“Never let a serious crisis go to waste,” was the mantra of Rahm Emanuel, President Obama’s first chief of staff. The “default” crises is the most recent incarnation of “crises management” in the Obama administration
In both 2011 and 2013, President Obama, many Republicans and Democrats, and the mainstream media said hitting the debt ceiling will cause a default on national debt. Moody’s ratings agency disagreed, saying as long as interest payments are made, no default would occur.
With regards to the actual debt ceiling, the Bipartisan Policy Center (BPC) predicted the debt ceiling would not be breached until somewhere between October 22 and November 1. The BPC accurately predicted when the 2011 debt ceiling would be breached, yet most of our “leaders” in Washington chose October 17 as the alleged drop-dead date.
The BPC’s analysis was accidentally validated by the President the day after he signed the recent deal into law, which gives him temporary authority to suspend the debt ceiling. After weeks of claiming the horrors of default would be felt after midnight on October 16, it appears the President has not raised the debt ceiling as of publication time. Treasury Department spokesperson Brandi Hoffine refused to comment on the suspension.
In other words, either the President knew default would not happen on October 17, or that a default would not be as catastrophic as his rhetoric claimed.
Notwithstanding, many politicians continued to claim default would be a reality at the stroke of midnight on October 16 if the debt ceiling was breached – histrionics that were false for two reasons.
Tea Party activists have always known this President is not serious about reducing debt. His thespian concern for breaching the debt ceiling makes claims of “default” manfactured, which – again – it always was.