner chose to default for political gain.
Again, as Senator Toomey points out
[A]s the Congressional Research Service has noted, the Treasury secretary himself has the discretion to decide which bills to pay first in the event that a cash flow shortage occurs. Thus, it is he who would have to consciously, and needlessly, choose to default on our debt if the debt ceiling is not promptly raised upon reaching it. It takes a lot of chutzpah to preemptively blame congressional Republicans for a default only he could cause.
Jeff Emanuel
Neil Stevens
A liar!!!!!!!!!!!
djvu (Diary) Monday, April 25th at 5:22AM EDT (link)Since Mr. Geithner lied about his own taxes, why should we be surprised that he would lie about about the government’s obligations?
Robert Palmer Smith
"Anyone who tells a lie is a liar."
djvu (Diary) Monday, April 25th at 5:40AM EDT (link)Inasmuch as Mr. Erickson has quite corretly defined the word ‘liar’, why do not some of our people in congress stand up on the floor and call Mr. Geithner a liar? There is nothing uncivil about the word ‘liar’. It is a common word in our language (oops sorry – in the English language). If the Republicans wish to have ‘proper’ coverage in the liberal press, calling Mr. Geithner a liar on the floor of congress would undoubtedly get them that coverage.
Robert Palmer Smith
I agree, but...
wpeterkin Monday, April 25th at 7:49AM EDT (link)The term “liar”, no matter how accurate, is seen by those in public office as a major slur (it is!) and, since almost all are guilty of this same sin, don’t like to plaster the term on the other guy lest it be plastered on themselves. I’ve been calling them all liars for a long time. The term fits.
Too True
edintexas Monday, April 25th at 12:36PM EDT (link)Would anyone notice if politicians called someone a liar? The people don’t believe their promises, they have been fooled far too often.
Aww, let's call it a
bus2dc Monday, April 25th at 5:27AM EDT (link)Even my super-liberal Democrat mate agrees this is a hideous & intentional lie. And yes, Fox is perpetuating the myth (it wouldn’t be the first time, right?). The only way to stop it would be for something entirely CRAZY to happen — like, say John or Mitch comes on and tells the truth. Haha. Oh well.
Tell us something new,
popster Monday, April 25th at 5:55AM EDT (link)these people, red or blue, have been lying to their constituency for time immemorial. Why should we beleive them now? they are lawyers, it’s what they do best.
Say It Ain't So!
rattlerjake Monday, April 25th at 7:39AM EDT (link)This government is no different than women with credit cards. As long as they can charge it they don’t think about how to pay for it; as long as they get to buy what they want instead of what we NEED. Any financial manager with half a brain (which is twice as much as any politician) will tell you to “CUT UP THE CREDIT CARDS!”, reorganize and concentrate on paying off your debt. But this is what happens when politicians have unlimited control over taxpayer dollars.
I agree...mostly
jbben Monday, April 25th at 10:09AM EDT (link)The government should have a sound financial manager, just like responsible individuals and small businesses have. From what I’m understanding, Standard & Poors is lowering our credit standing as a nation BECAUSE THE DEFICIT IS NOT BEING ADDRESSED and it doesn’t seem that it’s being taken seriously enough.
I don’t understand how some senators and reps can say ‘I could support raising the debt ceiling IF blah blah blah.’ There is nothing that can justify raising the debt ceiling! When you can’t pay your bills it is stupid to ask for a credit limit increase!
I could have happily done without your stereotype about women and credit cards. ;o)
Your reference to women and credit cards
wesok101 Monday, April 25th at 10:22AM EDT (link)is very offensive to me (and I am an 81 year old male). My wife is more frugal than I am. Our son-inlaws were both spendthrifts. Your message concerning the use and abuse of credit cards is good but the way you have used it to demean women is outrageous.
Agreed, wesok
mspector (Diary) Monday, April 25th at 10:36AM EDT (link)Responsibility, frugality and discipline know no sexual lines. And in general we need to cease the gratuitous jibes if we want to speak to people other than ourselves — something that would serve us well in the upcoming elections.
“Government, even in its best state, is but a necessary evil; in its worst state, an intolerable one.” (Thomas Paine)
“A friend of mine was asked to a costume ball a short time ago. He slapped some egg on his face and went as a liberal economist.” (Ronald Reagan)
Finally, Some Confirmation
wpeterkin Monday, April 25th at 7:44AM EDT (link)I have tried to make this argument for several weeks; that there would be no reason to default on any debt payments. With the debt limit not permitting more borrowing, it follows that spending MUST be cut. However, one thing still bothers me. If the Treasury Secretary determines what bills get paid, can he (Geithner) decide to not make debt payments in order to continue the spending on the administrations pet projects? I worry about partisan politicians in a snit because their credit card was cut up causing an intentional catastrophe
Not if Congress passes H. R. 421
Diogenes314 (Diary) Monday, April 25th at 8:39AM EDT (link)The House version of Toomey’s Full Faith and Credit Act which would require the repayment of debts prior to any other spending.
