Moody's on the Debt Limit Debate and Obama's Lies...

Let's make this one a stand-alone newsbite...

Moody's offers different view on debt limit

* THAT'S THE HEADLINE; HERE'S THE STORY (VIA THE WASHINGTON POST):

One of the nation’s top credit-rating agencies says that the U.S. Treasury Department is likely to continue paying interest on the government’s debt even if Congress fails to lift the limit on borrowing next week, preserving the nation’s sterling AAA credit rating.

* WHY "LIKELY?" BECAUSE THEY'LL HAVE THE REVENUES TO DO SO AND THE CONSTITUTION REQUIRES THEM TO!

In a memo being circulated on Capitol Hill Wednesday, Moody’s Investors Service offers “answers to frequently asked questions” about the government shutdown, now in its second week, and the federal debt limit. President Obama has said that, unless Congress acts to raise the $16.7 trillion limit by next Thursday, the nation will be at risk of default.

Not so, Moody’s says in the memo dated Oct. 7.

* ONE... MORE... TIME...

Not so, Moody’s says in the memo dated Oct. 7.

(*SHRUG*)

"We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact,” the memo says. “The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasury’s extraordinary measures to raise funds) and a default."

* AGAIN... NOT ONLY DOES IT NOT "PROHIBIT" THE TREASURY FROM CONTINUING TO SERVICE THE DEBT, IT (THE CONSTITUTION) ACTUALLY REQUIRES THE TREASURY TO SERVICE THE DEBT AS OUR NATION'S #1 GOVERNMENTAL EXPENDITURE PRIORITY!!!

The memo offers a starkly different view of the consequences of congressional inaction on the debt limit than is held by the White House...

* OBAMA LIES! OBAMA'S PEOPLE LIE! GET THAT THROUGH YOUR HEADS, PEOPLE...!!! OBAMA IS FULL OF $HIT!

During a press conference at the White House Tuesday, Obama said missing the Oct. 17 deadline would invite “economic chaos.”

* HE... LIED...

(*SHRUG*)

The Moody’s memo goes on to argue that the situation is actually much less serious than in 2011, when the nation last faced a pitched battle over the debt limit. “The budget deficit was considerably larger in 2011 than it is currently, so the magnitude of the necessary spending cuts needed after 17 October is lower now than it was then,” the memo says.

* FOLKS... IF RIGHT HERE, RIGHT NOW, IS THE ONLY TIME THIS INFORMATION IS THRUST IN YOUR FACE TODAY... WHAT DOES THAT TELL YOU?