Power Mad Obama Offers Two Choices: Unconditional Surrender Or Default

Obama-Sleeping

Barack Obama is warning that if he does not get everything that he wants that he will force the U.S. government into a devastating debt default which will cripple the entire global economy.  In essence, Obama has become so power mad that he is actually willing to take the entire planet hostage in order to achieve his goals.  A lot of people are blaming the government shutdown on the Republicans, but they have already voted to fund the entire government except for Obamacare.  The U.S. Constitution requires that all spending bills originate in the House of Representatives, and the House did their duty by passing a spending bill.  If the Senate or the President do not like the bill that the House has passed, then negotiations need to take place.  That is how our system works.  And the weak-kneed Republicans have already indicated that they are willing to give up virtually all of their prior demands.  In fact, if Obama offered all of them 20 dollar gift certificates to Denny’s to end this crisis they would probably jump at that deal.  But that is not good enough for Obama.  He has made it clear that he will settle for nothing less than the complete and unconditional surrender of the Republican Party.

Why is Obama doing this?  Why is Obama willing to bring the country to the brink of financial disaster?

It isn’t hard to figure out.  Just check out what one senior Obama administration official said last week

“We are winning…. It doesn’t really matter to us” how long the shutdown lasts “because what matters is the end result,” a senior Obama Administration official told the Wall Street Journal last week.

This is all about a political victory and crushing the Republicans.  Obama doesn’t really care how long this crisis lasts because he believes that he is getting the end result that he wants.

According to Obama, the Republican Party is just supposed to roll over and give him the exact spending bill that he wants and also give him another trillion dollar increase in the debt limit.

If the Republicans do not give him that, he is willing to plunge us into financial oblivion.

The funny thing is that most Americans do not want the debt limit increased.  According to one new poll, 58 percent of all Americans do not even want the debt ceiling to be increased by a single penny.

And recent polls show that Americans are against Obamacare by an average margin of about 10 percent.

But the pathetic Republican Party is actually willing to hand Obama a trillion dollar debt ceiling increase and fully fund Obamacare if Obama will at least give them something.

Unfortunately, Obama won’t even give them the time of day.

So don’t blame the Republicans for what is happening.  The Republicans have already compromised themselves to the point of utter disgrace.  If Obama had been willing to even compromise a couple of inches this entire crisis would already be over.

And nobody should be claiming that the Republicans won’t vote to end this shutdown.  They have already voted to end it.  The following is from a recent article by Thomas Sowell

There is really nothing complicated about the facts. The Republican-controlled House of Representatives voted all the money required to keep all government activities going — except for ObamaCare.

This is not a matter of opinion. You can check the Congressional Record.

As for the House of Representatives’ right to grant or withhold money, that is not a matter of opinion either. You can check the Constitution of the United States. All spending bills must originate in the House of Representatives, which means that Congressmen there have a right to decide whether or not they want to spend money on a particular government activity.

Whether ObamaCare is good, bad or indifferent is a matter of opinion. But it is a matter of fact that members of the House of Representatives have a right to make spending decisions based on their opinion.

Once again, the Republicans have already indicated that they are willing to fund Obamacare.  They just want Obama to throw them a bone.

And Obama will not do it.

So either the Republicans are going to cave in completely (a very real possibility) or we are going to pass the “debt ceiling deadline”.

What happens then?

Well, we would have more of a “real government shutdown” than thefake shutdown that we are having right now.

Once the federal government cannot borrow any more money, it will only be able to spend what it actually has on hand.  That means that a lot more government functions will have to shut down.

Money will still be coming in to the government, but it won’t be enough to fund everything.  According to the Wall Street Journal, the federal government will still have enough money to pay interest on the debt, make Social Security payments, make Medicare payments, make Medicaid payments, provide food stamp benefits and pay the military if they cut almost everything else out.

The other day, I suggested that the federal government could potentially start defaulting on interest payments on the debt as early as November.  But that would only happen if the federal government manages their money foolishly.

If the federal government managed their money smartly and saved cash for the interest payments as they came due, they would not have to miss any.

But when was the last time the federal government ever did anything “smartly”?

For the sake of argument, however, let’s assume that the federal government can manage money wisely and can save up enough cash ahead of time for large interest payments as they come due.

If that could somehow be managed, then according to Paul Mampillythe government would never need to actually default…

The U.S. Treasury always has money coming into its accounts. So its always got some amount of cash that it can use to pay interest on bonds. That’s especially true right now because the government is partially shutdown and there’s no cash going out from its accounts.

