Moving In the Right Direction
It's not always easy to get the media to move towards the truth, but while they find themselves defending gov't misinformation they sometimes have to ask questions. This just happened at CNN, where a story was run "What happens if Congress blows the debt ceiling?"
Upon reading this story, many of you will think it is pro-Administration thinking. And clearly the author himself is writing the story with the intent of making anti-debt ceiling Republicans look bad. But when you read a little deeper an seismic shift has happened in thinking about the debt ceiling.
Back on April 11, NPR's Scott Horsley made the following statements:
There are some things the government can do to buy time, and put off that day of reckoning
And you really don't want to have people start to question whether the full faith and credit of the federal government might not be all that credit-worthy.
We need to raise the debt ceiling just to keep from bouncing the checks that the federal government has already, in effect, written.
But the old rule that if you stop - if you find yourself in a hole, stop digging? That doesn't really apply here. You know, if we just stand still and don't make some structural fixes to the hole, were going to find it caving in all around us.
Clearly NPR is drinking the gov't Kool Aid, but they weren't the only ones. You heard it everywhere. Including the April 10, the NY Times wrote about not raising the debt ceiling saying: "the United States would default on its debt for the first time in its history"
And just 3 days ago on April 26, Matthew E. Zames, a managing director at JPMorgan Chase, wrote an open letter to Tim Gheitner saying "Any delay in making an interest or principal payment by Treasury even for a very short period of time would put the U.S. Treasury and overall financial markets in uncharted territory, and could trigger another catastrophic financial crisis."
Considering Gheitner already believes the above quote, since he has said the same thing, it's clear the letter from Zames is for public consumption, not Gheitner's.
So what is SO special about the CNN story linked above? Well the author had to check the numbers that those opposed to a debt ceiling first, as he wrote: "Indeed, the Treasury Department takes in about $177 billion a month on average. And interest on public debt only costs $19 billion."
Now the author had to do some math and figured out that we COULD pay the debt and we WOULD NOT default. Which drew him to a completely different conclusion than "Catostrophic Destruction of the Economy". He was forced by logic to write: "Since it's (it being the Debt Ceiling not getting raised) never happened before, it's not clear to anyone -- no matter what they say -- how markets, businesses or average Joes would view the country if it has to indefinitely stiff contractors or government programs."
To me this is a Seismic shift in thinking, moving away from a guaranteed catastrophe and toward just not knowing. Now if we could just get NPR to change their tune. As of today they are still writing this crap: " If the debt limit isn't raised by early July, the U.S. will default on its financial obligations for the first time in history."
The problem with doomsday scenarios is if you are wrong you lose all credibility. That's why when they play this card they need to scare the bejesus out of you. Because if you don't follow along and their fraud is exposed they're done.