The only downside.....
dwscho Monday, April 25th at 8:16AM EDT (link)to not rasing the debt ceiling is Congress would be forced to cut spending and begin to operate within its means. They would perceive this as a bad thing but, it would be good for the rest of us. If Congress raises the debt ceiling, they will simply postpone the day of reckoning until some future date. They will spend up to the new debt limit and will once again lie to us by claiming they need to increase the debt ceiling yet another time. The beltway crowd can’t stop their spending spree. The only way to curtail it is if we put pressure on them by taking away their credit card.
Timmy boy and the rest...
mudhead Monday, April 25th at 8:29AM EDT (link)You lie!
(sound kinda familiar? It’s a statement of fact, not some slur, you juveniles in congress. )
The Formula.
msctex (Diary) Monday, April 25th at 9:31AM EDT (link)) The “You Lie” moment redux.
2) But followed up immediately by a calm and well-reasoned explanation of said lie, why it is a lie, and what Reality actually entails.
3) A nice sound bite catchphrase line like, “Congressmen, the American people are cutting up your credit card. You may have it back when some rules are in place which will keep this from happening again.” Place the People in the role of parents over irresponsible children.
Problem solved.
Did we
gunslingr45 Monday, April 25th at 9:42AM EDT (link)elect a bunch of weeines?
Plain speech - good.
malnatik9 Monday, April 25th at 10:16AM EDT (link)Thank you. LOVE that you chose to use the word “LIE”. Thank you for speaking plainly. I’m quite sick of all the euphemisms surrounding this one TRUTH. Congress LIES. The President LIES. The Cabinet members LIE. And above all Geitner LIES!
Geeze, I’m not sure he even knows how often he Lies, or if he’s even capable of telling the truth at all.
Thank you at least for stating it clearly. No more “mendacity”! Lets call a Liar, a Liar. Tim Geitner is a Liar! Obama is a LIAR. Start there, and the rest becomes clear enough.
Just tell the truth
mspector (Diary) Monday, April 25th at 10:19AM EDT (link)Refusing to raise the debt ceiling does not affect our ability to pay existing debt. It merely says we are not to incur new debt. And ironically enough, by not incurring new debt we put ourselves in a better position to pay existing debt. It ain’t rocket surgery.
That’s the truth of the matter. And to anyone who says different, there is a simple and truthful reply: you are either lying or woefully misinformed. Period. This is a time to speak the truth bluntly. I believe the American people will hear and respond favorably.
“Government, even in its best state, is but a necessary evil; in its worst state, an intolerable one.” (Thomas Paine)
“A friend of mine was asked to a costume ball a short time ago. He slapped some egg on his face and went as a liberal economist.” (Ronald Reagan)
Only half the story
gregorysstewart (Diary) Monday, April 25th at 10:23AM EDT (link)Even if we grant that the country would NOT fail to meet its obligations, what, in fact, would happen if the ceiling was not lifted?
Who would not get paid? What would happen to business confidence? What would happen to consumer confidence? Does that action compel the feds to print even more money, and does the injection of more money mean the further erosion of our currency?
Finally, if we properly assess the damage, would it be better to go into further debt or to bite the bullet and take the rest of the consequences?
The lie is not...
leefox Monday, April 25th at 11:04AM EDT (link)…the only issue here.
Republicans are Again allowing the democrats to control the discourse.
Republicans are Again allowing the democrats to put them on the defensive.
Republicans are Again failing to take the truth to the American people and make the democrats defend their positions.
The time for statesmanship is over. The democrats will do anything an everything to maintain and grow their power.
If Republicans are unwilling to be our warriors in the political arena we have misplaced our votes.
Republicans must Stand Up and Fight for America.
Lair Lair
hellfire Monday, April 25th at 12:01PM EDT (link)Is it true that your pants actually catch fire,,Just wondering Mr Geithner
Band the media by writing about this online and in OpEd's
Juggernaut (Diary) Monday, April 25th at 7:11PM EDT (link)The media are so corrupt that we need to flood online sites/blogs with articles exposing lies while demanding media neutrality because ABC, NBC, CBS, CNN and so on are not going to play fair till enough people complain and people start calling, emailing and posting comments on their blog sites. OpEd’s will help too if we could get them published, publishing is small papers could start the storm and build up the complaints.
Its not just the debt ceiling lie, its a multitude of endless lies while the media discriminate against conservatives and tea party members we become victims so fight back and fight often. Complaints to shareholder services and attending shareholder meetings by buying shares or even one share shall suffice.
People raised hell at GE shareholder meetings in 2008, now they have divested to owning only 49% of NBC Universal because they realized liberals have ruined the company and the revenue cash cow is now suffering from MadCow disease.
RomneyCare is Right Wing Socialism –
Romney “severely conservative”? That’s the opposite of a “compassionate conservative” like George W. Bush? Actually, we know what a severely conservative is. It’s Dick Cheney and Mitt Romney is no Dick Cheney.