The lie at the heart of Ted Cruz's dangerous debt-ceiling strategy

[babylonsister]

The lie at the heart of Ted Cruz's dangerous debt-ceiling strategy
Ted Cruz plans to filibuster an extension of the debt ceiling. His rationale is based on a rather obvious lie.
Sept. 21, 2021, 8:00 AM EDT
By Steve Benen

snip//

There are plenty of members of Congress who are badly confused about the substantive details of governing. As a rule, Cruz isn't one of them. I've long argued that the Texas Republican's principle political problem is not that he's dumb, but rather, that he assumes everyone else is dumb.

His comments on the debt ceiling capture the problem nicely. As Cruz surely knows, raising the debt ceiling allows the United States to pay its bills, not to clear the way for new spending. The process is about paying for the stuff Congress already bought in the past, not giving lawmakers approval to buy new stuff in the future.

The GOP senator, in other words, is preparing to block important legislation — a bill that would prevent the United States from defaulting on its obligations for the first time in our history — based on a rather obvious lie.

If Cruz follows through on his gambit and his effort succeeds, the results would be catastrophic. As The Washington Post's Catherine Rampell explained in her new column:

The government would have trouble paying Social Security checks, military salaries and all the creditors who'd previously lent money to Uncle Sam. A default would also violate the Constitution, which says "the validity of the public debt of the United States ... shall not be questioned." Finally, it would trigger chaos throughout the global financial system. Financial markets currently treat U.S. debt as virtually risk-free, with all other assets benchmarked against it. If we demonstrate that our debt is not really risk-free — that we're instead cavalier about repaying our creditors — panic would tear through other markets as well.

more...

https://www.msnbc.com/rachel-maddow-show/lie-heart-ted-cruz-s-dangerous-debt-ceiling-strategy-n1279708

[berni_mccoy]

1. They want America to fail if they can't exclusively rule

[Champp]

6. And that's what their intimate big money-buddy Putin wants as well

[RicROC]

8. another form of domestic terrorism

[gab13by13]

2. The Republican party

understood the consequences of not raising the debt ceiling, the GQP does not care.

[tanyev]

3. It's like if someone took a trip to a resort in Cancun and refused to pay the bill when they left.

[FBaggins]

4. Both sides are lying ("spinning" if you prefer)

As Cruz surely knows, raising the debt ceiling allows the United States to pay its bills, not to clear the way for new spending.

It does both. Not one or the other.

[jaxexpat]

14. If the ceiling rise equals the existing over-

extension then it does not account in any way for new spending until the current debt is met. It is not necessarily a foregone conclusion that spending will rise.

[FBaggins]

17. That's a larger "IF" than you may realize

That's the main reason that Schumer/Pelosi want to avoid raising the ceiling and instead go with trying to suspend the debt ceiling for a year.

We have the ability to increase the ceiling through reconciliation without a single republican vote. The problem is that this requires us to actually pick a new figure for the ceiling. That new figure necessarily includes both the amount of debt expected to be added by already-passed legislation and debt anticipated from any new spending. With the new spending anticipated in bills yet to pass (combined with the fact that the spending is comparatively front-loaded compared to the revenue funding it), that new figure is likely to be shockingly large.

[jaxexpat]

20. Oh, I get it that Schumer and Democratic agenda etal would like to see the myth.....

of a firm debt ceiling suspended vs raised or exceeded. To pass the legislation they were elected to provide, they should just do it. They should tell the American people the ceiling is not useful because it isn't real and never was. Then propose spending right through it as if it were the ethereal fog of fairy farts it is. It's existence serves only the Republicans who, with the help of the media, will raise it whenever they "must" and blame it on the Democrats. It has helped them them to sell their trademark falsehoods of fiscal responsibility and business acumen since the time of J D Rockefeller's ascendancy to sainthood.

Democrats usually (and publicly) provide a plan to finance their spending proposals. It's thoughtful and honest but opens a path to criticism that even a cub Fox reporter could drive a dump truck load of fake outrage through. The Republicans just lie and do what they want, refusing to accept criticism and deflecting tough questions onto the left. (How else is a creature like Pompeo allowed out of house arrest?) It helps to own a media. Especially one staffed by people so stupid as to actually believe they're somehow independent.

[Maraya1969]

5. They should rename that process from "Raising the debt ceiling" to "Paying our bills"

It would make it much more difficult for people like Cruz to mess with it

[gab13by13]

7. The debt ceiling should be eliminated,

there is no viable use for it other than political gamesmanship.

[lastlib]

12. THIS!

It is what engineers call a "dunsel": a part that serves no useful purpose--except, of course, republiqon greed for power over the weak and afflicted.

[paleotn]

13. Absolutely agree!!

[ProudMNDemocrat]

9. Talk about a WORLD WIDE Depression...

Not just the financial markets here, but everywhere around the world.

COVID put a stop to a lot. The GOP intends to DESTROY it all and then BLAME the Democrats for it.

It is past time for the Congressional Democrats to play hardball and use strong language to make things clear.

[Johnny2X2X]

10. Dems have to blink on this one

If we default, the Dems will get 99% of the blame. Do not default on our debt.

[Bev54]

11. As a Canadian, I do not understand this approval of the debt ceiling

Where did this come from, when you have spent the money then you have no choice but to approve it. The funds were approved by congress to spend in the first place, why do they have to do it again after the money is spent?

[FakeNoose]

15. This Wikipedia article might explain it a little

It appears to have been written during Obama's 2nd term, so it is slightly out of date.
https://en.wikipedia.org/wiki/United_States_debt_ceiling

Also this page might be interesting, but a little overwhelming, a lot of numbers here:
https://www.usdebtclock.org/

[katusha]

16. question about process

Can Executive branch declare national emergency and pay debts citing constitutional obligation under 14th amend 4th clause:https://constitution.congress.gov/browse/essay/amdt14-S4-1-1/ALDE_00000849/

[FBaggins]

18. I think your answer is right there in the first sentence of 14A

"Authorized by law"

[TXPaganBanker]

19. He did the same nonsense in Sept 2013

All to curry favor with the Tea Party. It ultimately led to absolutely nothing legislatively, but dipped the USA's credit rating and affected markets. Oh! And he got to read the nation Green Eggs and Ham.

[keithbvadu2]

21. Donald recommended defaulting on the national debt.

Donald recommended defaulting on the national debt.

Negotiating with the creditors to take less money.

Don’t forget that much of America’s debt is owned by Americans, not just the Chinese and other foreigners .

Donald Trump's Glorious Threat To Default On The National Debt Is Just The Conventional Wisdom

https://www.forbes.com/sites/timworstall/2016/05/07/donald-trumps-glorious-threat-to-default-on-the-national-debt-is-just-the-conventional-wisdom/#59ab980ca367

[AllaN01Bear]

22. these dumb bunnies dont care . they have raise the debit celing

for r preses and not for dems .

[ashredux]

23. The "Debt Ceiling " is just a political tool used by the GOP ...it is a scam

1. Did we hear of a debt ceiling problem during the Trump administration? No
2. It is an artificial game that has no real bearing on how we spend money.
3. The GOP knows very well that if the US government defaulted on its debt, all hell would break loose and everyone would be sucked down into a terrible hole of economic disaster.
4. The GOP continues to paint the Democratic Party as “tax and spend party“
5. The truth is, the GOP is the “give taxes back to the wealthy and spend a whole lot party”

It’s time to do away with this silly thing, because neither party gives a rats ass about the debt, they will spend the way they wish to spend and the GOP will keep supporting the top 1% because that 1% supports them.