To serve their political objectives, will politicians and the news media create a phony crisis? Is the possibility that the Federal Government will not pay the interest on the national debt a phony political crisis?
If the Federal Government bumps up against the current debt ceiling before Congress raises the debt ceiling, will the Federal Government stop collecting tax revenues from us?
The 14th Amendment says the following in section 4:
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. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.https://www.archives.gov/founding-docs/amendments-11-27#xiv4
According to the Constitution, the United States is required to pay any debts authorized by Congress. Congress makes our laws. That raises a question. If Congress refuses to raise the debt ceiling, that is, authorize the Treasury Department to BORROW MORE MONEY, what does that have to do with the United States defaulting on its existing debts and pensions obligations like Social Security? The Constitution (which not even Congress can override) requires the Treasury Department to pay off those debts. If Congress has already authorized the debt and the collection of tax revenues, why isn’t the onus is on the Chief Executive, not the Legislative Branch, to pay on our existing debt?
What is the risk if Congress keeps borrowing more and more money in our name? Is it possible that We the People could owe more money than We the People can collect in tax revenues?
A very good article. Thanks for posting it.
You are welcome.
1: Yes, it’s become habitual.
2: In theory they should stop, but they won’t. An alternative idea would be to limit spending to what they actually collect.
3: That’s a good question.
4: It empowers the Financial Cartels because the Government becomes increasingly dependent on their Creditors who hire them than to the taxpayers who vote for them.
Thanks for your thoughts.
I suppose we share similar values, and we both want limited government, but we define the threat differently. So, I am curious. Couple of questions.
2. What does raising the debt limit have to do with collecting taxes? What theory are you referring to?
4. When the government borrows money, inflation is a problem for the lenders. However, our most important lender is the Chinese Communist Party. Arguably, that financial cartel would be happy to see us default on pay the interest on our national debt. Hence, the fact that the Bidens are on the take from adversarial nations raises serious concerns, particularly with Biden encourages spending the way a drug dealer encourages drug addicts. How do you think the relationship with the Financial Cartels works, and which corporations make up these cartels?
2. As I understand the way the IRS works, they’re collecting money all of the time. Payroll withholding is probably the largest but there are also quarterly business taxes, fines, back-taxes and other money coming in on a regular basis. If the Government doesn’t have a budget, my point is that they should allocate spending depending on what cash they have on-hand.
That being said (and relative to Question 3), I don’t really know how the debt clause of the 14th Amendment is supposed to be interpreted. It’s obvious from the wording that it had to do with economic liabilities incurred during the Civil War. On the face of it, it would seem that the Federal Government is excused from liability committed through illegal actions by agencies that the Government had to intervene against. For example, when BLM burned down Minneapolis, it would seem that the 14th Amendment would hold that the rioters were responsible for the damage and not the Government.
4. China holds a lot of Treasury Bonds, but they’ve been downsizing their holdings for awhile. BlackRock mostly paid for the 2008 bailouts and the Scamdemic Emergency Stimulus packages. A default would allow these Financial Cartels to swoop in and take over more actual functions of the Government (and I don’t think they have any intention of sharing with the Chinese). I think that China has suspected for a long time that they’re going to get double-crossed at some point; so they’ve been limiting their investments here, building up their gold reserves, and pressuring their trading partners to use Yuan (or gold) instead of dollars.
I’ve never really believed that our economy is going to ‘crash’ or ‘implode’. What we’re witnessing is more like a Controlled Demolition designed to obliterate the Middle Class and concentrate more wealth and power upwards. That’s why these Oligarchs are all posing as ‘woke’ populists; so at the opportune moment they can ride in on their White Horses and offer themselves as our saviors.
Well, your explanation of your response to question 2 makes sense. I don’t know enough to dispute point 4. but I understand China is not unloading US debt.
https://www.reuters.com/markets/asia/china-slips-away-treasuries-sticks-with-dollar-bonds-2023-02-22/ Given our threat to refuse to pay them, I am a bit surprised by that.
Not sure what to make of Black Rock, but I don’t want those people in charge of my money.
When I read your post, the first thing that came to my mind is why is it that “drama queens” which if we look up the psychology today reasons they cannot find long-term common-sense solutions is according to this following statement:
“Creating a drama is one way of controlling others and is often a form of passive aggression. Instead of being open and honest with people you are involved with, you can draw them into a drama—perhaps by creating a reason to fight with them—in order to make them feel bad about themselves or guilty about the way they have acted towards you.”
Regards and goodwill blogging
The manipulation part is certainly true.
Every year we go through this silly charade where congress pretends to care about fiscal responsibility and the American public pretends to believe them. They will come to some sort of meaningless agreement with the president to avoid a shutdown, pat themselves heavily on their backs and then like Lucy pulling away the football from Charlie Brown, will continue to spend enormous amounts of money on the most ridiculous things, driving us further over the cliff of fiscal insanity.
We elect these people. If we want them to stop them from spending so much money, we can.
Why don’t we stop them? We believe too much of their propaganda. That includes the belief that it is hopeless to try to stop them.
Do we need divine help? Possibly. But with God all things are possible. So, I suppose we need to pray and work for a revival, but the need for a revival involves something more important than just balancing the budget.😉
There are lots of souls that need saving.
With more emphasis after the intentional lockdowns imposed by C19, governments began to print money without ballast for as beyond the eye can see — a binge!
The increase in uncontrolled money printing generates inflation (non-declared), of more than 20% per year; and wages and financial investments do not replace this brutal monetary devaluation.
This entire maneuver has the aim of breaking the international financial system and installing “omnipotent and centralized” cybernetic control, for a few, over people’s earnings and consumption, defined by the publicly declared sadic mantra,
“you will have nothing, and you will be happy.”
So, the keyword that permeates the relationship between owners of international financial capital (mammon) and the global population is CONTROL; which refers to biblical prophecy, and affirms the historical guidance of the LORD Jesus Christ,
“And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.”
Sorry. I just found your comment in the spam bucket.
I doubt we are experiencing the Great Tribulation yet, but we are most certainly seeing an effort by some to seize control of the financial system.
Thank you, Citizen!
Part of the problem though is that through Government subsidies, unequal taxation, favoritism, and outsourcing governmental functions to private contractors, they have created a sizable bloc of ‘we the people’ who have a vested interest in continuing the corruption.
Agreed! I have run into these people occasionally. They belong in jail, but I doubt that they see anything wrong with their conduct.
I don’t think it’s hopeless, but my goodness do our institutions need reforming, with some just needing to be abolished all together. Not sure how this gets done until people stop allowing themselves to be manipulated by the hysterics.
Reagan saw government as the problem, not the solution. Why? That’s because the problems we are experiencing come from too much government. Liberal Democrat think that means Conservatives hate government. That is about as dumb as saying someone hates water because they don’t want to drown.