The American Thinker has a post up today discussing Governor Palin’s comments on the debt ceiling on Special Report with Bret Baier yesterday. They note that Governor Palin’s comments opposing raising the debt ceiling are right in line with what investors and conservative economists are saying:
It would be nice if we could have a non-partisan answer to this question. In fact, we do. Most street-wise investors are, if not unconcerned, at least they’re not panicking about the potential failure to raise the limit. In other words, people whose livelihoods depend on predicting the future do not see what Geithner and the administration are seeing.
Should this comfort us as the GOP moves reluctantly – with a few Democrats – toward a no vote for raising the debt ceiling?
The author then goes on to share an excerpt from an article on Governor Palin’s comments, but here are her comments on the debt ceiling in full:
Hells no, I would not vote to increase that debt ceiling. Otherwise it just shows the American people we’re not serious yet. We’re still going to incur more debt. No and we don’t have to increase the debt ceiling in the next few weeks. It turns my stomach to hear this assumption articulated that “well we have to” despite the fact we’re raking in, the federal government, six billion a day. Take that money and service our debt first and pay down some of that debt. Make sure that we’re showing the international financial markets and our lenders that we’re serious about getting our debt and our deficit problems under control.
I would say before you think about seriously voting to increase the debt limit and incur more unsustainable, immoral, unethical debt that is really going to ruin our country to continue down this path, prioritize. Service the debt first. Pay for the very essential services that are constitutionally mandated. Let the states take care of a whole lot of these services and projects and if a state wants to do something a little bit special like some extra roads, or extra museums and monuments and cowboy poetry, let that state figure out how they’re going to pay for it.
The American Thinker author, Rick Moran, goes on to mention that conservative economists are in agreement with the Governor:
This view is echoed by some conservative economists:
Here’s a paper from Reason columnist and Mercatus Center economist Veronique de Rugy and her colleague Jason Fichtner that lays out some plain facts on the matter:
The United States should not consider defaulting on its debt, nor should it put itself in a position where it has to postpone payment to contractors or "manage" other non-debt obligations. Neither, however, should Congress be forced to raise the debt ceiling under false pretenses. By our calculations, the United States has enough expected cash flow (tax revenue) and assets on hand to avoid either of these unattractive options until at least the end of the current fiscal year in September, perhaps even longer….
In fact, write de Rugy and Fichtner, the U.S. has about $2.4 trillion in assets it can part with to cover any shortfalls (they give a rundown of them in the paper). Better yet would be the sorts of institutional reforms, ranging from constitutional amendments to limit spending to BRAC-style actions to cut spending. They detail those too.
In fact, what you will be hearing from Republicans over the next few weeks is that if catastrophe occurs, the fault will lie squarely with Geithner who has it within his power to act on financing our debt in the manner suggested by Palin and others. If the markets blow up, it will be Geithner’s deliberate choice that they do.
You can read the whole piece here.
Governor Palin is not prone to fiscal myopia like so many others. She recognizes both the short term and long term effects of raising or not raising the debt ceiling. Additionally, she recognizes the effects that seriously addressing our debt would positively affect things internationally–something she has done since as far back as October 2009 when she warned of the effect of the weakened US dollar on commodity prices and called for energy independence and lower spending to address the debt.