With the very real possibility of a U.S. government default on the debt October 17th, if Congress does not raise the debt ceiling, there is one vital issue that almost no one is talking about, except some folks suggesting a very bad response, for obvious reasons. When the government is not able to borrow further money, it will be faced with the question of what outstanding bills to pay. The bankers and their bought and paid for servants in Congress will argue that the FIRST and most important thing to pay will be interest payments on bonds and other outstanding debt instruments in order not to “upset” the banks, the “markets,” foreign creditors, such as China, etc. They will argue that because of that, there is “no money” to pay Social Security benefits, disability benefits, federal pensions, veterans benefits, Medicare and Medicaid payments, etc.
In essence, they will try to rob tens of millions of people (or more) to once again bail out the banks and international finance, as they did once before in 2008 and its aftermath, on a lesser scale. The correct position, of course, is that payments to actual people should be made first and primarily and if there is any supposed “shortage” of money, it is the interest on the”debt” that should not be paid. This whole charade has been set up as a means of attacking so-called “entitlements,” which are really the pitifully inadequate and meager benefits that people get after paying in taxes for a lifetime and which don’t come even close to paying them what they are owed. Meanwhile, even while the government is supposedly “shut down,” they are finding plenty of available money for what the vast majority of the Congressional members of both parties seem to think is truly “essential”–continuing done warfare to drop bombs to murder children and other innocent people in Pakistan, Afghanistan, and undoubtedly other places that we don’t even know about.