In fact, when you look at it the U.S. Treasury should simply have no trouble making interest payments on bonds that it has issued.

And there’s no restriction on the U.S. Treasury prioritizing interest payments. Why?

The obligation to pay interest is set by the 1917 Second Liberty Bond Act and laws that commanded the Treasury to pay interest on the debt. You can look this up in section 3123 of Title 31 of the U.S. Code and section 4 of the 14th Amendment of the Constitution and in Supreme Court precedent (Perry v. United States). It’s all there in black and white.

So the only possible way the U.S. defaults on its debt is if Barack Obama, President of the United States, instructs his Treasury secretary Jack Lew to default on the debt.

And according to the Washington Post, Moody’s has just issued a memo that also indicates that the federal government should be able to make all interest payments even if the debt limit is not increased…

In a memo being circulated on Capitol Hill Wednesday, Moody’s Investors Service offers “answers to frequently asked questions” about the government shutdown, now in its second week, and the federal debt limit. President Obama has said that, unless Congress acts to raise the $16.7 trillion limit by next Thursday, the nation will be at risk of default.

Not so, Moody’s says in the memo dated Oct. 7.

“We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact,” the memo says. “The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasury’s extraordinary measures to raise funds) and a default.”

Of course the federal government would have to stop throwing money around like a drunk gambler at a casino in Las Vegas in order for this to work.

On the very first day of the government shutdown, the feds gave $445 million to the Corporation for Public Broadcasting.  Apparently Elmo is considered to be “essential personnel” by the Obama administration.

And according to CNS News, the U.S. Army has committed more than $47,000 to buy a mechanical bull during this “shutdown”…

The government shutdown may be keeping furloughed federal workers at home, but on Monday the U.S. Army contracted to buy a mechanical bull.

The $47,174 contract was awarded on Oct. 7 to Mechanical Bull Sales Inc. of State College, Penn.

So needless to say, there is some serious doubt about whether the federal government would be able to manage their money effectively in the event that the debt ceiling deadline passes.

And if the U.S. did start defaulting on debt payments, it would be absolutely disastrous for the global economy as I discussed in aprevious article

“A U.S. debt default would cause stocks to crash, would cause bonds to crash, would cause interest rates to soar wildly out of control, would cause a massive credit crunch, and would cause a derivatives panic that would be absolutely unprecedented.  And that would just be for starters.”

Other nations that we depend upon to lend us money would stop lending to us and would start dumping U.S. debt instead.

Could you imagine what would happen if China started dumping a large portion of the 1.3 trillion dollars in U.S. debt that they are holding?

It would be a total nightmare.  The collapse of Lehman Brothers would pale in comparison.

And already some banks are stuffing their ATM machines with extra cash just in case the general public starts to panic.

But none of this has to happen.

If Obama decides to negotiate with the Republicans, this crisis will likely end very rapidly.

If not, and we pass the “debt ceiling deadline”, the federal government will still have enough money to make interest payments on the debt as long as they manage their money correctly.

Unfortunately, Obama seems far more interested in playing political games than he is in solving our problems.

In fact, Park Service rangers have been ordered to “make life as difficult for people as we can” during this government shutdown.  Obama has apparently decided to punish the American people in order to get leverage on the Republicans.  Just check out the following example from a new Weekly Standard article

There’s a cute little historic site just outside of the capital in McLean, Virginia, called the Claude Moore Colonial Farm. They do historical reenactments, and once upon a time the National Park Service helped run the place. But in 1980, the NPS cut the farm out of its budget. A group of private citizens set up an endowment to take care of the farm’s expenses. Ever since, the site has operated independently through a combination of private donations and volunteer workers.

The Park Service told Claude Moore Colonial Farm to shut down.

The farm’s administrators appealed this directive​—​they explained that the Park Service doesn’t actuallydo anything for the historic site. The folks at the NPS were unmoved. And so, last week, the National Park Service found the scratch to send officers to the park to forcibly remove both volunteer workers and visitors.

Think about that for a minute. The Park Service, which is supposed to serve the public by administering parks, is now in the business of forcing parks they don’t administer to close. As Homer Simpson famously asked, did we lose a war?

The hypocrisy that Obama has demonstrated during this “government shutdown” has been astounding.

He has barricaded open air war memorials to keep military veterans from visiting them, but he temporarily reopened the National Mall so that a huge pro-immigration rally that would benefit him politically could be held.

