Moody’s on Debt Limit: Calling Obama’s Bluff on Default.

Moody’s on Debt Limit: Calling Obama’s Bluff on Default.HT: Heritage.

A voice of reason emerged today among the doomsday predictions over a U.S. government default if the debt limit is not raised by mid-October. The Washington Post reports that Moody’s, a top credit rating service, suggested that hitting the debt limit does not mean the U.S. would default:

“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.”

In recent weeks, President Obama and Treasury Secretary Jack Lew have made the rounds, arguing vociferously that if Congress does not raise the debt limit by October 17, the U.S. could default and “economic chaos” would ensue. The Treasury Department put out an entire report on the damaging consequences of a government default. The President even went so far as to call it an “economic shutdown” and began scaring seniors, suggesting that their Social Security benefit checks wouldn’t arrive on time.

Unless President Obama deliberately chose to default, there are at least three reasons why the U.S. will not default on its debt:

1. Revenues. Treasury will collect more than enough revenue in fiscal year 2014 to meet all debt obligations and most non-debt obligations on an annualized basis. Interest payments consume less than 10 percent of revenues, and even if interest rates rose, the U.S. would still be able to service its debt.

2. Prioritization: The Treasury and President Obama have discretion at the debt limit to prioritize payments in the best interest of the nation. Treasury could hold some cash reserves to ensure debt obligations are met on time, prioritizing debt payment above all other spending. Some non-debt payments would be delayed during a debt limit impasse.

3. “Assets.” Nearly one-third of the federal debt subject to the limit consists of intragovernmental debt, or debt which federal agencies have incurred amongst themselves. Redeeming bonds in government trust funds frees up room under the debt limit to borrow additional cash to meet obligations.

There is even a trump card. The Full Faith and Credit Act, H.R. 807, which passed in the House of Representatives, would allow the Treasury to borrow funds as necessary to meet debt obligations.
With the risk of default on the debt almost nil, what should lawmakers do on the debt ceiling?

The debt limit presents a decisive moment for Congress to take charge of the automatic spending increases that are driving the U.S. spending and debt crisis. Congress should cut spending and reform mandatory programs to put the budget on a path to balance before increasing the debt limit.

Video - Congress Member Sheila Jackson Lee Says “We Have Martial Law”

Source: Washington's Blog

Come Again?

Yesterday, congress woman Sheila Jackson Lee said:

We have martial law…and my colleagues know what it means…

"I'm not a dictator" Biden Vows Obama Will Use Executive Orders To Further Gun Control After Senate Failure.

"I'm not a dictator" Biden Vows Obama Will Use Executive Orders To Further Gun Control After Senate Failure.WASHINGTON — Vice President Biden told White House allies in the gun control fight Thursday that President Obama will be announcing new executive actions on gun violence in the days after the Senate voted down a gun violence bill.

On a conference call with “stakeholders,” Biden told gun control advocates that the fight is not over and that eventual action on gun control will come.

Press were not invited to the conference call; a participant provided BuzzFeed with access.

“Look I know you’re going to say that I’m just being an optimist and I’m trying to put a good face on this. But you know I’ve been around here a long time and we’ve already done, because of you, some really good things,” Biden said. “Number one, the president is already lining up some additional executive actions he’s going to be taking later this week.”

After the Newtown shootings, Obama took a number of executive actions to expand research into gun violence and other areas favored by the gun control community. He took the actions without Congressional approval, leading to outrage by some conservatives.

Biden mentioned several areas where executive action has been taken, including helping schools that want them to hire more armed police offers and training teachers to identify and treat possible future school shooters.Hmmmm.....Obama Blames “Founding Fathers” For Making It Difficult For Him To “Bring Change”But..."I will keep plotting"Read the full story here.

"Time is On MY Side" - Iran, world powers remain "far apart" - EU's Ashton.

"Time is On MY Side" - Iran, world powers remain "far apart" - EU's Ashton.(TI).World powers and Iran remained far apart after ending two days of intensive talks on Tehran's nuclear programme on Saturday, the European Union's foreign policy chief said, prolonging a stand-off that risks spiralling into a new Middle East war, Reuters reported.

