OPINION:
President Biden, Treasury Secretary Yellen and the Democrats confuse and frighten the public by saying that not paying authorized government expenses in full would be a “default” if the debt ceiling isn’t raised to cover these expenses.
Nonsense. Congress and the president can reduce and even eliminate previously authorized government spending at any time so as not to exceed the debt ceiling. It’s in their hands.
But even exceeding the existing debt ceiling — whether for paychecks, defense, federal programs, welfare, Medicare or even Social Security — would not create a “default.” Only not paying a direct U.S. obligation that make up our $32 trillion national public debt (namely, the debt service on outstanding Treasury bonds and notes and their principal at varying maturities) would be a default. That would subject the U.S. to a justifiable credit downgrade.
Mr. Biden has ample revenue available to pay the interest due to avoid such a default, whether other authorized government spending gets paid in full or not. That’s because, unlike our debt service, such spending is not backed by the full faith and credit of the United States. The monthly revenue the government collects always exceeds interest due on the national debt.
For example, April’s revenue was $639 billion with $62 billion in interest due. So if Mr. Biden and Ms. Yellen do not pay interest on the debt, which the 14th Amendment mandates be paid, they would create a true U.S. default knowingly and unnecessarily.
And should Mr. Biden wantonly breach the debt ceiling and fund or finance all the spending that was previously authorized, he would be exceeding his executive powers under the Constitution by incurring unauthorized debt of his sole volition. Either action would violate his sworn duty to uphold the Constitution and would be an impeachable high crime.
Mr. Biden, Ms. Yellen and the Democrats in Congress should stop confusing the public by conflating the constitutionally mandated payment of Treasury obligations with Democratic spending fancies. Just pay the debt service to snuff out all the default talk, and then either chat about the rest with the Republicans or make a partial shutdown of a bloated bureaucracy permanent.
JOHN A. LANZETTA
Sarasota, Florida
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