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Debt Ceiling Fear Tactics

July 26, 2011

According to Congressman Brad Sherman and Senator Inhofe, Treasury Secretary Henry Paulson threatened there would be martial law if the 2008 banker bailout bill was not passed.  Paulson was not the only official resorting to financial terrorism, the use of fear tactics to coerce support for bad policies is all too common.

Let’s take the debt ceiling issue.  The Obama Administration and most of the mainstream media are painting a gloomy scenario of bond default, and what can ensue, should we not raise the obscenely high debt ceiling. Instead of being trustworthy stewards of our money, fear-mongers like Treasury Secretary Tim Geithner continue to sell the lie.

Interest on the Federal debt amounts to $386 billion this year and we took in approximately $2.1 trillion in 2010 in federal taxes.  That’s plenty to cover interest payments, but way short of the remaining budget.  Freezing the debt level will force the government to downsize, while continuing to service Treasury interest.

Senator Jim DeMint admitted, “we are not going to default, we have plenty of tax revenue … ”  He also accused Geithner of playing Chicken Little by creating panic.  Chris Whalen of Risk Analytics said there is no downside to not raising the debt limit, stating there will be no default because interest will be paid first.  So, it boils down to a choice of whom to pay first.  Clearly, Washington has solved nothing since the continuing resolution earlier this year; the last thing the establishment wants is to diminish government power.

In all this theater, there remains a rock solid solution bellowing in our midst.  We need to seriously cut the government.  It is too big, too wasteful, corrupt, interferes too much and threatens to destroy our God-given freedoms.  As we defund wasteful agencies and programs, massive tax cuts will allow the private sector to grow new shoots of life for a budding economy, after a season of difficult adjustment.

John K Rooney

Tri-Cities Liberty Alliance

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