Yesterday, we noted that if the debt ceiling is not raised, all we need to do is prioritize our payments to reflect our Constitutional and vital demands. Well, some liberal policy think tanks view that as catastrophic. James Pethekoukis of the American Enterprise Institute brings to our attention the following charts from the Bipartisan Policy Center.
They are intimating that we don’t have enough revenue to pay our vital needs, and require more debt to service those needs. Here are a few points to consider.
1) I’d make this trade. Remember that February-March is an anomalous period in which the Treasury always has cash flow problems due to the tax refunds. When you strip out that expense, which would;t apply to other months, we would have enough money for the remaining vital functions.
2) Nobody is saying that we’re going to do this forever. We can adjust our payments for a few months to cover only the vital needs. All we are saying is that we need to pass a balanced budget plan before we raise the limit. As long as Democrat go along with such a plan, we can raise the debt limit one more time to deal with the immediate liabilities incurred, pursuant to previous obligations.