WASHINGTON — First there was the claim that global warming was a hoax. Then came the assertion that President Obama’s Hawaiian birth was a fiction. And now we are hearing that the prospect of a U.S. government default is, likewise, a fantasy.
Treasury Secretary Tim Geithner says that it’s the real deal: that if Congress doesn’t agree to increase the debt limit by Aug. 2, the United States will be forced to default on its debt, potentially spreading panic and collapse across the globe.
But what do you expect of a government that faked the moon landing, falsified Osama bin Laden’s death and put fluoride in the drinking water to control your mind?
Insidious though fluoride may be, the default hoax is potentially worse. If the two sides in Washington can’t agree on basic facts, how can they possibly reach agreement to resolve the nation’s crushing debt?
The leading purveyor of this new school of economic thought, dubbed the “default deniers” by their opponents, is freshman Sen. Pat Toomey, R-Pa., who presented his case before the American Enterprise Institute on Wednesday. His theory: The government won’t really go in to default on Aug. 2, and, even if it did, things wouldn’t necessarily be so bad.
“The bottom line is there is no danger of a shortage of cash to pay the interest on our debt and to avoid a default,” Toomey announced, as long as the Treasury continues to roll over existing debt. Toomey argued that it is “irresponsible for the administration to even implicitly threaten the possibility of a default.”
Obama administration officials don’t regard this as a matter of choice. Neither did past presidents. In fact, Bush’s first treasury secretary, Paul O’Neill, likened those who opposed raising the debt limit to “terrorists.” But Toomey, whose tea party backing helped him to vanquish Arlen Specter and then Joe Sestak, says it is “absolutely false” to claim that failing to raise the debt limit by the deadline would “equate to a default on our debt at all.”
There’s only one problem: Without borrowing, we’d have to cut Obama’s budget for 2012 by $1.5 trillion. That means even if we shut down the military and stopped writing Social Security checks, the government would still come up about $200 billion short.
Andy Sullivan of Reuters asked Toomey if he worried it “would push the country back into recession if, for example, we have to suspend Social Security payments.”
Toomey wasn’t worried. “I don’t think it’s going to have an adverse impact on the economy in the days, weeks or perhaps even months that this would continue,” he said, allowing that “this is not an optimal arrangement indefinitely.”
It may, however, be an optimal arrangement for Toomey and fellow conservatives who hope to force the Obama administration to make massive spending cuts in exchange for Republicans’ permission to raise the debt ceiling. If the notion of default is a hoax, then the administration has no leverage to force Republicans to accept even a small tax increase along with the spending cuts.
I asked Toomey if he could accept a deal that included $1 in tax increases for every $9 in spending cuts.
“The problem is spending,” he replied.
“Is that a line in the sand?”
“Yeah.”
“Not one dollar” of tax increases?
“I’m not interested in raising taxes.”
Toomey called the audience’s attention to a Wall Street Journal interview with Stanley Druckenmiller, in which the hedge fund manager argued that the markets could tolerate a “technical default” of the U.S. government’s obligations. “He has said that he would actually accept even a delay in interest payments on the Treasurys that he holds and would prefer that if it meant the Congress would right the ship,” Toomey argued.
Preferring default on the national debt? Let’s hope that’s a hoax.
Comments (25)
Add commentHere is another hoax
Millbank is a jouirnalist!!!
Why??
BDD - Simple question.....why? Why do you choose Dana Milbank as your featured OpEd? You can't seriously consider Dana Milbank as an adequate substitute for the late David Broder can you? Heck, I can't even believe you can call him a journalist. I have to tell you, your subscription to his "opinion" simply reinforces, perpetuates, and helps solidify your papers position on the political ideology scale.
Simple question BDD. Answer?
Simple question BDD. Answer?
GetaGrip
The persons who could answer are not available yet. I'll ask as soon as one of them is in.
Thanks -
Thanks Denton.......
Why are you bothering, Grip?
