The media and the Democrats are acting like the failure to raise the debt ceiling will result in catastrophe. Anyone who isn’t brain-dead knows that financial catastrophe is ahead no matter what we do, but the question is whether or not we will deal with it as rational people or if we will make it worse than it has to be.
The President and the media, along with the global ruling class, have decided to make it worse.
But what is more frightening than the hysterics about the alleged catastrophe that will result if we don’t raise the debt ceiling is the reasoning that is openly espoused to justify raising it.
As you can see from this radio program, the reason given for raising the debt ceiling is not primarily to fund welfare payments, national defense, or any other “service” that government provides at maximum inefficiency.
No, the reason we must raise the debt limit is because we need to do so to avoid default on our debt.
Some Republicans deny this must happen. They say the government can prioritize so that there is no default. This would mean a true spending freeze instead of the insane non-cuts of “sequestration” that everyone pretends are so drastic. It would be a wonderful thing. I think the Conservative Republicans are obviously right that we can keep the debt limit where it is and not default, but I really don’t care about that.
What is terrifying is that we have an entire establishment consensus that it is a matter of national security and world stability that the United States Government borrow money in order to pay interest on borrowed money.
So we are not only assuming that we are in a economic apocalyptic death spiral to insolvency, but the nation’s leaders are openly advocating that we speed down that spiral faster and only push harder on the gas pedal. Anyone who talks about tapping the brakes is an enemy of world civilization.
What does this mean?
If you have to borrow money to pay interest on borrowed money then there is no longer any logical way to deny it: we are going to default. Period.
Of course, if we seriously refused to raise the debt ceiling and froze spending, we could, for the first time, actually begin to heal the world economy. We would show investors unprecedented evidence that the United States was not necessarily a continent-wide exercise in group financial suicide.
The people claiming that a refusal to raise the debt ceiling would scare investors because of the fear we will default have it exactly backwards. Raising the debt ceiling is more evidence that we are committed to default. Perhaps buyers of American debt will figure they have a few more years to get easy money, but the general message will be that we don’t have the will to avoid default.
There can be no other result. We have to stop borrowing to restore faith in the credit of the United States.