(Washington, DC 1/9/13) Let's say that on a Monday, you sit down and take a hard look at your finances. Your bills exceed your income, assets are just a feint memory, and there is no relief in sight. Reluctantly, you decide that your only choice is to declare bankruptcy. On Tuesday you say, I think I'll do some shopping before it's all over. You proceed to charge $2,000 on your VISA card for some jewelry and other non essentials. On Wednesday, you get a lawyer and file for bankruptcy.
Guess what? You still owe the $2,000 since the court will conclude that you made the purchases fraudulently. You knew you were filing for bankruptcy and made the charges any way. Even worse, the court may refuse to grant the bankruptcy filing all together as a result of the obvious fraud.
That is exactly what the Republicans in the House of Representatives are doing with their open announcement that they will vote against raising the debt ceiling without their solution to government spending. Since that announcement, has one single deficit hawk stood up and said, We must stop all spending as of this moment since we are proposing to default on those expenditures?
They haven't said any such thing and they won't. That would mean an end of all Federal spending in their districts and states. They are more than happy to incur expenditures that they have no intention of paying anywhere close to on time.
Why is the refusal to raise the debt ceiling such a threat to the good faith and credit of the United States of America? Simple. The majority party in the House is engaged in flat out fraud. That party is spending money as it promises to default on the very amounts spent.
It is fraud, pure and simple. The behavior of key leaders attacks the credit worthiness of the country.
You may say, Look, it's only a temporary default. The loss of confidence still attaches to the action. In fact, the fraud of purchasing after declaring an intention to default is compounded by the grotesque insincerity of the threat. It's enough to make your head spin.
The Republicans in the House of Representatives are involved in a very real, common conspiracy to commit fraud based on their statements and actions. In addition, they're lying to the public since a real declaration default is not just extremely improbable, it is impossible. Sovereign states have the ability to issue currency. That unique ability and asset can't be denied due to a legislative tantrum. Just like individuals and businesses, sovereign states have the very real option to develop a viable plan to work out of a financial crisis
The ever present double standard emerges. It is not OK for us to defraud creditors when we declare bankruptcy but the House can acquire goods and make promises to pay after openly declaring their intention to not pay. Nothing will happen to these politicians as a result of this conspicuous contempt for the law. If it looks like it might, they'll just pass a law to make their crimes legal.
Every day, we suffer the undeserved indignity of being ruled by fools and fraudsters.
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