The only obligation congress has is to pay back with interest what they borrowed from the SS fund.
On Thu, Jul 14, 2011 at 8:15 AM, ray <[email protected]> wrote: > Congress has a contractual obligation to pay debt owed. If debt > ceiling is not increased, choices will have to be made as to what > will, and will not, be paid. All debt could still be paid if expense > were cut from federal operating budget. There is enough "FAT" in > annual federal operation expense that costs can be trimmed, and debt > paid, rather easily. Very few in congress have the nerve to tell a > voter or contributor that their program will be abolished or severely > reduced. This is where the problem lies. > > On Jul 12, 11:33 pm, studio <[email protected]> wrote: >> Well, SS doesn't need to finance your time on the Internet anyway. >> --- >> Consequences of defaulting on the federal debt >> >> Congress has the duty to honor the debts of the United States by >> raising the federal debt ceiling under the "full faith and credit >> clause," Article IV, Section 1, of the U.S. Constitution, and Section >> 4 of the 14th Amendment to the U.S. Constitution. Not raising the >> federal debt ceiling will cause a default on the U.S. debt in >> violation of the U.S. Constitution. >> >> Has the U.S. ever defaulted on its debt? Well, in a technical sense >> yes, briefly and unintentionally when Congress waited to the last >> minute to act to raise the federal debt ceiling in 1979. Our present >> situation differs where Tea-Publicans are threatening not to raise the >> federal debt ceiling intentionally to put the nation's debt into >> default. That will shake the confidence of the international markets >> in the ability of the U.S. government to govern itself and to honor >> its debts. >> >> All lending agreements, whether between central banks of countries, or >> your mortgage or credit card agreement, have a "default" provision >> that automatically escalates the rate of interest to a default rate in >> the event of default. For many, this will affect your credit >> worthiness and make credit unavailable. The banks will "adjust" the >> interest on all credit agreements. Default will cost Americans >> hundreds of billions of dollars in additional interest and tax dollars >> to finance the interest on the federal debt over time. >> >> So when you hear the darlings of the Tea Party like Sen. Jim DeMint (R- >> SC) and Rep. Michele Bachmann (R-MN) say they are going to vote >> against raising the federal debt ceiling because they "don't believe" >> anything bad is going to occur, just keep in mind that they are >> ignorant of history, ignorant of economic principles, ignorant of how >> the international monetary system works, and ignorant of how >> international markets work in the real world. >> >> Why would any sane person listen to what an ignorant fool has to say >> when all the experts in the field who do this for a living say it will >> result in a debt crisis and another recession? >> >> http://www.blogforarizona.com/blog/2011/07/consequences-of-defaulting... >> --- >> Not even mentioning all the checks government writes out to people >> like Travis, military personnel, pensioners, etc. etc. etcetera. > > -- > Thanks for being part of "PoliticalForum" at Google Groups. > For options & help see http://groups.google.com/group/PoliticalForum > > * Visit our other community at http://www.PoliticalForum.com/ > * It's active and moderated. Register and vote in our polls. > * Read the latest breaking news, and more. -- Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more.
