Debt ceiling or default?

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Human Events:

Debt ceiling or default?

By: Mark LaRochelle

2/2/2013 11:09 AM

According to his 2013 budget, President Barack Obama anticipates about $2.9 trillion in revenues this fiscal year, but wants to spend $3.8 trillion. To make up the shortfall, he needs to borrow another $900 billion, on top of our existing $16 trillion debt. To help him out, congressional Democrats want to repeal the debt ceiling, in force since 1917. According to the president, even asking whether it’s prudent to hike that ceiling raises “the threat of default.”

BUNK

Being unable to borrow another $900 billion this year wouldn’t force Obama to default on the debt. Indeed, the president is constitutionally prohibited by the 14^th Amendment from doing so: “The validity of the public debt of the United States, authorized by law … shall not be questioned.” Payment of interest on the debt is thus guaranteed, unlike other federal spending – including Social Security, which is explicitly not so protected.

 

Fortunately, we don’t have to choose between servicing the debt or paying for Social Security.