IBD: "No, Failure To Raise Debt Ceiling Won't Cause Default"
Investors Business Daily
No, Failure To Raise Debt Ceiling Won’t Cause Default
Posted 10/10/2013 06:11 PM ET
Debt Talks: When Treasury Secretary Jack Lew repeatedly says the government has no choice in paying its bills if the debt ceiling is breached, he must surely know it’s not true. So why say it? In a word, politics.
As the nation’s chief financial officer, the Treasury secretary has an enormous responsibility to shoot straight with the American public about the state of our finances. So does President Obama, for that matter.
But when it comes to the political dispute over raising the debt ceiling from its current $16.7 trillion, Lew unfortunately has not leveled with us.
Opting for political pressure over the truth, he has misinformed and unnecessarily frightened the public to help his boss gain leverage in debt talks with congressional Republicans.
Lew told CNN’s “State of the Union” show last Sunday “there is no option preventing us from being in default if we don’t have the cash to pay our bills.”
No option? In reality, we have more than enough cash to pay our debts. Revenues flowing into federal coffers exceed our debt payments by nearly 12-to-1. Read more…