Why are you bothering, Grip? We both know it would take Ann Coulter or a John Birch columnist to make you happy and that ain't gonna happen. Typical far right intolerant nonsense.
'Fair and balanced', huh,
'Fair and balanced', huh, snoozy? lol
lol ...... snoozy, can you
lol ...... snoozy, can you say "knucklehead"?
Simple Question
AJ - It was a simple question, deserving an honest answer. Nevertheless, your only courage is to denegrate and deflect the issue, and the BDD's only answer is no answer. With that I can only assume that Mr. O'Rourke is the "person" to which Denton speaks of, which I guess, says everything. Dana Milbank's writings would be better paired with Alfred E. Newman.
Same Side
Actually Annie, I thought you might be asking the same question of the BDD. Of course, you taking the position that Milbank is too far right.
Grip, the far right
Grip, the far right non-thinkers that show up here were frequently unhappy with Broder also, which goes to the heart of my point. It doesn't matter whose opinion the BDD trots out ...... if there is the slightest tone of moderation in those words, the far right begins to come unglued. Open your mind and expand your point of view ........ the world is leaving right wing extremism and all forms of fundamentalism in the dust.
"the world is leaving right
"the world is leaving right wing extremism "
Because left wing extremism has worked so well. Ask Europe.
You might direct your
You might direct your question to wolfy, eyolf ...... he appears to be onto something ........ like the deck of Glen Beck's sailboat, Driftless Too. :)
Have a great weekend, people!
You might direct your
You might direct your question to wolfy, eyolf ...... he appears to be onto something ........ like the deck of Glen Beck's sailboat, Driftless Too. :)
Have a great weekend, people!
Instead of name calling
And bringing up people like Beck, Coulter and Tea Party types..doesnt it alarm ANYONE that even eliminating the military and not paying ANY social security that we would still be 200B in the red? So Annie, and the rest of you..get a grip. Taxing the Trumps and Buffets of the country a few more percentage points isnt going to solve this..we are in deep do-do. Dont you realize that? Or is it easier to just call people names and pretend we are not headed down the hopper?
It's a hoax
Obummer is not american. He was born in Kenya and the Hawaii so-called "birth certificate" is a forgery. Even the Kenyan government claims him as there own.
As for global warming, that is a lie too. Look how cool and breezy it is for memorial day. it is too darn cold. how can there be global warming when it is freezing? i am still stoking the wood stove. I thing the libs and they're agenda have made us all soft in the head! At least under Bush we had a balanced budget. How times change!
DNTMG
DNTMG
I know you think youre being smug and cute..but not working.
DNTMG may believe he/she is
DNTMG may believe he/she is "cute", tork, but it is yourself who perceives he/she as "smug". Get it?
Doesn't it "alarm" you, tork, that the conservative's "number one source for fair and balanced news and information" offers up a daily dose of insanity in the form of Beck who fervently proselytizes the President of the United States is in cahoots with George Soros, other "evil liberals", and Muslim terrorists to establish a world-wide Muslim Caliphate in order to bring down the nation?
Dealing with the debt crisis must necessarily involve both budget reductions and revenue increases. We've just witnessed in New York how ignoring the latter based solely upon idealogy turns out. Conservatives in the MN legislature would be well-advised to offer debt solutions encompassing both prudent spending cuts and tax increases rather than trotting out divisive proposals designed to limit or deny civil rights and freedoms if they have any hopes of retaining power. With past experience and the current idealogical gulf as a guide, I'm betting that the conservatives will not figure out they're once again blowing their chance at governance until it's too late ......... which it may already be.
C'mon, barnet ........ don't
C'mon, barnet ........ don't spoil the comedy. You've orbited Pluto numerous times yourself.
