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Boehner Prepares to Let the US Default

The top Republican in the House of Representatives warned President Barack Obama over the weekend that he’s ready to let the United States default — and that the White House is to blame.

House Speaker John Boehner (R-Ohio) told ABC’s “This Week” on Sunday that Republicans in his chamber would not immediately honor the White House’s request to raise the US debt ceiling, setting the stage for what would be the first ever federal default in the history of the country.

Answering whether he thinks a default is imminent, Boehner said, “That's the path we're on."

Boehner warned that Obama was "risking default by not having a conversation with us."

http://rt.com/usa/speaker-boehner-ceiling-default-844/



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There's something rotten in Denmark

what's going on here? All ofg a sudden Bo(eh)ner has gotten cojones and is standing up to Obama and refusing to raise the debt ceiling?
What is the source of his new found manhood? Has George Soros shorted the dollar like he shorted the Ruble and told Bo(eh)ner to collapse the economy? there are no accidents or coincidences in Worthington! something big is up.

Or I could be paranoid and what is happening is that Bo(eh)ner is afraid of losing his position as Speaker and is responding to the Tea Party and conservative members of Congress. My money's on Soros.

It only takes one to KEEP AMERICANS FREE. Know your duties & rights as a juror. Stop the unconstitutional conviction of innocents in federal custody. The Fully Informed Jury CALL 1-800-TEL-JURY www.fija.org IMMEDIATELY if not sooner. It's that important.

Boehner is probably

playing chess with Obama in some obscure hotel room in San Francisco. I trust Boehner like I trust the devil, him and Obama are on the same page, screw them both.

Those who expect to reap the blessings of freedom must. like men, undergo the fatigue of supporting it.-Thomas Paine

The R3volution requires action, not observation!!!!

northstar's picture

Another chapter in the soap opera, aka congress

They'll figure out a new gimmick to pass, but oh they'll put everyone on the edge of their seats and make this a nail biter fo-sho!

Tune in :-/

Real eyes realize real lies

We want our country back

Every year is a year for Ron Paul!

answer me dis,

if they default, will I still have my free obama phone to use?

Who borrowed the money??

After my personal experience trying to get Ron Paul elected president it became clear to me that we are again experiencing TAXATION WITHOUT REPRESENTATION.

I say we do an Iceland on the crooks.

Astute

political maneuvering, indeed

PEOPLE! BONER is in it with

PEOPLE! BONER is in it with Obama. You still have not figured that out yet? SCARE TACTICS..... LMAO. COME ON!

People are being held hostage

By the two party system. I can't believe the Daily Paul's blind support for this modern Republican Party and their guerilla tactics. In any event, I will watch as the nation makes a fool of itself worldwide, yet again, under another president, and another dysfunctional Congress.

meekandmild's picture

The 1933 Bankruptcy of The United States

United States Congressional Record, March 17, 1993 Vol. 33, page H-1303

Speaker-Rep. James Traficant, Jr. (Ohio) addressing the House:

"Mr. Speaker, we are here now in chapter 11.. Members of Congress are official trustees presiding over the greatest reorganization of any Bankrupt entity in world history, the U.S. Government. We are setting forth hopefully, a blueprint for our future. There are some who say it is a coroner’s report that will lead to our demise.

It is an established fact that the United States Federal Government has been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1, Public Law 89-719; declared by President Roosevelt, being bankrupt and insolvent. H.J.R. 192, 73rd Congress m session June 5, 1933 - Joint Resolution To Suspend The Gold Standard and Abrogate The Gold Clause dissolved the Sovereign Authority of the United States and the official capacities of all United States Governmental Offices, Officers, and Departments and is further evidence that the United States Federal Government exists today in name only.

http://www.afn.org/~govern/bankruptcy.html

Bogus

That page has a link at the top and bottom to an image of the printed Congressional Record, so anyone can check their source:
http://www.afn.org/~govern/traficant.gif
But if you check their source you can see for yourself that what they're presenting as a transcript is completely bogus except for the first paragraph. You can confirm via Thomas that the image of the printed record is the accurate one.

The afn page was posted in 2000. It's been linked and forwarded many thousands of times. And it puts its own debunking one click away from everyone who visits. Amazing.

Congressional Research Service says Constitution suspended.

In 1973, the CRS report Senate Report 93-549 (1973) stated that the constitution had been suspended for 40 years, since March 9, 1933.

http://www.barefootsworld.net/war_ep.html

The report is available at Federal Deposit Libraries but must be ordered in advance.

Default on what? The system

Default on what? The system is bankrupt to continue with unaffordable Obamacare.

Raising taxes

Such as duties and tariffs would improve the revenues.

How much is exported today anyway?

Not a free trade deal but I do not think raising taxes anymore on taxpayers is going to help.

Even with spending capped the debts will grow because of rising rates in the future. Where will the shortfall be made up?

Politically and realistically speaking, spending will not be reduced.

donvino

It instantaneously balances

It instantaneously balances the budget and trust me, it's a great jobs program.

The question is, what will

The question is, what will this do to my money in the bank? If devaluation occurs still at a slow pace, I can leave it there for now. If it starts becoming rapid, I will need to spend it quick.(for those curious, its there for basic expenses and any possible emergencies, as I dont currently have a job)

To climb the mountain, you must believe you can.

