Debt Dolt Derp Doom

Via Booman, the House GOP response to the specter of sequestration looming over the economy in Friday's depressing jobs reports, and the President's budget offer of again putting chained CPI on the table?

Eric Cantor is promising another brutal debt ceiling battle to force hundreds of billions more in austerity cuts and hurt our credit rating.

On the debt ceiling, Cantor said the House will consider the Full Faith and Credit Act, H.R. 807. This bill, from Rep. Tom McClintock (R-Calif.), would require the government to prioritize interest payments on government debt if the debt ceiling is hit. "I expect the House to consider legislation in this area in the near future," he wrote.

The government has the potential to bump up against the ceiling in May. Earlier this year, Congress passed the No Budget, No Pay Act, which suspended the debt ceiling limit through May 18.

On May 19, the debt ceiling will be equal to the level of debt accumulated by that date, which means Congress will be under pressure to act before then to increase the ceiling again.

But House Republicans have already said they would be looking for a deal to cut a dollar of spending for every dollar increase in the debt ceiling. That sets up a fight with Democrats, who will likely push for a clean extension that does not require spending cuts.

So this will put us right back where we were in 2011.  Even worse, Booman is 100% right on what prioritizing our payments will mean to international markets and credit ratings agencies:  we will be forced to default.

Our credit rating is based on the likelihood that we will pay all our bills on time. Even the suggestion that we might "prioritize" our payments is an invitation to downgrade our credit rating. The last time the House Republicans played around with the debt ceiling our credit rating was downgraded even though we never had a late payment. It was downgraded because it was evident that the House Republicans are insane and might "prioritize" our debt payments in the future, which is exactly what is being discussed now. 

 

So yes, House Republicans are planning on destroying our economy through wrecking our sovereign credit rating.  They hope you will blame Obama for it when they do.  

 

That's the Republican plan for "growth".  Punish Americans until we get rid of the Democrats.