Saturday, October 5, 2013

Government Default

Open Email to House Speaker Boehner:

Dear Speaker Boehner,
    Congratulations! You are making excellent progress on your strategy for piecemeal funding of government operations!
    The shutdown of the World War II Veterans Memorial in Washington by Obama was a major blunder. There is little doubt that Obama wishes he would never have done that, because it has made him look really bad. You have appealed to the public with your bill to fund national parks, including that Memorial, which has a favorable public reaction.
    Your latest bill to guarantee back pay for federal employees now on furlough is again an excellent move. While the public is against big government, they are not particularly antagonistic to federal employees, and would not like to see them suffer by lack of income. In other words, your bill has general public support. Although Pres. Obama said he will not negotiate piecemeal funding, he and the Democrats would have great difficulty in turning down this proposal.
    The next issue which seems to be coming to the table is a matter of government default. I believe most people don't really understand what would be defaulted, but they have the correct impression that it would be detrimental to the US future creditworthiness. For me, default means not paying the interest on previously issued government bonds. The obvious action on your part is to offer a bill to the Senate and the President to guarantee payment of interest on those bonds. It needs to be worded so that the people will relate this to your attempts to avoid default, and again the President and Democrats in the Senate will look bad if they do not approve your bill.
    The main point is to maintain a strategy of piecemeal government funding. Everyone knows of your opposition to Obamacare and your passage of many bills to defund that program. However, the Senate and the President have dug in their heels, and will never agree to such defunding. My suggestion is that you have no choice except to let Obamacare develop into a system which is very likely to not work and only continue to exasperate most people. Our main objective is smaller government, and we are accomplishing that with piecemeal funding.

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