Hyperinflation if the Bernank

Hyperinflation if the Bernank drops money from helicopters, greatest depression if the Fed does not.

Hyperinflation =great

Hyperinflation =great Depression

coffee_sponge's picture

The talk of default is complete nonsense.

Do the math: about $250B monthly revenue; about $25B in debt service with plenty of money left over for all truly essential functions like the military.

Socialist Insecurity has its own fund, and by law the checks must go out.

What the politicians may be worried about is a sudden inability of the U.S. Government to continue debt expansion through massive borrowing. Credit demand has collapsed, so no more government debt means the credit bubble may suddenly begin to deflate, triggering a massive deflationary depression.

Of course I believe deflation is inevitable anyway. The question is not if, but when. No debt ceiling increase may provide the tipping point. I think this is what scares the politicians, who apparently believe they can delay the inevitable at least until they are gone from office, in which case their successors will be stuck holding the bag.

No, the checks are not required by law to go out.

The Constitution specifies that money cannot be withdrawn from the Treasury except in consequence of Appropriation by Law.

If Congress does not appropriate the money for the checks - they don't go out.

The SSA of 1935 does NOT require payment of any check. It AUTHORIZES the Secretary of the Treasury to issue welfare checks IF he deems it "in the General Welfare" to do so.

He is not even required to issue them.

The "tax" imposed by the SSA of 1935 by LAW goes to the General Fund with ALL OTHER TAXES, and is NOT in any way "earmarked" for any benefit check.

You are misinformed by your own government.

Congress has already set the

Congress has already set the terms for the checks to go out. Unless they act, those checks are required to go out.

Specifically speaking to the very near term - you are correct.

But in general, no, absent the appropriation's law with an amount, they can't go out.

But the appropriations law

But the appropriations law doesn't, and wouldn't, include social security payments.

But something just occured to me: the actual people who have to send out the social security checks ARE paid by appropriations, so perhaps there will be something of a conundrum.

EDIT: This may be interesting to you: See this: http://en.wikipedia.org/wiki/Mandatory_spending

SECOND EDIT: Why do I use so many colons?

It has to include them.

They can not be legally paid otherwise.

The appropriations bills do

The appropriations bills do NOT include social security payments.

The authority to spend money on social security payments is included in the authorization legislation itself, and does not depend on appropriation bills, continuing resolutions, etc.

There is no requirement that all government spending must be placed in an omnibus appropriations bill.

Michael Nystrom's picture

Debt expansion is really the issue

Because if there is not expansion, there is contraction, and that just won't do!

O M G there is going to be a panic.

No debt ceiling increase may provide the tipping point. I think this is what scares the politicians, who apparently believe they can delay the inevitable at least until they are gone from office, in which case their successors will be stuck holding the bag.

Yes, I think this is what it comes down to. This particular set of politicians, is the one who got the can kicked to them, right at the end of the road. And the end of this road is a vacuous chasm. Truly, the unknown.

We stand at the precipice of the Unknown, and the amazing thing is - no one really cares. They think this is politics as usual.

I'm not sure it is. I don't see the endgame.

But as you point out - the day will inevitably come when they cannot borrow more money. The game will end.

I don't know. This might be a Breakpoint. A phase change.

It is definitely a crisis point. Can they resolve it without structural damage of some kind? I highly doubt it.

The only way to make sense out of change is to plunge into it, move with it, and join the dance. - Alan Watts
coffee_sponge's picture

Thanks for the link, Michael.

That looks like a fascinating book. I just ordered a copy.

Michael Nystrom's picture

I read it a long time ago, and it had a profound impact on my

thinking. I hope you enjoy it.

I should get my copy back out and take a look again.

We're moving into some unpredictable territory with this shutdown.

This is where weird, unpredictable things start to happen.

The only way to make sense out of change is to plunge into it, move with it, and join the dance. - Alan Watts

We'll have to close some of

We'll have to close some of our 900 military bases around the world.

We wont close them

They will ne leased out to other interests..

Wall Street Journal numbers are bogus

The generally quoted figure is that the U.S. takes in ~2.4 trillion in taxes and spends something like $3.6-3.8 trillion for a shortfall of ~$1.2-1.4 trillion. But that shortfall figure only considers the U.S. general fund, not Medicare and Social Security or off-budget military spending, which partially depend on money from the general fund to meet their full obligations. When these obligations are considered, U.S. federal spending is more like $6.6 trillion, not $3.4-3.6 trillion Shadowstats.com.

If we elect to raise the debt limit, our creditors may (1) raise interest rates on borrowed money; (2) sell off U.S. IOUs (Treasury bills) at a discount, in effect devaluing the US dollar in international trade which results in massive inflation (oil in particular), or (3) cease lending to the US altogether, throwing the U.S. into a financial tail spin as it relies on borrowed money to meet its daily obligations (~$17 billion/day).

US creditors have been given priority even over Social Security to get paid.

The US Treasury has about 1-2 days cash on hand and without ability to borrow money cheaply, the economy collapses.