Economy & Budget

Obama’s Full Faith and Credit Act crock

Here is what Obama wrote, “American families do not get to choose which bills to pay and which ones not to pay, and the United States Congress cannot either without putting the nation into default for the first time in history.”

{mosads}Really? American families choose every day which bills to pay and which ones can wait. Here is what the House bill actually does. It instructs Obama to pay the debt owed from borrowing first in the event that the country hits the debt ceiling and cannot borrow any more. This includes debt owed to the Social Security Trust Fund.

That is all.

So this president would veto legislation that ensures our creditors get paid under the guise that it leads to default? Great sound bite, but it is nothing more than a total crock.

So, yes, my blood was boiling when I read this outrageous whopper. But the pressure gauge nearly exploded when I read the rest of that statement where he wrote, “It would cause the nation to default on Medicare, veterans, national security and many other critical priorities.”

No, it wouldn’t.

The Government Accountability Office wrote in 1985 that the “Secretary of Treasury does have the authority to choose the order in which to pay obligations of the United States.” And, to wit, “Treasury is free to liquidate obligations in any order it finds will best serve the interests of the United States.”

In plain English that even community organizers can understand, your administration makes the payment choices in the event of the United States government being limited in how much it can spend by hitting the debt ceiling.

It is Obama’s Treasury secretary who chooses whether Social Security recipients or Wage and Hour inspectors at the Department of Labor get paid first.

It is Obama’s Treasury secretary who chooses if our foreign creditors or the troops in Afghanistan get paid.

And stunningly, when the last debt-ceiling debate occurred and Obama’s intransigence led us to the brink of having to make those decisions, it was revealed by the inspector general at the Treasury that the administration had no plan for prioritizing the debts.

The House should be praised for trying to deal with the irresponsibility of the Obama administration by instructing it to, in family-budgeting terms, pay the mortgage and figuring out the rest with the 90 percent of the money that comes in each month remaining.

Republicans should have listed other priorities for payment in the bill, knowing full well that Obama would come out with the exact type of blatant political tripe no matter what.

The lesson for House Republicans is that they can depend upon Obama to politically spin everything, even the most responsible action, into a political lie. That’s his legacy.

Rick Manning (@rmanning957) is the vice president of Public Policy for Americans for Limited Government.


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