Campfire Blog

It’s impossible to default on the debt—-years down the road, maybe

FF - Man Atop the Horse (cropped)Average monthly interest costs are $18 billion….. we take in on average $225 billion. By law, the president must pay interest first before anything else.

In addition to interest we must roll over the $550 billion of maturing debt each month. Newly issued bonds replace maturing bonds with no net change in total debt outstanding. If the Chinese and other investors won’t purchase them, Federal Reserve Chairman Bernanke will just buy them for the Fed’s account.

When confronted with money problems, adults make decisions and set priorities. We pay the mortgage before we pay the cable bill. But the Obama administration chooses to intentionally inflict pain on the American people by making the most headline-grabbing cuts possible.

What better example of this disgusting antic than erecting physical barriers on Tuesday, blocking access to the open air World War II Memorial to a group of Mississippi visiting vets. Erecting the barriers actually cost money to do so!

They recently shut down White House tours and National Parks but still managed to find the money for bonuses to IRS staffers and a multi-million dollar weekend of golf for the president and Tiger Woods.

The Social Security folks send out $68 billion a month. Active-duty military members get about $12.5 billion. From there, we work through the budget in order of priority, air traffic controllers, meat inspectors, etc. Unfortunately, the $225 billion a month falls short of the federal government’s important obligations.

But why not be honest and say “the government wouldn’t be able to pay all of itsbills” rather than the over-dramatic nonsense that “we will default on our debt”?

Did we need to lay out the $13 billion in crony loans to the solar energy investors that also happen to be major Democratic donors? Or, most especially, the billions that the “Affordable” Care Act is going to cost?

What if we asked employees of departments of agriculture, education, and energy if they would enjoy a voluntary unpaid sabbatical for the number of months they would choose? Would that provide enough cash flow to keep the White House tours going and the parks open for the American people?

The doomsayers have it exactly backwards. Say your personal finances were a mess, so you quit adding debt and cut spending. Your credit score would improve. If you don’t believe me, ask any banker. Why would raising our national debt limit help our credit rating?

Some in the media posit that Standard & Poor’s reduced our credit rating due to “political gridlock.” Do you think it just might be because we are like a household earning $26,000 a year, spending $38,000 and increasing daily, our $169,000 credit card debt? How significant is the comparable $865 sequester reduction in relation to a $38,000 expense level?

Why do we tolerate such nonsense and demagoguery from our politicians and media?

Employees in small towns all across America suffer lower incomes when their employer struggles or goes out of business. In Washington, D.C, forget it! Our Ruling Political Elite believe we out here in the hinterlands (colonies?!) just fell off the pumpkin truck.

If you read or hear of “journalists” talking about default, forward them this email.


  1. Jim Neal

    Foster-

    Has the dollar collapsed as it did in nations undergoing severe “debt crises”? No it has not.

    What is the currency in which global investors seek save haven in times of turmoil? Is it the yuan? No it is not.

    Do we have a debt crisis in the USA? No we do not.

    We have long term structural issues which need to be addressed, amongst them health care costs / Medicare and defense spending. However right now we have anemic growth because consumers are not spending money and the small club of wealthiest Americans save their non-earned income. Unemployment is a drag on the economy and will be so until people get jobs.

    Your prescription is akin to the following. A patient who has suffered a massive coronary is admitted into critical care. He/she suffers from hypertension and diabetes. Your recommendation is to put them on a diet and not let then smoke.

    In the long run you would be correct. In the short term you’d kill them.

  2. Jeff Kramer

    Foster,

    Once again, your perspective is one that I sincerely hope will reach every lawmaker and lobbyist in Washington…

    Jeff Kramer
    Film writer/director

  3. Tom Blasingame

    Foster, I appreciate your comments. However, I have a slightly different take on our
    current situation. In my humble opinion, the “Commander In Chief” has a different
    agenda than we think. I think his objective is the destruction of the United States
    of America, and I think everything he has done to date has been oriented to the
    maximization of our debt and the planned default that he can arrange. If he can
    make it possible for us to lose our monetary system and go into a financial train
    wreck, he will have accomplished his goals and will established his legacy as the
    person that singlehandedly destroyed the greatest nation in the world. He will be
    a hero in the Islamic world and in all of the arab nations. That is the legacy he wants.

    • Carol

      SIR, I AGREE WITH YOU 100%, OUR SO CALLED PRESIDENT I THINK IS OUT RUIN AMERICA AND SO FAR HE HAS DONE A VERY GOOD JOB AT IT. I WONDER JUST HOW LONG HIS OTHER CITIZENS WILL WAKE UP TO WHAT HE DOING!!!!!!!

      • beans

        I don’t like him as a president. But why on earth would his ACTUAL plan be to destroy the United States? What could he possibly gain from this? Where is your goddamn brain?

