Sunday, September 19, 2021
HomePatriot DispatchesMoody, Markets convinced Obama won't pay debts out of spite

Moody, Markets convinced Obama won’t pay debts out of spite

Because all know that funds are, and will always be, available to pay interest on bondholder debts

President Obama’s default drop dead date  pronouncements  could precipitate a financial crisis that is unjustified based upon the actual funds available to pay interest on the debt.

The holders of U.S. Treasury bonds care about one thing: Being paid interest owed to them on time. They know that the U.S. Treasury receives approximately $200B in tax receipts each month and they know that debt service interest payments due each month are approximately $29B each month, or less than 15% of total cash on hand.

Further, these creditors know that there exists no “default” date, after which America would automatically and inevitably default on debts owed to them. So why would the Moody’s credit rating agency threaten to lower the supreme AAA credit rating that the United States of America has maintained throughout its history? Why would world financial markets go wobbly as Timothy Geithner’s faux August 2 default date approaches?

Could it be that Moody’s and the holders of T-Bills have lost confidence in the maturity and good judgment of President Barack Obama?

Surely they know that Obama and Geithner are proficient at basic arithmetic, Obama’s still-hidden Ivy League academic record and Geithner’s personal income tax transgressions notwithstanding. Yet, they hear the Chief Executive and his Administration playing a game of chicken with Republicans in Congress over, not just their debt service payments, but even refusals to guarantee payments Social security payments to the nation’s elderly, disabled and orphan survivors.

We know that there are, and always will be, for the foreseeable future, more than enough funds to pay monthly costs for:

  • Interest on the national debt ($29B);
  • Social Security retirement, disability and survivors benefits ($49B);
  • Medicare and Medicaid ($50B);
  • Military personnel ($3B); and
  • Veterans Administration obligations ($3B), with tens of billions ($37) to spare for federal law enforcement, border patrol and what remaining government functions the Obama Administration deems essential, even if the debt ceiling is not raised.

Yet, this is the same administration that threatened not to pay the armed forces in the case of a government shutdown last Spring unless funds were restored to Planned Parenthood abortion mills.

Yes, everyone on Capitol Hill, at 1600 Pennsylvania Avenue and in foreign banks knows that there are no dates on, before or after August 2, 2011 when America will not have the money to pay its bills.

But they also are beginning to suspect that the man responsible for actually writing the checks is willing to precipitate financial disaster on his own country merely for his own political purposes.

There are consequences to putting community organizers in charge of the nukes and our money. We the People are reaping the whirlwind of an ObamaDemRecession aftermath, already devastating for the unemployed, underemployed and small businesses whose customers have no money with which to buy their goods and services.

It can get worse and it appears that if Obama doesn’t get his way, he is willing to make it so. In fact, whether we had this debt ceiling issue or not, the fact of the huge debt we already owe could cause markets to dump American dollars any day. The laws of Nature have not been suspended.

But when you add to Nature’s laws an unnaturally irresponsible actor in the role of the most powerful man on Earth, prepare for the deluge.

I just hope that Congressional Republican leaders will begin to educate their constituents, especially including seniors, from whom the threat to their welfare and security comes: Barack Hussein Obama

Mike DeVine

Legal Editor – The Minority Report

Atlanta Law & Politics columnist for Examiner.com

“One man with courage makes a majority.” – Andrew Jackson

More DeVine Gamecock rooster crowings at Modern ConservativeHillbilly PoliticsUnified Patriots,  Political Daily and Conservative Outlooks. All Charlotte Observer and Atlanta Journal-Constitution op-eds archived at Townhall.com.

Mike gamecock DeVine
A trial lawyer for two decades in South Carolina; owner of Ati Vista LLC since 2002 now associated with Lupa Law Firm; VP & Counsel for Buddy Allen Roofing & Construction Inc. since 2016 in Atlanta, Georgia; and a freelance writer, DeVine was the conservative voice of the Charlotte Observer from 2006-8 and has been the owner of HillbillyPolitics.com since 2009. www.devinelawvista.com

16 COMMENTS

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16 COMMENTS

  1. Worthy Rooster Crowings, GC. One recalls the admonition, “may you live in interesting times.” Never did I think we would be subjugated under such a pernicious ruler, or as CW dubbed him, skinny little freak.

  2. Agree completely, GC. Obama just gave the R’s a gold mine in ad material. I have heard rationalizations on all sides for McConnell’s ‘plan’. But if he really believes that nothing serious can get done until O is gone, and he loves his country, then the way maybe ought to be smoothed for Obama to remove himself from office, sooner rather than later, by goading him into doing something stupid, really stupid, in the next 30-60 days.

  3. Excellent analysis and reminder that Obama owns any action with respect to default on the debt. 2011 is NOT 1995. History clearly indicates that the President, not the Congress, is blamed for a bad economy or a bad war. Nobody remembers who the congress critters were in 1929 or 2008.

  4. Nice, GC! If Obama defaults, it will be for the purpose of retribution, and this admin has already proven that they are capable of doing just that for the sake of their ideology.
    Keep the facts flowing out there, GC. The more people are able to see the numbers, the more they will understand that if he does default, it is by his own choice and no one else’s but his own!

  1. Worthy Rooster Crowings, GC. One recalls the admonition, “may you live in interesting times.” Never did I think we would be subjugated under such a pernicious ruler, or as CW dubbed him, skinny little freak.

  2. Agree completely, GC. Obama just gave the R’s a gold mine in ad material. I have heard rationalizations on all sides for McConnell’s ‘plan’. But if he really believes that nothing serious can get done until O is gone, and he loves his country, then the way maybe ought to be smoothed for Obama to remove himself from office, sooner rather than later, by goading him into doing something stupid, really stupid, in the next 30-60 days.

  3. Excellent analysis and reminder that Obama owns any action with respect to default on the debt. 2011 is NOT 1995. History clearly indicates that the President, not the Congress, is blamed for a bad economy or a bad war. Nobody remembers who the congress critters were in 1929 or 2008.

  4. Nice, GC! If Obama defaults, it will be for the purpose of retribution, and this admin has already proven that they are capable of doing just that for the sake of their ideology.
    Keep the facts flowing out there, GC. The more people are able to see the numbers, the more they will understand that if he does default, it is by his own choice and no one else’s but his own!

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