12.07.2012 in Featured, Politics by Bill Wilson 33

Obama demands unlimited credit, more taxes

ObamaBy Bill Wilson – “If Congress in any way suggests that they’re going to tie negotiations to debt ceiling votes and take us to the brink of default once again as part of a budget negotiation — which, by the way, we had never done in our history until we did it last year — I will not play that game.”

That was Barack Obama’s reaction, speaking to the Business Roundtable, to calls on Capitol Hill that congressional Republicans tie a vote increasing the $16.394 trillion debt ceiling to making tax relief permanent for all Americans, implementing wide-ranging spending cuts, or any other proposal he disagrees with.

In short, there is no room for compromise for Obama.

Instead, chief among the White House’s demands in the so-called fiscal cliff “negotiations” — besides there being higher income, capital gains, and dividends taxes on the top two brackets, which, of course, are non-negotiable — would be the automatic increase of the national debt ceiling for perpetuity.

In a Dec. 2 interview with NBC’s Meet the Press, U.S. Treasury Secretary Timothy Geithner introduced the idea of eliminating the debt ceiling altogether “to make sure that the country is not left at risk of periodic threats of default.”

Geithner leaves out the part where if the Treasury prioritized payments of principal and interest to our nation’s creditors, and refinanced existing debt up to the limit, there would be no default even if the debt ceiling was never increased again.

But prioritizing is something the department refuses to do, according to a shocking Inspector General’s report released in this past summer: “While Congress enacted these expenditures, it did not prioritize them, nor did it direct the President or the Treasury to pay some expenses and not pay others [should the debt ceiling be reached]. As a result, Treasury officials determined that there is no fair or sensible way to pick and choose among the many bills that come due every day. Furthermore, because Congress has never provided guidance to the contrary, Treasury’s systems are designed to make each payment in the order it comes due.”

The Treasury’s only apparent plan was to postpone payments to everyone in lieu of a resolution. In other words, to hold our creditors hostage and to effectively default until Congress caved in to the White House’s demands to increase the debt limit.

Now, the Obama Administration wants to take away Congress’ power altogether.

On the Treasury’s website, Assistant Secretary for Public Affairs Jenni LeCompte further outlined the proposal, promising it would “remove politics from future debt limit debates.”

What she really means is abrogating Congress’ constitutional Article 1, Section 8 power to borrow money on the credit of the U.S. to the executive, something that was not lost on South Carolina Republican Sen. Lindsey Graham.

Responding to Geithner’s proposal, Graham said, “Suggesting that we never have a say about raising the debt limit again, that it be raised in perpetuity, when it’s a constitutional requirement that Congress only can borrow money, shows to me that [Obama is] trying to create a situation for unlimited power.”

And that is the problem. If Congress were to adopt the Obama-Geithner proposal, removing such an important check on executive power, it would be an outright dissolution of representative government, in effect eroding the Article 4, Section 4 guarantee of a republican form of government

The debt ceiling has its origins in World War I, when as noted by Euro Pacific Capital CEO Peter Schiff, “The government passed an amendment to the charter to allow the Fed to purchase Treasury Bonds. Fearing (correctly) that this would create a mechanism for perpetual debt expansion, conservative lawmakers insisted that the amendment include a ‘debt ceiling’ provision that would cap the amount that the government could borrow.”

But, over the years, Schiff writes that the provision has become “meaningless,” because Congress has never, ever used it to restrain the expansion of the federal government.

That may be starting to change, however. Sen. Graham warned Obama that Republicans are “not going to raise the debt ceiling ever again until we address what got us in debt, and that’s government spending and entitlement growth.”

We sincerely hope he means it. The debt ceiling was last raised in Aug. 2011 by $2.1 trillion, the largest such increase ever, and the Obama Administration has burnt through all of that in just 16 months.  By 2022, the national debt will soar to $26 trillion under the current baseline. By 2042, it could be as large as $100 trillion.

Which is why Obama wants an unlimited credit card. Instead, congressional Republicans should freeze his account and demand permanent tax relief, a balanced budget, and entitlement reform — before it is too late and the debt is too large to be refinanced, let alone repaid.

Bill Wilson is the President of Americans for Limited Government. You can follow Bill on Twitter at @BillWilsonALG.