Annie
The idea of this op-ed is the national debt..not supposed to be about Fox News or whatever you guys tried to make it. But you said..quote*** " Doesn't it "alarm" you, tork, that the conservative's "number one source for fair and balanced news and information" offers up a daily dose of insanity in the form of Beck who fervently proselytizes the President of the United States is in cahoots with George Soros, other "evil liberals", and Muslim terrorists to establish a world-wide Muslim Caliphate in order to bring down the nation?"** It alarms me as much as Im sure (wink wink) it alarms you that the liberals get their "news" from an outlet that has had one host suspended for breaking company policy on giving money to Democrats running for re-election, and the redhead chunk of you know what from Fargo suspended for calling someone a vulgar name. (thought it was only right wingers that called people names like that..guess i was wrong) Im sure you are outraged at that lack of balance at a "news network" just as much as you are at Fox..ha ha. Plus the fact that, on a really good night, Fox will draw 3 million viewers. Now, simple math here,,,thats about ONE percent of the country..ONE PERCENT!! On a really good night they hope for 1% of a country of 300 million. Not exactly a groundswell, is it? These "news" networks are not setting the course for the country..they are a small voice. But you guys get all worked up over it. You also decry the upcoming vote to "proposals designed to limit or deny civil rights and freedoms"...you of course refer to gay marriage. Now if your side is so sure that you are right on this issue, and you in fact have the moral high ground..you should welcome this vote with open arms!!! If you are so sure you are on the right side of history it will be a landslide win in favor or gay marriage!! You are afraid you will lose? Actually, you know you will lose. Your side is only in favor of democracy when you win. When you lose, its off to the courts to overturn the will of the people.
Fact is we are in deep sheep dip. Blaming a TV network and calling people names might make you feel better, but we are on the wrong course..and nobody on either side has to guts to fix it.
"The idea of this op-ed is
"The idea of this op-ed is the national debt"
Not really, tork. More about conservative political tactics and right-wing lunacy.
"Im sure you are outraged at that lack of balance at a "news network" just as much as you are at Fox.."
MSNBC's liberal political programming was an appropriate response to the 24/7 conservative agenda promoted by Faux News for years prior, but the equivalency ends there. Faux News makes little mention of it's former "fair and balanced" claim these days (which it never was, of course) and has unabashedly evolved into the primary propaganda wing of the Republican Party. No less than 5 conservatives who until recently were all vying for the Repub nomination were paid employee's/propagandist's of Faux News: Santorum, Huckabee, Gingrich, Palin, and Bolton.
"you of course refer to gay marriage"
Should the fear-mongering prevail and MN does amend it's constitution, rest assured it will be overturned by the courts. As more often than not, you're on the wrong side of the argument. The civil rights of the minority must and will be protected if life, liberty, and the pursuit of happiness is to remain a basic tenet of our democracy.
I clearly stated debt remediation must include budget reduction and revenue increases which you've chosen to ignore. Thus endeth your brief lesson for the day, tork.
There ya go, barnet .......
There ya go, barnet ....... get it all out ....... breathe ... breathe ... Now, spit again ... hard! Better? It's just 'angry, white guy' syndrome, barnet. It always involves significant impairment of one's ability to perceive reality in an accurate and meaningful way, but is rarely fatal. Hang in there, pal ........ you're a source of genuine amusement, all the anger and rage notwithstanding.
DNTMG COMMENTS
What is your problem? Obama is a natural-born citizen, get over it. And as far as global warming is concerned read the facts. The earth is gradually warming. I don't care how many logs you have to put on the fire, facts are facts. And a balanced budget under Bush, Huh??? Clinton had a balanced budget but Georgie boy took care of that in short time. We had a deficit when he was in, check the facts, again.
DNTMG COMMENTS
What is your problem? Obama is a natural-born citizen, get over it. And as far as global warming is concerned read the facts. The earth is gradually warming. I don't care how many logs you have to put on the fire, facts are facts. And a balanced budget under Bush, Huh??? Clinton had a balanced budget but Georgie boy took care of that in short time. We had a deficit when he was in, check the facts, again.