“Negotiations”

President Barack Obama often publicly chants his mantra of “[I] will not negotiate over the terms of debt limit legislation…[I am] willing to discuss a range of issues once the government is reopened and the Treasury able to borrow freely again.”

Given Obama’s credibility, though, on what basis can he be trusted to negotiate in good faith when there’s no pressure on him?  More, recall that in the last debt ceiling fiasco just a couple of years ago, Obama personally (and cynically, say I) blew up one deal very near to completion with a deliberately late demand for $1 trillion in higher taxes.

Here are further examples of Obama’s willingness to negotiate:

In a 2011 address to Congress:

[Republicans’] vision is less about reducing the deficit than it is about changing the basic social compact in America [and] children with autism or Down’s syndrome [should] fend for themselves.

At a Rockville, MD rally a few days ago:

single-greatest threat to our economy…the unwillingness of Republicans in Congress to stop refighting a settled election.

And

John Boehner…doesn’t want to anger the extremists in his party.  That’s all.  That’s what this whole thing is about.

And

Republican obsession [with] denying affordable health insurance to millions of Americans.  That’s all this has become about.  That seems to be the only thing that unites the Republican Party these days.

In a recent NPR interview covering, among other things, the then-imminent government shutdown:

Interviewer: What can you offer [to Republicans]?

Obama: [W]hen you say, ‘What can I offer?’—I shouldn’t have to offer anything.

Yeah, those are sound negotiating ploys, all right.

Finally, and not too unrelated, as Congressman Louie Gohmert (R, TX) says,

The [Obama] hissy fit is going to have to end[.]

Debt Default Redux

Senate Majority Leader Harry Reid (D, NV) continuing his meme of refusing to negotiate, says

We not only have a shutdown, but we have the full faith and credit of our nation before us in a week or ten days[.]

Never mind that this could have been settled much earlier in the year, but for Democrats’ and President Barack Obama’s intransigence:

Reid and other Democrats blocked numerous attempts…to approve House-passed bills reopening portions of the government.

And there’s that whole “Presidential” series of “veto threats against GOP spending bills” thing.  The “GOP” part is the kicker.

In the end, it’s clear that, having gotten the government shutdown for which the Democrats have fought so hard, they’re now bent on default.

Again, I ask, why?  I also ask against this backdrop: from Section 8 of our Constitution we have

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States….

Paying the national debt isn’t just one of only three purposes for which the Federal government is permitted to “lay and collect Taxes;” it’s the first purpose.

And from the 14th Amendment we have

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.

The Federal government collects in tax revenue roughly 10 times the amount of money required to make the payments on the national debt as they come due.  Suggesting that that’s in danger, that debt default is a risk, is dishonest.

Debt Default

One of President Barack Obama’s reasons for refusing to negotiate his demand to raise the debt ceiling centers on his premise that the debt ceiling is about existing debt obligations, not future ones.  He’s right, in a limited way.  What he chooses to elide in that, though, is that existing debt exists because of past spending exceeding past revenues: see, for instance, his Stimulus Bill in 2009; his trillion-dollar deficit budget offerings in each year of his administration; the Democrat-run Senate’s refusal even to consider a budget until this year, with that budget offer containing billions of dollars in deficit; and the government’s continued spending in excess of revenue, even in the absence of a budget.

Of course spending reductions need to be part of the present debt ceiling raise negotiations—that’s the only way to reduce/eliminate future borrowing (and on the side, to reduce/eliminate the need for future debt ceiling raises).

There’re plenty of Federal revenues coming in with which to pay the Federal government’s borrowings and to keep those debts current.  That was the case in 2011, when the Obama administration and Senate Democrats tried to mislead us about debt “default,” and it’s the case today, even though we’re two years further into Obama’s failed recovery.

The Democrats in this government threatening default if the Republicans and Conservatives don’t agree to lift it without spending limits are

a)    deliberately dishonest in their misleading claims about “default”
b)    breathtakingly ignorant about meaning of defaulting on borrowings
c)     holding our economy—and us Americans who exist within it—hostage against their getting their own way

Or all three.

But Obama, his Senate Majority Leader, and the latter’s seconds and deputies all refuse to negotiate.  Again.

The Coming Obama/Reid Debt Default

As part of the effort to fund the government, and this time, by the way to prevent default on our national debt, the House last week passed a CR that included an amendment that guaranteed that interest and principle on our national debt instruments would be paid first out of all the revenues coming in to the Federal government—an amount that exceeds the value of those payments by a factor of around 10.

When the CR got to the Senate,

[Senate Majority Leader Harry, D, NV] Reid moved to strip it out, and his motion passed the Senate 54 to 44 [a straight party line vote].

Last May, the House had passed that amendment as a stand-alone bill, but President Barack Obama said he’d veto the bill if it got to his desk:

unwise, unworkable, and unacceptably risky.

You read that correctly.  Obama said it was unwise, unworkable, and unacceptably risky actually to pay our debts ahead of any other obligations the Federal government might dream up.

Reid’s reason for stripping that amendment from last week’s bill?  It’s clear from his derisive title for it: “The Pay China First Act.”  I’ll elide the open racism in Reid’s title; he also simply sees no the value in paying our debts ahead of any other obligations.

This line is drawn clearly, also, it seems.  Not only have the Democrats in the Senate and the White House fought hard for a government shutdown—which they got with their refusal to negotiate on any funding bill sent them by the House—now they’ve shown themselves dedicated to holding our economy and our nation’s welfare hostage against their threatened default.

And for what, exactly?

Obama’s Government Shutdown

Treasury Secretary Jacob Lew had this to say in a Tuesday speech to the Economic Club. The President

will not accept measures that would tie a debt-limit increase to defunding or delaying the Affordable Care Act.  There are not and will not be negotiations about the debt limit.

There it is in so many words.  President Barack Obama insists on blowing up our economy and trashing what’s left of our national credit rating because his ego will not let him negotiate—anything—on the debt ceiling.

Obama’s shutdown.  Obama’s trash.  He’s even setting up for his shutdown.