The failure to reach a breakthrough deal aimed at easing growing international concern over Iran's contested nuclear activity marked a further setback for diplomatic efforts to resolve the decade-old dispute peacefully.

Underlining the lack of substantial progress during the meeting in the Kazakh city of Almaty, no new negotiations between the two sides appeared to have been scheduled.

"Over two days of talks, we had long and intensive discussions on the issues addressed in our confidence-building proposal," EU foreign policy chief Catherine Ashton said.

"It became clear that our positions remain far apart," Ashton, who represents the six powers - the United States, Russia, China, France, Britain and Germany - in dealings with Iran, told a news conference.

Ashton said that for the first time there had been a "real back and forth between us when were able to discuss details, to pose questions, and to get answers directly ... To that extent, that has been a very important element"

But, she added: "What matters in the end is substance. We know what we want to achieve and the challenge is to get real engagement so we can move forward with this and that's the ambition."

The talks were held against a backdrop of flaring tension between big powers and North Korea, which like Iran is defying international demands to curb its nuclear programme. But unlike North Korea, which has carried out three nuclear tests since 2006, Iran says its nuclear energy activity is entirely peaceful.Hmmmmm.......North Koreans among 40 dead at Iran nuke plant......“engineering team from the Shahid Hemmat Industrial Group, the Iranian organization that developed the Shehab-3 ballistic missile in North korea” Peaceful indeed. Read the full story here.

"Strait Shooter" Morsi considers ordering the military to deal with Port Said riots.

"Strait Shooter" Morsi considers ordering the military to deal with Port Said riots.(TOI).CAIRO (AP) — Egypt’s Islamist president is considering whether to give the military full control of the restive Suez Canal city of Port Said after days of deadly street clashes stoked by excessive use of force by riot police, officials said Tuesday.

A handover of the city to the military would be a recognition of the failure of Mohammed Morsi’s government to bring calm to Port Said, which has been in turmoil since late January. With protests and strikes that have turned into an outright revolt, residents have been venting their fury at both the president and the security forces.

A third day of clashes erupted at around daybreak Tuesday as police opened fire with tear gas and birdshot at protesters throwing stones and firebombs at the local headquarters of the National Security Agency, setting part of the building on fire. The latest round of rioting and violence in Port Said has left at least three civilians and three policemen dead and hundreds injured since Sunday.

Port Said’s protesters largely see the military more positively. Some cheered and chanted “the people and army are one hand” Sunday when troops fired over the heads of police in an attempt to push them back from clashes with protesters outside police headquarters. Still, it is not clear they would halt the unrest if the army took control.

Morsi met with his security chief and top military officers to discuss pulling police out of Port Said and putting the military in charge of security in the streets on hopes of bringing calm, officials from the military and the president’s office said. “The presidency is considering this option after relations between the security apparatus and the people of Port Said deteriorated,” said one official in the president’s office. He added that the idea behind the proposal is that once the army takes control, it would presumably not get into confrontation with protesters.

Port Said could present “a new model for civilian-military relations in the comeback of the military to political life and Morsi surely will keep an eye on it,” Galal Nasser, chief-editor of Al-Ahram Weekly and a fellow at the Nasser Military Academy, said. “Morsi is forced to bring the military because he has no other option. But he hopes the military fails in its mission,” he said.Hmmmm.......Obama: "Morsi is a strait shooter".....yup only you didn't mention the 'targets'.Read the full story here.

