NATIONAL DEBT – The End Run – Within 6 weeks the U.S. government will run out of money. There are two bills being pushed by Republicans that require close watch: S.163 (Senate) and H.R.421 (House). If these pass then we should expect Republicans to vote not to raise the national debt.
These bills are called the ‘Full Faith and Credit Act’; passage requires that the government pay our creditors first (China et al) and then adjust satisfaction (payments) to all other federal debts: national budget, social security, medicare, wars, etc.
As a conservative I believe in balanced budgets, although balanced budgets are not uniquely a conservative concept.
What successful passage of these bills would do, prior to any national debate on bringing our debt under control, would be to force the federal government to radically slash federal programs. The real question is whether programs would be slashed equally — all priorities being of equal priority to someone else — or whether certain programs would be exempted, like defense.
If defense is included, an across the board expenditure reduction may be 20-22%. Without defense included then all non-defense programs would probably face almost 40% cuts.
The short version explanation of what these bills do: allows Republicans to vote not to raise the national debt level and then force the government to pay our creditors first (China et al) and then to slash any remaining expenses (social programs) so that the expenses match taxes collected.
It does not say that defense will be spared, but that is the Republican way, and Republican leadership have declared that defense will not be touched. To the Tea Party’s credit many Tea Partyers have been vocal that defense must be on the table.
I support the concept of both bills if it were implicit that ALL federal expenses were to be cut equally. But that is most unlikely.
It is also most unlikely that Republicans would engage in any real dialogue or negotiation of federal budget and national debt reduction discussions if these bills pass without there being an agreed upon federal expense reduction agreement in place first.
The Democrats would be fools to allow these bills to pass just so the Republicans could pillory them on being weak on defense by cutting defense equal to other federal programs. Yet the majority of the debt and discretionary spending causing our massive national deficits is directly attributable to defense and to security which represents $2 out of every $3 of discretionary spending.
Text of Senate Bill S.163
Text of House Bill H.R. 421