The Big Lie: DEFAULT

The Big LIE: The federal government stands poised to default…

B.U.L.L.S.H.*.T… pure and unadulterated. Smoke and mirrors meant to deceive.

As seen in the accompanying graphic, the latest estimate of tax revenues for FY 2021 amounts to 3.863 trillion dollars.

True, that falls short of the proposed budget, but no part of mandatory spending is in jeopardy. What is in jeopardy is discretionary spending.

Your rent/mortgage is a mandatory expense. – Neglect it and you might be on the street.

Money for dining out is discretionary spending. – Eat at home.

Things to know:

The first item addressed in the budget is debt service – the interest on the national debt. Interest on the National Debt currently stands at about $378 billion, which is a mandatory expenditure and comes right off the top of tax revenue receipts.

Next comes federal pensions, SS and Medicare payments (so-called entitlements), and (negotiable) defense spending. This is all mandatory spending and is in no danger of going unpaid as long as there are tax revenues being collected.

FACT: We have not paid down the National Debt for years, and years, and years… we just keep adding to it, but the interest is always paid on time. To do otherwise would be categorized as default.

The reticence, by those who still maintain a modicum of fiscal sanity, to raise the debt ceiling in no way jeopardizes mandatory spending. Mandatory spending is all covered by tax revenues. What is in jeopardy, due to the inability to borrow more money because we are bumping up against the current debt ceiling, would be the plans of our Politi-Class to fund much of the pork you and I detest. That is all discretionary spending packed into the budget and is very helpful in buying political favor for our politi-class and CorruptoCrats.

Enough already with the government defaulting. It’s all a crock.

Do I need to say it? Change My Mind!

Published by Paul J DiBartolo

I'm the Most Rational Man in the World.

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