North Korea imposes martial law, orders troops to ‘be ready for war’ - report

North Korea imposes martial law, orders troops to ‘be ready for war’ - report.(RT).North Korea has allegedly been placed under martial law and its ruler Kim Jong-un has ordered the army to “prepare for war”, a South Korean daily claims. ­The North Korean leader issued a series of orders to his top defense and security officials on Saturday to conclude preparations for a new nuclear test, the Seoul based Korea JoongAng Daily alleges citing an unnamed source.
The source reportedly said that Kim Jong-un issued a secret order to “complete preparations for a nuclear weapons test 'and carry it out soon”.
According to the source, Kim Jong-un also said, “The country will be under martial law starting from midnight January 29th and all the frontline and central units should be ready for war.”
The source told the South Korean daily that the nuclear test could come earlier than expected. Other analysts have said it would likely be held on February 16th, the birthday of the former leader Kim Jong-il, who died in 2011.
Another suggestion as to the test’s timing included February 25th, the inauguration day of South Korean President-elect Park Geun-Hye, the Korea JoongAng Daily reported.
North Korean media also reported that Kim Jong-un told his top defense officials to take “effective, high-profile state measures” at a meeting on Saturday.
The alleged measures come amid a new spike in tensions caused by a new round of sanctions on North Korean entities and individuals, including travel bans and asset freezes, which were passed unanimously by the United Nations Security Council in December 2012.
The Security Council, including China, backed Resolution 2087, after Pyongyang carried out the launch of a long range rocket in December 2012.
Pyongyang claimed it was for the peaceful launch of a satellite, but critics say it was a thinly veiled test-firing of an intercontinental ballistic missile.
Since the resolution was approved North Korea has issued a number of warnings, including a statement on the day it was implemented, that there will be “no more dialogue or denuclearization.” It also threatened “all-out war” against Washington, which it said was its sworn enemy and blamed for leading the sanctions.
However, the source also said that Kim Jong-un is concerned about China’s reaction to a nuclear test.
“China is still useful to us. We need to be careful of the relationship with China,” Kim allegedly said at the meeting.
A South Korean government official told reporters Wednesday that satellite images had discovered increased activity and movement of equipment near the Punggye-ri nuclear test site in the northwest of the country and that the mouth of the test shaft had been sealed in readiness for a nuclear test.
According to the report in the Korea JoongAng Daily, the South Korean military, as of Tuesday, had not detected any movements in North Korea’s frontline units.
The President of South Korea, Lee Myung-bak, has ordered the military to make a “strong response” to any provocation from North Korea.
The last time North Korea was placed under martial law was in March 1993, just days before it withdrew from the Treaty for the Non-Proliferation of Nuclear Weapons, and the regime also ordered its troops to be ready for war.
There is also international concern about whether Pyongyang will use highly-enriched uranium to get better results in its third nuclear test. Previous tests used plutonium, were detonated underground, and had reportedly limited success.Hmmm....I'm sure Iranian 'scientists' will be there to 'observe'.Read the full story here.

Video - Police Audio Confirm: Going For The Guns – Martial Law By Early 2013.

Holder’s Black Panther blind spot - Why does A.G. Holder's Justice Department ignores black-on-white crime?

Holder’s Black Panther blind spot - Why does A.G. Holder's Justice Department ignores black-on-white crime? (WT).What is it about the Justice Department and the Black Panthers? On March 24, Mikhail Muhammad, leader of the New Black Panther Party, offered a $10,000 bounty for the “capture” of George Zimmerman, who shot and killed Trayvon Martin. The Panthers distributed wanted posters, calling him a “child killer” and offering the bounty “dead or alive.” Muhammad warned that Mr. Zimmerman “should be fearful for his life.”
These acts were almost certainly criminal. Florida Code 787.01 makes it a felony to threaten someone or abduct them with the intent to terrorize. Florida Code 777.04 further criminalizes solicitation which “commands, encourages, hires or requests another person” to engage in criminal activity such as kidnapping. Solicitation to kidnap is also a federal crime, and the fact that this was unambiguously racially-based brings it within the purview of federal hate-crime laws.
There is an important moral dimension at play as well. This scandal offers an opportunity for the Obama administration to show it can act impartially and calm racial tensions. So far, the White House has failed to lead on the issue. President Obama’s high-profile public statement - “If I had a son, he’d look like Trayvon” - was bizarre and seemed to show undue bias. Taking swift action against those who seek to incite racial violence would demonstrate that the federal government enforces the law without prejudice.
The Justice Department has yet to step up. Mr. Zimmerman’s worried family sent a letter to Attorney General Eric H. Holder Jr. asking, “Why, when the law of the land is crystal clear, is your office not arresting the New Black Panthers for hate crimes?… Since when can a group of people put a bounty on someone’s head, circulate Wanted posters publicly, and still be walking the streets?” They are still awaiting a response.
Attorney J. Christian Adams, who resigned from Justice in 2010 to protest the handling of the Black Panther case, testified before the U.S. Commission on Civil Rights that he was told “cases are not going to be brought against black defendants for the benefit of white victims.” The December 2010 Civil Rights Commission report on its investigation said, “While the department has issued general statements that it enforces the laws without regard to race, these assurances do not confirm, deny or explain the specific allegations of misconduct.” In March 2011, Mr. Holder claimed it was “simply false” that the Justice Department made enforcement decisions based on race. Now he has an opportunity to prove it by opening a criminal investigation against the Black Panthers.Hmmmm....................The Ulsterman Report: Is Barack Obama Preparing to Mobilize Race Riots?“Even if it means the threat of race riots. They are willing to go that far – go down that road if need be. If the Obama team can’t guilt enough of White America into voting for them in 2012 – they are just fine with trying to scare the sh-t out of them to do it.” -Insider: August 15th, 2011.Read the full story here.

