The Associated Press in today’s Rockford Register Star article, “No movement from Congress on debt,” continues the media’s misrepresentation of the facts concerning default on government loans, unless Congress raises the debt ceiling or the legal borrowing limit.
The solution would be to simply pay the principal and interest on government debt before paying other federal obligations. Payment of interest on the debt should take priority over all other expenditures. This is Obama’s call, along with Treasury Secretary Geithner.
In fact, if Congress didn’t raise the debt ceiling, the federal government has more than enough money to service the debt and enough revenue left to cover about two-thirds of all government expenditures, including Social Security checks and Medicare.
The same debate occurred last July and even though the figures changed, the concept is still the same; there is enough tax revenue to keep the government running with respect to defaulting on the loans and other government expenditures.
Treasury Secretary Timothy Geithner has criticized this proposal to prioritize interest payments on the nation’s debt and cut spending rather than raise the borrowing limit because the president wants to continue deficit spending.
It would be irresponsible of the president and the Treasury Secretary not to pay the loans as the first priority, as it is for the media to misrepresent the facts on loan default as simply Congress’s fault.