Today we see another debt ceiling plan from legislators: “ Republican lawmakers are preparing to introduce legislation to direct the U.S. Treasury to make interest payments on U.S. bonds first and then prioritize other government outlays in case Congress does not raise the debt ceiling.” But let’s not mince words here; this is a plan to protect the wealthy while playing a game of chicken with the remainder of the country.
First and foremost they are fighting over paying the bills they, the legislators themselves, have already voted to pay. But the real message here is the priority. Stating the intent to pay the interest first and dole out the remainder as they are able simply insures the wealthy investors will get their share while retired vets, homeless, and other programs (investments) for the needy or uneducated get to stand in line. Meanwhile these clowns keep holding the government hostage while arguing over the fictional debt ceiling.
Could this work? Not a chance unless of course your only goal remains the same political power play we’ve seen for the past four years. Even GOP members argue against. “Prioritization is impossible,” said Tony Fratto, who was deputy press secretary for Bush and a spokesman on economic policy. “Is the government really going to be in the position of withholding benefits, salaries, rent, contract payments, etc., in order to pay off Treasury bondholders?” But Fratto even goes further and mentions the political fallout mentioning the word “catastrophe,”
And then there is Keith Hennessey, Bush’s National Economic Council director, who too mentions how bad an idea it is as well as the fact it being an unworkable concept. “Payment prioritization doesn’t stop payments, it just delays them. Then the aggrieved party sues the government, and probably wins, and it turns into a bloody mess,” Hennessey is now an economist at Stanford.
Another crazy plot to delay making a decision with the poorest of Americans absorbing the cost and the wealthy have their interest paid by their political hand puppets.