Gen. T. Franks Doubts Constitution Will Survive WMD Attack.

Gen. Franks Doubts Constitution Will Survive WMD Attack.(DocsTalk).Gen. Tommy Franks says that if the United States is hit with a weapon of mass destruction that inflicts large casualties, the Constitution will likely be discarded in favor of a military form of government.Franks, who successfully led the U.S. military operation to liberate Iraq, expressed his worries in an extensive interview he gave to the men’s lifestyle magazine Cigar Aficionado. In the magazine’s December edition, the former commander of the military’s Central Command warned that if terrorists succeeded in using a weapon of mass destruction (WMD) against the U.S. or one of our allies, it would likely have catastrophic consequences for our cherished republican form of government. Discussing the hypothetical dangers posed to the U.S. in the wake of Sept. 11, Franks said that “the worst thing that could happen” is if terrorists acquire and then use a biological, chemical or nuclear weapon that inflicts heavy casualties. If that happens, Franks said, “... the Western world, the free world, loses what it cherishes most, and that is freedom and liberty we’ve seen for a couple of hundred years in this grand experiment that we call democracy.”
Franks then offered “in a practical sense” what he thinks would happen in the aftermath of such an attack. “It means the potential of a weapon of mass destruction and a terrorist, massive, casualty-producing event somewhere in the Western world – it may be in the United States of America – that causes our population to question our own Constitution and to begin to militarize our country in order to avoid a repeat of another mass, casualty-producing event. Which in fact, then begins to unravel the fabric of our Constitution. Two steps, very, very important.”
Franks didn’t speculate about how soon such an event might take place. Already, critics of the U.S. Patriot Act, rushed through Congress in the wake of the Sept. 11 attacks, have argued that the law aims to curtail civil liberties and sets a dangerous precedent. But Franks’ scenario goes much further. He is the first high-ranking official to openly speculate that the Constitution could be scrapped in favor of a military form of government. Franks offered his assessment on a number of topics to Cigar Aficionado, including: President Bush: “As I look at President Bush, I think he will ultimately be judged as a man of extremely high character. A very thoughtful man, not having been appraised properly by those who would say he’s not very smart. I find the contrary. I think he’s very, very bright. And I suspect that he’ll be judged as a man who led this country through a crease in history effectively. Probably we’ll think of him in years to come as an American hero.”Franks ended his interview with a less-than-optimistic note. “It’s not in the history of civilization for peace ever to reign. Never has in the history of man. ... I doubt that we’ll ever have a time when the world will actually be at peace.”Read the full story here.

Video - Hedges, author and Pulitzer Prize-winning reporter Sues Obama Administration Over the NDAA.

