Joe Levi:
a cross-discipline, multi-dimensional problem solver who thinks outside the box – but within reality™

The Debt Ceiling & Impending Economic Collapse

Support the Study Committee Spending Cuts!

The push is on with the political establishments of both parties to convince American voters that the federal debt ceiling MUST be raised.  They falsely claim that to fail to do so would mean the United States defaulting on its debt obligations. But that simply isn’t true! This frightening but bogus campaign is being promoted by politicians, Republicans and Democrats alike, drunk with the power of spending your money and loathe to sober up. But it is false, and it must be resisted.

House Speaker John Boehner, who should be holding the debt ceiling down, recently was quoted saying:

“Congress MUST approve taking on more debt, which currently is growing by more than $4 billion per day. If it doesn’t approve raising the ceiling, then the U.S. will default on its loans and lose its standing as the globe’s most reliable bet.”

This is a LIE.

The truth is that the United States DOES NOT lack the funds to pay its current debt obligations. We DO lack the funds to pay our current debt obligations AND squander billions and trillions more on the needless spending follies of feckless politicians and out-of-control government!

According to Senator Pat Toomey (R-PA) in the Wall Street Journal recently:

“…if Congress refuses to raise the debt ceiling, the federal government will still have far more than enough money to fully service our debt. Next year, for instance, about 6.5% of all projected federal government expenditures will go to interest on our debt… why would we ever default? To make absolutely sure, I intend to introduce legislation that would require the Treasury to make interest payments on our debt its first priority in the event that the debt ceiling is not raised.”

So the TRUTH is, staying within the current debt ceiling would merely force Congress to do the difficult work which it has been entrusted by We the People to do — STOP the SPENDING, and get government out of the way and out of our business, to permit the restoration of our nation’s financial health!

America is headed for an unprecedented economic crash, and amazingly, the Republican Establishment still doesn’t understand the crisis which confronts the nation.  While GOP “leaders” fuss and tinker around the margins, bolder souls in the Republican Study Committee (RSC) have unveiled their Spending Reduction Act that proposes to reduce federal spending by $125 billion in FY 2011-2012, and cut $2.5 trillion over the next 10 years.

Included in the Act’s specific provisions are:

  • Overall spending CUT to 2008 levels, with discretionary spending CUT to 2006 levels.
  • Unspent “stimulus” money RETURNED.
  • Civilian government workforce CUT by 15%.
  • Government subsidies ELIMINATED to the Public Broadcasting System, the National Endowment for the Arts, Amtrak, the National Organic Certification Cost-Share Program, Fannie Mae and Freddie Mac, among other agencies and programs.
  • Funding for implementation of ObamaCare BLOCKED as well as taxpayer money RESTRICTED from use by government and public services lawyers to defend any ObamaCare provisions in court.

The Republican Study Committee has more than 170 members in the U.S. House and will have Sen. Jim DeMint of South Carolina as a co-sponsor of the Spending Reduction Act in the Senate.

“This is not just rhetoric.  It’s about saving our country [and] saving our currency,” said DeMint. According to Human Events magazine, RSC members will seek a stand-alone vote on the Act, but also promise to use votes on increasing the debt ceiling, extending the Continuing Resolution, and passing a 2011-2012 budget to force these cuts as necessary through the House and Senate.

These are strategies that WILL WIN, but only if we support the Constitutionalists in Congress working to save America! Make ALL of Congress SEE the LIGHT and FEEL the HEAT!!

This will happen, only with YOUR help!  The tut-tuttery is already rising among some in the GOP “leadership” that the RSC cuts are “too severe” and not necessary if the new debt ceiling is sufficiently restricted.  And I’m sure you have been receiving voluminous amounts of earnest email and direct mail requesting that you support Republican plans to “cap the debt ceiling with a modest hike tied to reasonble spending cuts, or even capped at its current level. But here is what they aren’t telling you… The ceiling is going to cave whether the debt limit is increased or not WITHOUT MASSIVE SPENDING CUTS. Like the Metrodome, the roof will eventually collapse if the existing “snow” is not removed. Saying you won’t add more debt won’t relieve the problem of the weight that is already making the supports buckle.

The reality is, if we only cap the debt ceiling, without immediately cutting massive amounts of spending, and severely cutting longer-term federal fiscal liability, then the spendthrift politicians in office (REMEMBER, Obama and the Democrats have the White House and Senate at least until 2012) are perfectly capable of allowing the United States TO DEFAULT on its loan payments. The “full faith and credit of the United States” will be completely meaningless, our currency will be worthless and our already strained economy will crash into historical Weimar Republic (or more recent Zimbabwe-level) standards – where three eggs recently cost 100 BILLION Zimbabwean dollars! BUT THIS COULD ONLY HAPPEN THROUGH OUR PASSIVELY PERMITTING THE CONGRESS TO TOTALLY MISMANAGE THE NATION’S BUSINESS!

Frankly, the debt ceiling is a comparative non-issue if the Republicans simply do what we sent them to Washington to do — CUT SPENDING!Cut it not with a butter knife like the previously proposed paltry $1 billion cuts, (0.07% of our debt); but with chainsaws, axes, mowers and cleavers!

The cold hard fact is 40 cents of every dollar the U.S. Government spends is BORROWED. That means the budget must be cut by at least 40%. There are some very easy and some very hard choices to make in the days ahead, but the men and women of the 112th Congress were sent to Washington on the promise they would make responsible decisions to keep America a constitutional republic, not a degraded and bankrupt socialist swamp. SO STARTING TODAY, WE HOLD THEM ACCOUNTABLE!

Do not let the RINOs and the leftists in Washington pull a Nancy Pelosi — telling you one thing, doing the other, hiding truth from the American public and playing the same old game of “stuff-your-pockets politics with the Peoples’ money.” The spending must stop, NOW! And it must be cut on longer-term liabilities for years to come.

If the 112th Congress simply cuts the budget, seriously and severely, economic collapse CAN be averted and there will be no need to raise the debt ceiling — in fact we could LOWER it, saving our children and grandchildren from economic slavery. There are countless wasteful, irresponsible, unconstitutional programs and expenditures thoroughly researched and documented and crying to be cut! There is a bright future in store for America — we WILL remain the land of the free, the home of the brave, IF WE ACT. But if we intend to remain a beacon of hope to the world, we must return to the bootstrap ideals of decent self-reliance and personal responsibility that made this country great. This is only possible if we get our financial house in order and cut the budget. THERE CAN BE NO COMPROMISE — THE FECKLESS, UNCONSTITUTIONAL, PROFLIGATE SPENDING MUST STOP NOW!

I have argued for years that this problem is at root not a “money problem” but a moral and ethical problem which the American People, and the Representatives they entrust with governance of our great nation, MUST take in hand.

When your credit cards are maxed out and you can’t make the payments, you cannot simply go to the bank and demand a higher credit limit so you can keep living like a king. And it is not enough to simply cut up the credit cards and leave the credit limit where it is and not pay on what you owe — because the debt is still there, the principle plus interest is growing and the payments alone will soon exceed your earnings and your ability to even service the debt, much less pay it down and retire it. Expenses must be cut back until the principal on the borrowed money can be repaid. This is how you and I operate in our own households, and this is how we must insist Washington operate as well.

Keep Faith,

Alan Keyes


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