Don’t Blink

I admit it; I am a hopeless science fiction fan.  This year one of my favorite sci-fi shows, Dr. Who, celebrated its fiftieth year.  In some of the episodes Dr. Who is battling “The Weeping Angels.”  The Weeping Angels are statues of angels and if someone makes eye contact with them and blinks, they are dead.  I believe this is a great illustration of what is going on with the current negotiations, or lack of negotiations, between Congress and The President. 

Based on past negotiations between Speaker Boehner and Obama, I am concerned that Boehner will indeed blink again and Boehner along with the citizens of our nation will be strapped with Obamacare and debt that threatens to kill our economy along with the wealth of our nation’s citizens.  My message to Speaker Boehner and the rest of the Republican leadership is don’t blink or you’re dead.  Speaker Boehner you do not even have to blink for whether you know it or not, we are winning this debate.  This is why.

There is no reason we have to default on our debt payments if Congress fails to raise the debt limit.  This is because making the debt payments is a matter of cash flow, something the Federal Government has plenty of. 

In a recent interview, Senator Paul (R-KY) stated that there is no reason for the country to default on its debt payments because the country averages $250 billion in revenues each month.  The debt payments average $20 billion leaving $230 billion to fund other necessary functions of government.  (1)  In other words, the treasury has enough money coming in each month to make the debt payments. 

The excuse currently used by liberals and RINO republicans is that Senator Paul’s numbers are averages.  The cash flow to the government is massive in months when quarterly tax payments are due and slow in other months.  This is true but the quarterly payments for the third quarter are due October 15, two days before the nation expects to default on its debt payments.  I recommend the treasury make the debt payments out of this money and set up a reserve to make the payments for the next two months until they have another windfall month when the fourth quarter payments are due.  Of course, this makes sense, something missing in Washington at this time.  However, this does not mean that there will not be a time when the country faces default so changes in the fiscal policies in Washington must change. 

This is not a debt crisis it is a spending crisis.  Our government continues to spend more money than it brings in.  Liberals use this as the reason why taxes on the rich need to be increased.  This was tried in California and resulted in a drop of 33.5 percent in revenues to government.  (2)  So we raise taxes on the rich, revenues go down and deficits will actually go up, at least that is how math works in realville.  The only way to end the continual deficits that keep increasing the debt is to cut spending. 

If we do that, children will starve, and people will die oh no.  Give me a break.  We have just gone through 11 days of government shutdown and I have not heard of people starving or dying.  Only 17 percent of the government has shut down and we survive as a nation.  (3)  This proves that a 17 percent reduction in spending would have little effect on the nation as a whole. 

Ok, but this whole shut down was not about spending, but about Obamacare, which is true but this only proves my point.  Obamacare is on course to become another unfunded mandate like Social Security, Medicare, and Medicaid, as actuaries will need to make projections for health the care needs of an aging population.  Many are not aware that that these mandates are not included in the debt figures we hear about in the media.  This is because they are long-term debts that are not due immediately and therefore are not urgent.  As of July 2012, the total debt including these unfunded mandates totaled $84 trillion.  (4)

However, as the Baby Boomers age and the few children they had have to support them, these unfunded mandates will require funding from a shrinking tax base.  (5)  This coupled with a government addicted to out of control deficit spending will accelerate the day of reckoning when the cash flows into the treasury will no longer be able to cover debt payments.  It is on this day of reckoning that the nation will have no choice but to default. 

However, we are not at the day of reckoning yet but now is the time to begin reversing the trend of out of control spending before it is too late.  By not blinking during these current negotiations, Conservatives have the best opportunity they have had since the 1995 shut down to reverse this trend.  During that shut down, the conservative controlled Congress was able to pressure the Senate and President Clinton to agree to welfare reform and spending cuts resulting in surpluses.  The only question is will this Congress have the guts to stand up to this President as the Congress in 1995 did. 

Unfortunately, the gains of 1995 were lost as the Congress returned to it’s out of control spending ways during the Bush administration and massively accelerated the process during the Obama administration.  This is why we need constitutional safeguards as I discussed in my post on October 2 but for now, we need to plug the hole in our sinking ship by getting control or our steroidal out of control spending. 

Unfortunately, it appears the Republican Leadership in the House is preparing to blink, giving Obama everything he wants.  (6)  However, this does not mean the Democrats and Obama have won for the House can reject this offer.  It is time for us to once again flood the Congressional switchboard and email accounts urging our Representatives to reject this offer.  Remind them that there is no reason to fear default because there is sufficient cash flowing into the treasury to make debt payments.  Remind them that we elected them to stop Obamacare and that this is the only way of doing it at this time.  Remind them that we elected them and put them in power to end Obamacare and the out of control spending in Washington and if they fail to live up to their promises, we will replace them with leaders who will in 2014.

This fight is far from over and even if our squeamish leadership in Congress blinks and is devoured by the liberal statist “Weeping Angels,” we the American People have not blinked and do not intend to.  This is our country and we are going to fight to preserve it. 

1. Kessler, Glenn. Rand Paul’s claim that there is ‘no reason for us to default’. www.washingtonpost.com. [Online] The Washington Post, October 11, 2013. [Cited: October 11, 2013.] http://www.washingtonpost.com/blogs/fact-checker/wp/2013/10/11/rand-pauls-claim-that-there-is-no-reason-for-us-to-default/.

2. Dvorak, Kimberly. California’s tax revenue drops 33.5 percent exposing Sacramento’s delusion. beforeitsnews.com. [Online] Before It's News, August 21, 2012. [Cited: October 11, 2013.] http://beforeitsnews.com/tea-party/2012/08/californias-tax-revenue-drops-33-5-percent-exposing-sacramentos-delusion-2449544.html.

3. Foxnews.com. Estimate shows 17 percent of government is actually shut down. www.foxnews.com. [Online] Fox News, October 07, 2013. [Cited: October 11, 2013.] http://www.foxnews.com/politics/2013/10/07/reports-show-less-than-20-percent-fed-government-is-really-shut-down/.

4. Bastasch, Michael. Report: Federal unfunded liabilities total $84 trillion. dailycaller.com. [Online] The Daily Caller, July 16, 2012. [Cited: October 11, 2013.] http://dailycaller.com/2012/07/16/report-federal-unfunded-liabilities-total-84-trillion/.

5. USA Today. As U.S. birth rate drops, concern for the future mounts. www.usatoday.com. [Online] USA Today, February 13, 2013. [Cited: October 11, 2013.] http://www.usatoday.com/story/news/nation/2013/02/12/us-births-decline/1880231/.

6. Flynn, Mike. HOUSE GOP BLINKS: WILL LIFT DEBT AND REOPEN GOVERNMENT. www.breitbart.com. [Online] Breitbart News, October 11, 2013. [Cited: October 12, 2013.] http://www.breitbart.com/Big-Government/2013/10/11/House-GOP-Caves-Will-Lift-Debt-AND-Reopen-Government.