Chaos and Confusion in the Nation’s Capital

Add uncertainty and fear over the unresolved battle over the level of the national debt, and the result is a toxic political brew that has spilled over into the rest of the country. 

The Nation's Capitol, as photographed from the Newseum.

Should the conflict between the President, Republicans and Democrats in Congress not be resolved by early to mid-August, (August 2^nd is said to be the baseline date for a resolution), the immediate problem becomes who gets paid first, because there would not be enough money to cover all obligations. 

What I dislike so much about this situation is the flippant use of the word ‘default,’ one which has been getting thrown about like so many hand grenades by politicians in an attempt to garner public support for their positions or to intimidate the opposing party into submission to its own point of view.

 

 It is especially unbecoming when the word ‘default’ slips from the lips of the President of the United of the States, a man who occupies the highest office in this country, and a person from whom Americans should be hearing words of reassurance and support at a time of financial disarray, not threatening worry words that conjure up uncertainty, confusion and chaos.

In a recent address to the nation in which the President referred to a GOP plan which he opposed, Mr. Obama said, “. . . If that happens and we default, we would not have enough money to pay all of our bills, bills that include monthly social security checks, veterans benefits and the government contracts that we’ve signed with thousands of businesses.  For the first time in history our country’s AAA credit rating would be downgraded.”

The President is partly correct in that statement, but he is also being very disingenuous. 

That’s because neither he, nor Treasury Secretary Timothy Geithner have as of this writing disclosed and explained to the public the amount of cash inflows into the Treasury for the month of August, as well as the total amount of bills due, followed by a plan about how he, as Chief Executive Officer of this nation, would direct the Treasury Department to prioritize payments, should the debt ceiling issue not be settled by the beginning of August.

Having such a contingency plan in place and putting it before the nation would go a long way towards giving Americans the kind of information that is needed to absorb the full impact of this situation.

The tide may be changing:  As of this morning, there were indications that the Administration may present a payment prioritization plan after the U.S. Stock Market closes later today.

Don’t you think that we all deserve better?  Thanks for reading.  Stay cool

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