He has continued to fund al-Qaeda rebels in Syria that are trying to overthrow the Syrian government, but he has been withholding death benefits from families of fallen U.S. soldiers.

The conduct of the Obama administration during this shutdown has been so egregious that is hard to put into words.  Obama has chosen topurposely harm the American people in order to score political points.

But this is how our politicians view us these days.  As Monty Pelerinrecently explained, most of our politicians have absolutely no problem with exploiting us for their own purposes…

The concept of political service has been replaced by that of masked exploitation. The public is no longer viewed as clients or constituents to be served. Instead they have become political prey. Politicians see the public as a collection of wallets and votes, fair game to be hunted as the means to expand power and wealth. Constituents are now the Soylent Green of the political food chain.

The political class assumes the public exists to serve them, not the other way around. Public participation beyond the lightening of wallets or the provision of votes is unwelcome. It is considered “interference” that must be deterred by the ruling class.

The political class is now a huge, voracious parasite. Like the plant in the Little Shop of Horrors, its needs have grown to the point where it threatens anything productive. Its needs now exceed the willingness for continued sacrifice on the part of the productive. The parasite threatens the very existence of the host.

The political Ponzi scheme of tax, borrow and spend has reached its limit. Either it will die when citizens turn on it or it will kill the productive, ensuring its own destruction.

It perishes in the end. Whether it takes civilization with it is the bigger question.

Is there anyone out there that still does not believe that our system is broken?

Hopefully cooler heads will prevail and power mad Obama will decide to toss the Republicans a few crumbs and this crisis will be resolved.

Because if this crisis is not resolved soon, it could have consequences that are far beyond what any of us could possibly imagine.

Will The Stock Market Crash In 27 Days?

This little-known market timing indicator just gave an unmistakable signal of where the market is headed next!

Click Here to See If The Market Will Crash In 27 Days!



  • Daniel Less

    I agree completely with Aussie Mick, O’Bummer is either the worst (dumbest) President in American history, but it’s more likely he’s a power hungry sociopath hellbent on destroying the USA, and it’s tragic that the American people don’t have the balls to throw both him and his friends out of the White House. When are you going to wake up to reality in America? Don’t you realize how dangerous this man is, both to your own country, and the rest of the world? Throw him out before it’s to late, and before he initiates WW III for God sakes!

    Daniel Less

  • proudamerican

    neworchard There is nothing that can be compared to the Obamacare. It is holding back the economy and costing working people jobs. If you want to close the gap between the rich and the poor help get the poor independent from the government. Democrats want to keep people enslaved to the government so they can control them and the poor will keep voting for dems that promise more and more hand outs. The way to close the gap between the rich and poor is not hand outs. Help bring the poor up to the rich by working for what they get not not try to take everything from the rich to give to the poor. Sooner than later you are going to run out of other people’s money to hand out for votes. You can not make the poor rich by making the rich pour. You talk like the rich are bad people but they are the ones that are giving the poor jobs.
    If obamacare is settled law then why can obama give waviers to the people that donate to him and not others. Constitutionally laws are to apply equally to all and not have carve outs for the well connected (to the dem party). Obama can change it at will but the House has to keep their hands off. If this law is so great lets make it apply equally to all Americans. I hope the dems run hillary she has enough baggage that she can’t win. I don’t think you are going to like the 2014 & 2016 elections.

  • guberguder

    When will they start drooling, groveling and crying. Their big fat bellies need to be flattened. They are too full!!

  • neworchard

    Proudamerican, I understand my analogy wasn’t as serious to you as the debacle you perceive the ACA to be. So substitute something else of great value to you. Let’s say a Republican Congress passed a privitization of social security law and a Democratic House tried to stop it by adding amendments to an appropriations bill. Pick an issue you are passionate about. The point remains. Putting extraneous conditions on an appropriations bill in order to shut down the government if the other side doesn’t cave on those conditions is not a Constitutionally responsible way to change a law that legislators don’t like. The way to do it is to vote it down or up separately. This happened in 2010. Like it or not, we now have the ACA. Don’t like it? Elect a Senate in 2014 and a President in 2016 that will amend it or abolish it. Or pass some mitigation of its faults in the House that a bipartisan Senate will pass and the President will sign. Like it or not, the ACA is settled and funded law. But settled laws can get changed. Think emancipation of the slaves, woman’s suffrage, the civil rights act–they were gamechangers. Keep working at your end to destroy an extension of health care to the poor, the working poor, those with pre-existing conditions and I’ll keep working at closing the unconscienable gap between rich and poor in this nation. That’s politics. And it’s our responsibility as citizens. I hope you’ll be ready to accept Hillary Clinton as our next President because even Bill O’Reilly said today that’s where we are heading if Republicans don’t give up on these hostage-taking, gun-to-the-head tactics.

