The U.S. Treasury Department has options available to it right now to avoid default in the short term and provide the time required to engineer a long term solution to the problem of unrestrained government spending.
The U.S. does not have a revenue problem as currently, U.S. revenue is approximately $2.2 trillion dollars.
The total interest and required principal payments for the entire year are approximately $215 billion dollars. Even after satisfying Social Security, Medicare and Medicaid payments and military payroll in 2011 we will have cash reserves in hand.
Further, here are a few of the options already available to the Treasury Department to avoid short term default:
1. Prioritize payments;
2. Cease payments to the Federal Employees Pension Fund;
3. Sell the TARP assets;
4. Sell public lands;
5. Sell gold.
The rush to obtain a compromise to raise the debt ceiling before August 2, 2011 is a fabricated arbitrary deadline foisted by the current regime to perpetuate the spending abuses of the past 10 years and to mollify the political base of the the president by linking increased taxes to this compromise.
DEFAULT IS NOT NECESSARY…….STOP THE UNRESTRAINED GOVERNMENT SPENDING!!!
