No Dealing On The Debt Ceiling, Part 23

The most mendacious argument the Republicans have been making on the debt ceiling hostage situation is that there is no hostage situation, that is a default scenario will have "minimal" effect on the economy, the day-to-day operations of the federal government, and lives of American citizens.

It's a massive lie, of course.

New analysis by the Bipartisan Policy Center (BPC) which has been shared extensively with members of Congress estimates that the Treasury Department would not be able to pay all its bills and would need to implement an immediate 44 percent cut in federal spending in the event of the debt ceiling is exceeded.

On an annualized basis, the cut in spending alone is a 10 percent cut in GDP, BPC scholar Jay Powell told reporters.

A 44% immediate spending cut, as the money simply wouldn't be there.  A massive 10% GDP cut, the equivalent of an instant recession.  Absolute chaos would reign.

In one scenario, if the administration tries to protect Social Security, Medicare, Medicaid, defense contracts and unemployment insurance, then no military pay, tax refunds, federal civilian pay or welfare payments can be made that month.

Protecting the social safety net including Pell Grants and welfare along with the big entitlement programs still means that no federal workers would be paid in August and no tax refunds will be issued.

In both scenarios the entire budgets of the Justice, Labor, Energy, Interior, Health and Human Services, and Commerce departments are zeroed out, as are the budgets of NASA, EPA, Federal Transit Administration and Federal Highway Administration. 

Millions of Americans would lose their paychecks.  Entire cabinet departments would be shut down. And given the already weak economy on the edge of a second recession, we would be plunged into a complete depression nightmare.

But Republicans are willing to risk a massive hit to the US economy just to "win" politically.  At some point, trying on purpose to destroy the country has to be dealt with.  We used to have a word for it.  None dare use it now.

Perhaps the President, himself a Constitutional Law scholar and professor, will get to test the fourteenth amendment.