  4. Fred McNair IV

    Foster—thank you for your clarifying commentary. I align with your qualitative and quantitative assessment. The problem we face is not our ability to communicate cogent thoughts and ideas, but that the message is muted by the media that is controlled by the liberal element in our country. It is almost “a police state-run” media conglomerate that deflects and attacks us as anti-American. It is extraordinarily frustrating to witness the imbalance. Keep fighting and stay the course. Thank you for your efforts and clarity of thought.

  5. Rodman Gregg

    Foster, you’ve made many good points in which I agree. The closing of the WW2 Memorial to vets is one example. And, yes, the government – including Congress – has been fiscally irresponsible for years.

    However, central to the problem is the gulf between the two parties where compromise is not an option. Pres. Reagan and Tip O’Neil came to an agreement and things moved forward. Now, however, you have a minority, obstructionalist segment of the Republican party won’t even think of trying to work things out with the other side, bringing us gridlock to all our citizens.

    As a moderate Republican, I fear we won’t accomplish the crucial goals you mention,
    and the current status could push our nation into a financial abyss. Sen.Cruz’s extreme position runs counter to what most conservatives believe.

    Until cooler heads come together, we’re all in trouble.

    Thanks again for your fine campfire blog.

    R. Gregg, Wilmington, DE

  6. ed sanden

    Good article! It’s hard for a non-thinking public to see clearly when mesmerized by a rock star president with the media agog in the front row, but gradually people are understanding that to oppose a dull-minded, permanent obligation for more federal government spending (the “Affordable Care Act”) is a responsibility of thinking elected representatives. If this rolls out, how will we ever turn that one off?

  7. jane halbritter

    Great observations. By the way,everyone should read an article in the Business Insider. It tells what I believe is the real end game behind their desperation to pass this unaffordable health care act . They are desperate to bailout the fiscally insolvent cities and states who have not funded their retiree health plans .This is a THREE TRILLION dollar stealth bailout. They know that Meredith Whitney, a wall street analyst ,who said the municipal bond market was going to crash, was correct. They had to find a way to siphon money to their political buddies. And they knew this would NEVER pass if debated in the light of day. And if these blue states imploded, it would prove their big spending cannot work.Politicians NEVER want to face the day of reckoning – they always pass the problems on to save their political skins. Disgraceful.

  8. M Steven Gronka

    I chided Brett Baier very strongly on his facebook page for using the term government shutdown and told him that it is irresponsible reporting to use the term and that the term is being used to sell news and get ratings.

    Meanwhile back at the ranch everybody please get up to speed on the Truckers Ride For The Constitution, October 11 -13. Come out and join us. This is not for truckers only. You don’t have to feel impotent against the Federal Government, because when you ride with the Truckers they have the power to shut down the whole nation if it came to that. Right now the plan is to shut down DC and have truckers and friends who can’t make it to DC go to their state Capitals and do the same thing or at least carry the message that we want a return to our Constitutional Republic. We the people are fed up with progressivism, socialism, communism, and collectivism.

    Please read the following and join us! There is a round to that is being planned maybe right before elections next year. Get out from behind your computers and pointing out the obvious in various chats and let’s take a stand for “We The People”!!!

    Your thoughts please!
    Truckers Ride For The Constitution

    This is the link to the US News and World Report Article

    http://www.usnews.com/news/articles/2013/09/30/dc-shutdown-is-full-speed-ahead-say-organizers-of-trucker-protest
    Home > News > D.C. Shutdown Is Full-Speed Ahead, Say Organizers of Trucker Protest

    D.C. Shutdown Is Full-Speed Ahead, Say Organizers of Trucker Protest

    ‘The shutdown is actually a traffic jam,’ explains former country music star, who offers to cancel ride if Obama is impeached

    By Steven Nelson

    September 30, 2013 RSS Feed PrintinShare9

    A mass truck convoy congests roadways on July 4, 2008, in Wellington, New Zealand. Some American truckers are planning a similar nationwide protest on Oct. 11-13, 2013.

    There may or may not be a government shutdown in October, but truckers are heading toward Washington, D.C., regardless, aiming to shut the city down themselves.

    “The shutdown is actually a traffic jam,” former country music star and event organizer Zeeda Andrews told U.S. News. “This is a three-day traffic jam.”

    Andrews, a former spokesmodel for Mack Trucks, says around 3,000 truckers are planning to zoom through and around Washington, D.C., beginning Oct. 11.

    There are two distinct issues at hand. The first is a range of frustrations experienced by independent truck drivers not employed by a large company or affiliated with a union.

    But the truckers are also targeting President Barack Obama and the nation’s political leadership. A list of demands addressing “corruption against our Constitution” will be delivered to lawmakers before the ride, Andrews said, and lawmakers can spare D.C.-area residents the traffic jam if they agree to them.

    [RELATED: D.C. Allows Protesters to Parade Without Paperwork]

    The hitch: one of those demands is that Obama be removed from office, a request the organizers find perfectly reasonable. Obama committed treason by allegedly funneling weapons from Benghazi, Libya, to al-Qaida-linked Syrian rebels, said online radio host Peter Santilli, who is heading up a parallel protest in California.

