Gas Bag

Seven Reasons Why August 2 Isn’t the End of the World

“ The U.S. will still be able to pay its creditors (i.e., it won’t default).  There’s no reason why the government needs to stop paying its creditors.  Ever.  Debt service payments (interest on the national debt) will only cost $30 billion in August.  As I’ve noted, we will take in $170-200 billion. Social Security checks will still go out. On July 12, President Obama suggested that, come August 2, he might not be able to send out the 50 million Social Security checks slated to go out in August. But since those checks only cost $50 billion, compared to $170-200 billion coming in, there will obviously be sufficient funds to mail them. Medicare and Medicaid payments will go out as usual. Experts predict we’ll owe about $50 billion to doctors and hospitals. Well, with $170-200 billion coming in, granny will get her health care, just like always. Veterans and active-duty military personnel will get paid. Paying our veterans will cost about $3 billion.  Ditto our soldiers in uniform.  That $6 billion is chump change by DC standards.  So that’s a total bill of $136 billion, easily covered by the $170-200 billion we’ll take in.  Of course, we won’t be able to afford everything the government currently spends on.  The Departments of HUD, Transportation, Commerce, Energy, and Education, for example, may have to take a pause ... (5,6, and 7) Absent in all these discussions are ways to get the country producing again.  It's all so very simple. Suspend all EPA and other environmental regulations until further notice. Drill Drill Drill, Mine Mine Mine, and Build Build Build. Eliminate the Cap Gains tax.  Pass the American Fairness in Tax Act - every US citizen pays the same 18% income tax.  No deductions , no exceptions. The economy will boom. You're welcome.