The Debt Limit "Crisis"

There have been a lot of irresponsible statements
recently concerning the debt limit – particularly from
the PotUS and his Treasury Secretary.
Social Security checks will be paid. To not pay them
would energize the elderly to throw the bums out of
office next November – or earlier! It would also expose
the theft of $2.6T from the Social Security Trust Fund.
The last thing that the government should do is default
on external debt. The credit rating agencies have
already given us a negative warning. Default would lead
to much higher interest rates and a debt death spiral.
The Boehner-Reid sell-out would take $1Trillion from
DOD. The other $.2T in cuts is likely to come from
high-value targets of Democrats. The $1.6T will also
come from items that were “negotiated” - I don't favor
this, but if you give me that, then I will let you have
it.
The fact that the House has passed Cut, Cap & Balance
and that it was tabled by the Senate and a veto threatened
by Obama, shows that the Senate and President do not want
to cut spending at all!
If most of the $3.7T budget is currently spent for
defense, Social Security, Medicare, HUD, housing bailouts,
etc., then these programs must have major cuts. The
Democrats are OK with cutting $1T from defense.
Taxes have already been raised at least 3.6% this past
12 months. Although the inflation tax is a hidden tax, it
is a regressive tax which hurts the least able – the poor
and elderly. Although I favor the Fair Tax, I would be in
favor of “flattening” the income tax by getting rid of all
credits and deductions – including favorites like home
mortgage interest and charitable giving.