    “Originally the sheer symbolism of the truckers riding into Washington, D.C., was powerful and a great photo opportunity, but this thing has further evolved,” Santilli said.

    The organizers are also upset by a 2012 provision in the National Defense Authorization Act, which authorizes the president to indefinitely detain Americans without trial, and Obama’s health care reform law.

    Since advertising the ride on social media, Andrews said, interest has exploded.

    “Obama said last week it’s my way or the highway, and the people are choosing the highway,” she said. “It’s viral, it’s like a fire, it’s burning out of control [and] people really want to help because their issues are the same as the truckers are having. … All Americans and all truckers agree on one thing: Barack Obama is a threat to American safety.”

    [ENJOY: Editorial Cartoons About President Obama]

    A movement of highway overpass-decorating activists seeking Obama’s impeachment will cheer on the truckers, Santilli said, and some truckers are also planning to meet in state capitals.

    “The days of the Million Man March are over, because people can’t afford to go to D.C.,” he said, “[but] the truckers are already out on the road, they’re on the streets.”

    In order to comply with freight-lugging restrictions, the truckers entering D.C. will “bobtail” their vehicles, meaning they will first detach their cargo trailers.

    “The bobtailers will be leading the charge,” Andrews said. “They will be flying their American flags and there will be [pro-Constitution] banners.”

    The truckers “don’t have to lay on the air horn,” she said. “Their engines are going to make enough noise.”

    [JOBS: A Glance at Truck-Driving Positions]

    For three days, the organizers plan to have the truckers – along with other supporters driving in cars and motorcycles – rumble through the city. Independent truckers with their trailers will drive around I-495, the D.C. beltway.

    “We would actually like to be like the Egyptians, they all showed up and got something done,” Andrews said.

    Around 2,000 slow-moving truckers can clog up northbound I-95, she said.

    Whether or not the truckers pack a punch to D.C. traffic likely depends on the number of participants. A similar three-day protest in 2007, against illegal immigration and competition from Mexican truckers, did not spoil travelers’ commutes as feared, the Washington Examiner reported.

    During the upcoming protest, sympathizers who work for large trucking companies “are going to fly the flag and post banners saying ‘Ride for the Constitution’ to support their brothers and sisters,” Andrews said.

    Truckers, she said, “are a different breed of people, they are very loyal to each other and they can do something at the drop of a hat.”

    Various labor frustrations by independent truckers spawned the protest. Grievances included Environmental Protection Agency fuel efficiency standards and the high cost of diesel. State and local anti-idling laws as well as insurance companies purportedly requiring technological updates are also among the irritations, Andrews said.

    Independent truckers, she explained, own their own trucks or small fleets of trucks. They contract their labor – and use of their vehicle – on their own. Mexican truckers accept less money, and are undercutting American truckers, she said, forcing down wages on top of fuel cost increases.

    “They don’t have unions, obviously, that’s why companies take advantage of them,” Santilli said.

    A Facebook page advertising the ride, which is officially called “Truckers Ride For The Constitution,” has close to 30,000 likes. Organizers are raising money to help defray the cost of fuel for participants.

  9. Brian DiSabatino

    If the President knowingly misuses the terminology with the purpose of creating a market reaction, is he violating his oath? I wonder.

  10. Lamarre Notargiacomo

    Right on Mr. Friess! Your comments are spot on and refreshing to hear in the midst of hype and super-hype! The sky is going to fall tomorrow if the government shuts down! The libertarian in me says “SHUT IT DOWN!” Defund the entire corrupt system and start from scratch. Obama has burned billions of dollars arming terrorists, but shuts down veterans memorials? I would love to see someone publicly ask the “president” (not MY president!), “Mr. President, why do you hate the American people so much?” I have been a Republican since I was old enough to vote and I am very disappointed in our leadership. Our party is looking more like the democrat party with every vote. I hold them equally responsible for this mess for failing to rein in the tyrant in the White House. ALL of our leaders in both parties, must be held accountable for their actions or for their complicity. Keep up the good work for liberty Mr. Friess. I salute our veterans and thank them for sacrificing so much for our freedom. God bless all of you.

  11. Capt Joseph R. John, USN (Ret)

    Simply OUTSTANDING!!! In the future, I hope you will be able to communicate this information to millions of American voters. I will distribute your words to the nearly 10,000 Combat Veterans who support us, are in our data base, follow us on Facebook, and follow us on Twitter. I would like to be on a speaking engagement with you once again–I really enjoyed the experience and the pleasure of meeting you and Lynn. I will be interviewed on the Chuck Wilder National Talk Radio Show tomorrow at 1:30 PM (Pacific Time); if defaulting on the debt comes up I will refer to your words, and on the myth of Defaulting on the National Debt. Thank you again.

    Respectfully,
    Joe John
    Combat Veterans For Congress
    http://www.CombatVeteransForCongress.org

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