  • proudamerican

    neworchard this makes no sense. you are comparing apples to oranges. The keystone pipe line will be private money. The pipeline will not be stealing money from working to give to deadbeats. The pipeline will not be destroying the greatest health care system in the world with the best doctors and researchers. To get Obamacare passed obama had to buy off his own party. Remember the corn huskers kick back and other sweet deals mad to his own party members. If This is such a great law why won’t Sleezy Harry let the Senate go on record supporting it by voting on the House bills to defund obamacare. He knows that they would have to answer to the American people in the next election.

  • Stewart Ransom

    “It is a shame that such a person as OBAMA is elected as President.”
    Yes it’s so terrible that in our system of govt the majority rules. We should get rid of democracy and have mob rule which is what the poster cca wants.
    A few crumbs. Has anyone noticed that the budget that we are trying to get passed via the cr is the Ryan budget that lost the election. Also that it includes the sequestration in it as well. The republicans already have their budget but they want more and the President has finally put his foot down and said no to govt by blackmail. What would Reagan or bush do in this same situation.
    You republicans are hypocrites and the polls are showing you will have a hard time keeping the house next year. These are the Fox News polls so they must be right. The Republican Party is at the lowest it has ever been in the last 100 years. You can rant and foam at the mouth but your reign is about to come to an end and you are blinded by your racist hatred of this president. It will be your downfall

  • g13man

    If their was a budget , there would not be a need for a debt ceiling or raising it ! ! ! !
    All the politicians have done is passed a SPENDING bill …

  • AES2

    Actually both sides have demanded unconditional surrender and neither cares how bad their tantrums worthy of four-year-olds hurt the country as long as they can preen to their bases that are moving ever farther to the left and to the right. For those who don’t care about default wait till the dollar is no longer the world’s reserve currency.

  • neworchard

    Here’s
    a thought to consider. Suppose the shoe
    were on the other foot. Let’s say the
    issue was the Keystone pipeline strongly supported by Republicans. And let’s pretend that a Republican
    government—House, Senate and President—had voted to go ahead on this pipeline,
    but now confronted a problem. While they
    retained the Presidency and a Senate majority in the last election, the
    Democrats gained a majority in the House and a small, but very vocal and
    intransigent minority of Dems in this new House are adamant that oil will never
    flow through that pipeline. They get their cronies in the House to pass 92
    bills in the House, each seeking to defund the pipeline, but the Republican
    Senate will have none of it. Frustrated
    and infuriated, but undaunted, these gestap environmentalist conceive a
    brilliant ploy: They will attach an
    amendment to the appropriations bill which is designed to keep the government going
    for another year. The amendment will defund
    the Commerce Department’s interstate commerce inspectors who are required by
    law to sign off on any interstate construction before it can begin
    operating. Without Commerce approval,
    the pipeline is dead in the crude, so to speak.
    The Senate rejects the amendment
    which has nothing to do with the appropriations bill knowing, also, that the
    construction of the pipeline has already been funded by law. The Republican President vows he will veto such an
    appropriation bill unless it is clean and stripped of this extraneous
    amendment. But the Dems in the House
    stand firm. They are certain that this
    pipeline, once operating, will destroy not only the environment of the (blue) states
    it crosses, but eventually undo the ecosystem of the entire country wreaking
    untold damage, so they are holding the line.
    Republicans are furious that the Dems would hold up the essential energy
    production promised by this pipeline.
    They predict an ominous ballooning of our energy dependence on the
    middle east if the pipeline, already approved by Congress, is stopped. But they are even more incensed that these
    Democrats would hold the country hostage to their intent to undo this approved endeavor, willing instead to send tens of thousands of federal workers home without pay and shut down the government. Both sides are implacable. The Republicans say, “We will not allow you
    to undo this project by obstructionism and blackmail.” The Democrats thumb their nose in return and
    blame the Republican President for shutting down the government by his
    unwillingness to accept the appropriations bill so long as the
    kill-the-pipeline amendment is a part of it.
    In this scenario, where would you stand?
    I bet I know.

