Rappahannock News

The feds won’t default on the national debt. Stop worrying


Iamsick of political posturing, on the part of both parties (but, as usual, Democrats are better at complainin­g). We are not going to “default on the National Debt”; calm down the rhetoric.

Current news reports claim that the United States borrows 30% of every dollar it spends. My income checks reliably deduct for State/ Local/FISA taxes every month, and that applied to all tax-paying citizens and businesses creates the income stream that covers the other 70%.

If there is no further borrowing available (the National Debt Limit is not extended by Congress), nothing happens to that income stream. The Executive Branch will have to “execute” the dollars it receives, in a prioritize­d fashion (that the hucksters will not appreciate). If my income were cut next month, I would not immediatel­y cease paying the mortgage; I would quit watching movies, maybe not get a new iphone or car yet, and shop more carefully for groceries. On a National level, that means that the interest and principal on our debt will be paid, Grandma will still get her Social Security check, and the military will still get paid.

When we have allocated the higher priority of 70% of our planned expenditur­es, we would have to stop spending money we do not have and now cannot borrow. So when the Georgia contractor­s ask for checks to start the Michelle Obama Hiking Trail included in the last porkulus bill, they may get told to wait a few months.

We are not going to “default on the National Debt”, and you should consider very critically the further statements of anyone who says that is a possibilit­y.

R K Amissville

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