This article has 33 comments
  • Jim Falato 07.12.2012 3:12 PM

    The House submits Budgets and approves Borrowing ACCORDING TO OUR CONSTITUTION! To have the House forego its Borrowing Powers would need the passage of an AMENDMENT – not just a Bill!

  • bernie 08.12.2012 11:41 PM

    Just who in the hel_ does obummer really think he is? Giving ORDERS like some dictator, what happened to bi-partisianship. Doesn’t he WORK and get paid by the PEOPLE not just the ones that put his as_ in office. He hasn’t done a damn thing for us except put the USA in a bigger hole and a laughing stock to the middle east. The GOP had better grow a pair and stand their ground, let obummer take the fall for once, he got away with MURDER (Benghazi) let him face this CLIFF on his own.

  • Terry C 10.12.2012 10:56 AM

    He thinks he is a dictator or the King and that he can do what he wants to.

  • FloridaJim 10.12.2012 11:15 AM

    Does anyone believe Barrack Hussein Obama , who has never submitted a budget as President and grows our debt at $4,300,000,000 per day up from $3,600,000,000 3 months ago along with Harry Reid, chuck Schumer and dick Durbin would be any more responsible with an unlimited checkbook? Any one who believes that should leave the country and go immediately to Greece where you will be welcomed.

  • ary 10.12.2012 11:29 AM

    Just say NO!
    No excuses, no explanations.
    He’s a dictator, imposing and “entitled” to his way or the highway by position, power and international backing. He thinks he “should” have everything he wants when he wants it and throws tantrums and makes demands like a 2 year old, and citizens act like incompetent “parents”.
    Time to be a health parent to his personality-disordered “child”! He needs LIMITS!
    The latest “campaign” about negotiating a deal with the devil is: “We have to do this NOW!”
    Last time we heard that battle cry from Obama?
    When he and Nancy and Harry got us enslaved to Obamacare by convincing people of the urgency of “we have to do it now — we can only find out what’s in it after we pass it!”
    Idiots! If there was urgency about doing it now, they had 4 years to do it. NOW, Obama has the “flexibility” to do as he pleases if given unlimited power and unlimited access to the taxpayer wallets.
    There’s no sense of urgency – do not give this fraudulent, lawbreaking president the permanent ability to have a blank check — he’ll only send more weapons and tanks to arm radical Anti-American governments and executively order more revocations of any rights or freedoms Americans have under the Constitution.

  • Ardell Nagle 10.12.2012 12:11 PM

    We don’t need give Obama a bigger credit card!!

  • bewell 10.12.2012 12:31 PM

    Perhaps we, the voters, are allowing him to act this way. Is WE DON’T LIKE HIS DICTATORIAL, EXECUTIVE ORDER way of governing, we, the citizens, need to push back and tell him he is out of order.

  • Bewell 10.12.2012 12:33 PM

    BINGO! You said it.

  • patriot 10.12.2012 1:10 PM

    I demand that he be charged with Treason because he is doing every thing he can to distroy the Constitution that he took the oath to uphold against all enemies foreign and demestic and he is the demestic

  • Sandy Pfaff 10.12.2012 1:19 PM

    Which we never did before in history….hmmmmm….maybe it’s because we never had an enemy of the state as a sitting president before? He is NOT the RULER of this country he is the leader….a big difference because we have checks and balances which means we do NOT have to follow if we feel where he is taking us is the wrong direction.

  • Robert Blum 10.12.2012 1:56 PM

    Perhaps Barack and Michelle also support Malia and Sasha fundamentally transforming to be indentured servants (due to the perpetual growth of the US debt).

  • John Detwiler 10.12.2012 2:05 PM

    What is next? He has already violated the Constitution several times. Beside the congress cannot give Obama the power to set any financial limits. That power is limited to the Congress by the Constitution. But that brings up another point. Everybody is accepting the fact that Obama Care is due, Obama care is also unconstitutional. It is a tax, the SCOTUS ruled this. Well Obama care was scripted and passed into law by the Senate who cannot raise a tax or pass any bill without it first being written by the House. And the House had nothing to do with it. Therefore it is unconstitutional and unlawful.

