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The Ralph Rant
The misinformation campaign remains in full gear to remove the most powerful tool that fiscally responsible conservatives have to force the federal government to make major spending cuts.
The argument perpetuated in the media goes like this. House Republicans can't use the debt ceiling as leverage to force spending cuts because carrying through on their threat to NOT raise the ceiling would force default on the debt and an economic catastrophe.
In the latest AP article about using the debt ceiling as leverage, the reporter states, as if it were a fact: “Without the increase to the debt limit, the government would be in a position to default on its financial obligations, stop paying for some programs and send the global economy into a free fall.”
That is a patently false statement.
Even more disappointing than the media ignorance, some Republican presidential wannabes play right into the lie. Mississippi Gov. Haley Barbour said "To me, the debt ceiling is a tool. "This is a tool to get spending cuts and to make the left and anyone else understand the debt ceiling is going to go up when we have a plan that puts us on a path that starts making the cuts."
That's an okay position – if a bit clumsy. But Barbour pretty much admits he's bluffing. He said he supports raising the debt ceiling, telling Fox News "America would suffer enormous consequences. The dollar is the currency of the world; it won't be if we default."
The fact is it takes only 10 percent of annual revenues to service the debt and avoid default. It would force the government to limit other spending to the remaining 90 percent, at least for a while – but it would absolutely not mean default on the debt. Nor would it weaken the dollar. It is borrowing too much – not too little – that weakens both the dollar and the credit rating of the United States.
Whenever you see the lie in print that failing to raise the debt ceiling will cause default on the debt, you should demand (politely) a retraction and/or correction. Don't let this lie destroy the only weapon conservatives have to force spending cuts.
The enormous consequences that American will suffer from the mammoth debt we are amassing are far more catastrophic than the consequences of curtailing government services to that which we can afford with 90 percent of current revenue. Even if members of Congress believe they have to choose between the lesser of two evils – the choice should not be that tough for true conservative members.
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