Obama's Doom Prediction Over Debt Ceiling

Not sure what to make of this - it doesn't match any of the rhetoric coming out from the Obama camp - which is all about manouvering to spin the blame from the fall out of this on Republicans.



An Astounding Turnabout by Obama

Something remarkable occurred in President Obama's press conference on Friday (July 15). It was so astonishing that I was not sure I had heard right, and had to wait until the press conference transcript was posted on the White House website to be sure. But there it is in the sixth paragraph. Here is the quote in full:

Now, what that would require would be some shared sacrifice and a balanced approach that says we're going to make significant cuts in domestic spending. And I have already said I am willing to take down domestic spending to the lowest percentage of our overall economy since Dwight Eisenhower. [Emphasis added.]

I, at least, have never heard this before, but "before" is not really important; President Obama has said it now. Republican negotiators, the Tea Party, indeed the country must hold him to it. This is the entire game, the entire problem, in spending and therefore the debt ceiling question.

Spending has exploded to 25+% of GDP on president Obama's watch, six percentage points above where it "should" be at 19% of GDP! If the president is willing to take spending back to 19% of GDP, which is the level implied by the Eisenhower reference, the game is won.

www.americanthinker.com...

Originally posted by wantsome

Originally posted by Jakes51
Armageddon? Oh, please? Way to pile on the suspense and drama? Are you sure the President is not moonlighting as an entertainer? I can say one thing for certain, that if this cycle of spending more than what comes in continues we will face economic Armageddon. At this very moment in the nation's history, the legislature has the the opportunity to reign in excessive government and hideous spending. For all practical purposes we are already insolvent, but have been borrowing to make up the deference.

Fitch may downgrade US debt unless deal reached by August

The government reached its borrowing limit of US$14.29 billion on May 16. Since then, Treasury Secretary Timothy Geithner has employed what he calls “extraordinary measures” to continue paying the government's bills. They include borrowing from two federal employee pension funds and halting a program under which Treasury issues securities to help state and local governments meet their investment obligations.

The President is kicking and screaming because he knows his spending days are numbered, and will have to tighten the belt of government. The states are already making cuts across the board to stave off fiscal disaster, and what make the federal government any different? I saw another item in the article were it said that senators are working on a measure that gives a President the right to raise the debt limit at their beckoned call?

Obama's Doom Prediction Over Debt Ceiling

Leading senators are working on an emergency 'plan B' which would allow the President to raise the debt ceiling without Congressional approval.

What the heck is that?! He does not have the authority to raise the debt limit, and for any member of the legislature to even consider giving it to the executive branch is very troubling. I would essentially give a President another broad dictatorial power, and would usurp an essential area in the balance of power. There is more to this game than what meets the eyes, and we are seeing a crisis manufactured by the President and his supporters to increase their authority and spending powers. I say let him threaten seniors, people on public aid, pensioners, and all the vulnerable of society. His political career is on pins and needles. He can talk all high and mighty in his various speeches. However when the rubber meets the road and true leadership is needed, he throws fits and likes to play the martyr. I say spare the martyrdom spiel, and come up with proposals of your own! That is something he has not done up to this point.

As for those who would like to claim that if an agreement is not meet before the August deadline, and how it could throw off the recovery? More smoking mirrors, and folks there is no recovery. We have been treading water since 2008. This is not a recession, but a Depression with a capital "D." Eighteen thousand new jobs last month, and they call this a recovery? It is high time to get our own affairs in order instead of the affairs of the world. The opportunity to do so has presented its ugly face, and it is time for the politicians to pay the piper.

edit on 18-7-2011 by Jakes51 because: (no reason given)

"What is that?" It's called the 14th ammendment to the constitution. It gives the president the power to raise the debt limit without congress.

Yes, you are correct and there is a stipulation in the Constitution that says the United States must honor its debt.

Fourteenth Amendment to the United States Constitution

Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.

This item in the Constitution seems very vague? I think more interpretation is needed before this is a get of jail free card for the executive branch, and a measure to control the purse strings at any given moment. So, he invokes this power? Where does it end? This will become a political as well as a fiscal crisis? This matter must be dealt with, and now is a better time than later. Let them spend us into oblivion and turn this place in Argentina, Zimbabwe, or Weimar Germany. When the excrement hits the fans they still have their well stocked underground lairs to reside in. You are correct though, and it would seem the President has the broad power to increase the debt limit with the section 4 of the 14th Amendment.

Originally posted by nakiannunaki


The US is edging closer to the first-ever debt default in its history, with President Barack Obama warning the country faces "Armageddon".

...

uk.news.yahoo.com
(visit the link for the full news article)

Actually the US has defaulted before. Little-known fact. 1979. Obviously we survived it, but it wasn't pretty....

The Day the United States Defaulted on Treasury Bills

...But it’s the only data point we have on a U.S. default. Not surprisingly it shows that even temporary default is a bad idea.

P.S. Some observers believe the United States also defaulted in 1933 when it abrogated the gold clause. The United States made its payments on time in dollars, but eliminated the option to take payment in gold. For a quick overview of this and related issues, see this blog post by Catherine Rampell at the New York Times and the associated comments.

Interesting reading...

i think a U.S. default will be felt around the world. i think it may be a good thing, a chance to start over.

all this "armageddon" talk is setting up for use of the 14th amendment to raise the debt ceiling. obama will tell everyone it had to be done, and hopefully congress will impeach him for it.

The most ridiculous part in my opinion is how the Republicans REFUSE to accept the end of tax breaks for their cronies and biggest supporters while INSISTING on cutting programs that help Americans who are already hanging by a thread.

Oh yes, it's all Obama's fault because the Re(Tard) party will not accept a compromise. /sarcasm

Let the blind hatred continue, ATS.

reply to post by Bob Sholtz


If we really want to start over, throw out the Congress, House and Presidency and start all over again.

Why do you want Obama impeached when the opposing party is holding over-burdened Americans hostage because they don't want to compromise?

reply to post by The Sword


thats what i'm hoping will happen. there isn't an uncorrupt person in politics, and everyone who holds a government position should be banned from ever holding one again.

if obama uses the 14th amendment to raise the debt ceiling, then he will upset the checks and balances system (however flawed it is). congress probably will impeach him if he goes behind their back like that.

i think if you read my other posts, you'd find that i have tempered conservative economic views, but i dislike both the republican and democrat party. tempered in the sense that while i know a purely free-market economy works on paper, it doesn't work as flawlessly in practice. the middle ground is always the best.

i don't hate on obama because hes a democrat, or because hes black. nor do i blame him completely for the state of the economy.

my most recent grievance against him is his refusal to adopt a balanced budget amendment. its common sense, and anything less is setting us up for failure in the future.

btw. neither side wants compromise. obama has already said he will not compromise and will risk the presidency over this, so long as he gets his way. i have to partially applaud the republicans because they are holding out for bigger cuts. getting rid of the deficit is the only way out of this mess. we need steep taxes on corporations that have been getting away without paying taxes through loopholes. (democrats helped set those up too). cut spending, pass a balanced budget amendment, and get out of the middle east.

Just watching some news coverage of this on CNN right now.. And I'm just really getting the feeling that this is a set up, some sort of false flag to further their agendas whatever they may be. That they are purposely not going to raise the debt ceiling to kick start the chaos.. Just the way the media is covering the story, the way it's building up.. The timing is right..

Who knows I could be way off but even if they raise it the problem is only going to get worse.