  • j. 10.12.2012 2:51 PM

    What do you expect ?? barry has been living off the public dole all his life and has never had to pay for a thing. So now that he has the keys to the welfare office he thinks it is ghetto fab to spend it all and let someone else pay for it.

  • ssilv48 10.12.2012 2:51 PM

    He is trying to break our system by spending so much money, that we are broke. This is what happens when an undocumented kenyan worker is put in charge of another country.

  • mocha10 10.12.2012 3:36 PM

    I demand a Balanced Budget! I demand you follow the Constitution Mr. Pres. Better yet, time to IMPEACH you and find someone who knows what they are doing and won’t lie to the American people. Let’s start with C-SPAN?

  • Mike 10.12.2012 3:37 PM

    Giving Obama this power would be the last step in creating the communist country that he and the rest of the liberals want to turn America into. The constitution would be destroyed and Obama would become the dictator he wants to be.

  • JoAnn Warner 10.12.2012 4:01 PM

    I never anticipated our country would ever become so wreckless.I never dreamed we would ever have a president take over our country, and turn it into something I would not recognize.It is very disturbing.

  • Impressproducts Bedard 10.12.2012 4:20 PM

    He is really trying to make himself king

  • Dean 10.12.2012 4:25 PM

    Obama, f888 off. You aren’t even a legal citizen. YOU ARE AN IMPOSTER,

  • lonestarlady 10.12.2012 4:29 PM

    Boehner needs to go, but if he gives in to BHO on this it will almost be assured that he will no longer be Speaker.

  • r 10.12.2012 4:51 PM

    Oboma is out of his mind, if any is left after all the pot smoking. This guy is a true socialist, muslim that is destroying this country and the democrats are letting him do it, what dumb people libs are.

  • Dean 10.12.2012 5:06 PM

    What is next? INPEACHMENT, I hope!

  • James Tibbs 10.12.2012 5:10 PM

    Let him eat cake. If I hear about one republican giving in to Oblunder and his Ilk, if I can vote against them.

  • Sara Johansen 10.12.2012 6:43 PM

    I REALLY do not like this sorry piece of humanity….he treats the American taxpayers like his personal piggy bank!

  • Sara Johansen 10.12.2012 6:44 PM

    what he has is delusions of grandeur! an ASS!

  • TMT 10.12.2012 7:43 PM

    If he wants more money let him put it up!

  • pduffy 10.12.2012 9:46 PM

    Only one big problem with the ‘proposal’ to give Barry Sorobarka the power to tax unlimited (which is raising the debt unlimited): the U.S. Constitution requires a constitutional amendment and a 2/3rds vote by the states to change this power to the executive branch. But who’s going to stop them from violating the Constitution AGAIN? Certainly not the courts, so what’s left other than pitchforks and torches?

  • Mad Mike 11.12.2012 9:31 AM

    What Obama is demanding is to be made the first legal “Dictator of America”! To be above the law, above the constitution, unaccountable to the american people or anyone but himself. Obama is publicly admitting he is not an American, nor a patroit, but rather, a tyrant, steeped in anti-american beliefs of Communisum, Islamic superiority to the west, and hatred of white society. Amazingly, he has “duped” white, liberals and democrats, supporting this insane, hateful, agenda for america. Their are destroying our country as we are now forced to stand by and watch them do it!

  • Mad Mike 11.12.2012 9:35 AM

    Obama has intentionally left “no room for compromise”. Only room for his impeachment, or, civil war and then his impeachment.

  • Jerry Reames 11.12.2012 11:27 AM

    tell that ass hole to go to hell

  • mjazzguitar 11.12.2012 10:21 PM

    Are there no random drug tests for presidents? What about psychiatric evaluations?

  • bernie 11.12.2012 11:02 PM

    If what you say is true then why hasn’t anyone in the House or for that matter in any govt body do anything regarding this POS we have. What if we the people refuse to pay or buy OBAMACARE when it comes due. Don’t understand WHY oh WHY no one can do anything, it’s just unbeliveable.

  • Cal Goggans 12.12.2012 4:51 PM

    Can’t everyone see what is happening. just look at egypt and what their newly (barely) elected leader is doing. obama is only the second leader that will follow that path. he was placed here by the islamic terrorosts. that is how they plan to takeover this and several other countries. Check out daniel and revelations it spells it all out perfectly

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