  • Aussie Mick

    You still don’t get it…Obama’s job is to destroy America. I think he is doing a great job. Muslim / Commo / Obumma…hates whitey…hates blackies who are not muslims…hates anyone who is not a communist..regardless of colour…whatever it takes to destroy the USA, and the rest of the world…he is up for the job. Grow some balls and get rid of him…impeach now..time is very short.

  • victorbarney

    Hello? Republicans have NO POWER OVER ANYTHING OR ANYBODY, NOT EVEN THEMSELVES! YOU MARXISTS, ALONG WITH YOUR “GATHERER’S(PRIMARILY WOMEN & BLACKS) or our 74%er’s, RULE with an IRON HAND…FOR NOW, that is…WATCH!

  • Slav2012

    The message is starting to be heard…crack the power structure of the progressives now while it can be done without violence or risk slavery at the hands of Democrat goons and collaborators …..pretty simple choice

  • Jim

    You’re an idiot…..the facts are, Obama agreed to the Republican budget back in July….Boenner then re-nigged when his Tea Party fools forced him to insist on defunding Obamacare also…..So the Democrats agreed to cut billions more than they wanted, but that wasn’t good enough for the greedy Tea Party…..So get your facts right….Republicans have never agreed to give Obama anything in 5 years….they are the ones that won’t compromise…..they keep saying they want a discussion….but notice they never say compromise….

  • Amwakeup

    Lets go for it,dont blink. He has made it so bad for americans ,we might not even feel the extra pain. And the money is in the taxes that come in to pay the debt,Dont blink! Dont Blink!

  • JohnDille

    Just more natterings of a Rupert Murdock tool!!! Murdock already controls 70% of the media in Australia, is very powerful in England, and via Fox and other holdings here in the US, Murdock is surely the single most powerful media man in America! In the name of freedom and liberty, his minions lie and distort the truth unceasingly, and his many tools… such as the writer of the piece above… help win more freedoms and liberties… but only for the right wing billionaires who WILL use their freedoms and liberties to destroy the freedoms and liberties of everyone else, especially those who disagree with them
    THE TOOL WRITES…. Barack Obama is warning that if he does not get everything that he wants that he will force the U.S. government into a devastating debt default which will cripple the entire global economy. In essence, Obama has become so power mad that he is actually willing to take the entire planet hostage in order to achieve his goals! IF OBAMA WERE TO NEGOTIATE WITH TERRORISTS AT THE POINT OF A GUN, THE FAR RIGHT WOULD BE OUTRAGED, AND DEMAND HIS IMPEACHMENT!!! So what is different about Obama negotiating with a bunch of POWER MAD REPUBLICANS who want to overthrow the government unless their DEMANDS are met??? As Obama has said repeatedly… PASS A CLEAN BUDGET AND RAISE THE DEBT CEILING, AND THEN WE WILL NEGOTIATE! It is the far right members of the House of Representatives who are power mad!!! They offer NOTHING, but demand everything, or they will shut down the government, and create yet another right wing gnerated economic crisis that will have POTENTIALLY VERY HARMFUL AND EVEN DANGEROUS repercussions all over the world!!! THIS THREAT MAKES THE RIGHT WING REPUBLICANS FAR MORE DANGEROUS THAN ALMOST ANY ENEMY THE UNITED STATES FACES IN THE WORLD TODAY!!! Perhaps Obama should become a REAL dictator …like right wingers constantly accuse him of being….and have all those right wingers arrested and charged with treason!!! Such charges would not be without merit!

  • CCA

    It is a shame that such a person as OBAMA is elected as President.
    The election was a fraud. I hope the government shuts down.

  • Eileen

    Let the government default. The Republicans have nothing to lose by standing their ground. It is about time Americans stopped consuming and start producing. Yes, it will be painful, even for me as I may lose my retirement accounts; be that as it may, after 6 months or so, the country will be financially sound. Out of the weak kneed Republican Party will come a stronger one that may be responsive to public indifference about their neighbor’s bed mate.

  • victorbarney

    Well Anglo-Saxon Men & Women; welcome to Adam’s world even before the first murderer Cain was even born! NO! YOU haven’t seen anything yet because Revelation chapters 7 &11 are about to knock upon your door! I’m just reading scripture, which is Hebrew inspired, not Greek, even saying just that twice in Greek! Yes folks, it always has been and always will be about Jerusalem, NOT Rome! Watch, if able…