 Hedges, author and Pulitzer Prize-winning reporter Sues Obama Administration Over the NDAA.“It is a piece of legislation that was essentially supported by both political parties. Indeed the sponsors of the Bill are Carl Levin, a Democrat and John McCain, a Republican. There was no outcry within the systems of power itself, and that of course meant there was no outcry within the media, which allows those systems of power to set the parameters of debate.” Hedges added. The controversial legislation, signed into law by Obama on New Years Eve, allows American citizens to be abducted and held in a detention camp anywhere in the world without trial under section 1031. Although Obama indicated in a signing statement attached to the bill that he would not use it to indefinitely detain American citizens, it was the Obama administration itself that requested the provision be worded so it would apply to US citizens. I’ll sign this into law, but I promise I won’t use it. That’s how stupid your President thinks you are.HT: Dvorak.

Obama in reelection mode Preps for a ‘Non-Emergency’ Named Iran.

Obama in reelection mode Preps for a ‘Non-Emergency’ Named Iran.(NewZeal).By: Terresa Monroe-Hamilton.
On Friday, the 16th, Obama signed a new Executive Order into being and this one’s timing is very curious. Ed Morrissey (who I highly respect) of Hot Air says that it is simply a reissue of an EO that is 18 years old, that was issued in 1994 by Bill Clinton – EO (12919). I find myself mostly in agreement with Morrissey. The EO is vague and far-reaching. Basically Morrissey points out that it simply adds the DHS to the mix of departments and is apparently just an update.

From Hot Air:

In fact, that’s almost entirely what it is. The original EO dealing with national defense resources preparedness was issued in 1939 (EO 8248) according to the National Archives. It has been superseded a number of times, starting in 1951 by nearly every President through Bill Clinton, and amended twice by George W. Bush.

I find the following to be of significant relevance:

Obama has added to Section 201(b) the phrase “under both emergency and non-emergency conditions.” In 12919, though, the duties of the Cabinet Secretaries were not limited to emergency situations in Section 201(b), either. And in both EOs, section 102 specifically notes that the EO is intended to ensure defense preparedness “in peacetime and in times of national emergency.”

So, is this a signal that Obama could use his powers during a ‘non-emergency?’ I would certainly not put it past him.

Take an in-depth look at it though, because it is a significant threat to our constitutional rights. It could open the way for ‘soft martial law.’ From Examiner.com:

On March 16th, President Obama signed a new Executive Order which expands upon a prior order issued in 1950 for Disaster Preparedness, and gives the office of the President complete control over all the resources in the United States in times of war or emergency.
The National Defense Resources Preparedness order gives the Executive Branch the power to control and allocate energy, production, transportation, food, and even water resources by decree under the auspices of national defense and national security. The order is not limited to wartime implementation, as one of the order’s functions includes the command and control of resources in peacetime determinations.

And:

Additionally, each cabinet under the Executive Branch has been given specific powers when the order is executed, and include the absolute control over food, water, and other resource distributions.

That gives the President sweeping powers and should raise the alarm level in all Americans – those with a survival instinct any way.

When I first saw the Executive Order, it gave me great pause. In fact, my blood ran cold and I assumed that I was hearing that he was getting ready to declare martial law. I’m all for conspiracies, but let’s pick the right one. Not a feint to the right, when they are really dodging to the left (far left that is).

Ask yourself, why was this issued now and why this Executive Order? Three and a half years into Obama’s presidency… Nothing is what it seems in this administration, so let’s noodle on this shall we?

If you were a Progressive Marxist who was desperate to retain your hold on power in the Presidency and your numbers were dropping like a ten ton stone, what would you do? Ah, now we start looking for the real motivations here. If he follows history and the actions of past leaders, he would go to war if all else failed. Enter Iran.
Everything fits together if you look at it right. Syria, Israel, Iran, the US… Obama is not incompetent, he does everything for a reason. He’s getting ready to dance in the Middle East, but he’s not doing it for our friend and ally Israel. No, he’s in reelection mode and he wants a whole bevy of issues swept under the carpet and a war is the perfect distraction. I don’t think he has any intention of ‘winning’ it – this is just so he can finish what he started in the US – ‘change’ the Marxist way that is.

I believe that World War III has already begun. This war will not just be Iran and the US – it will be a World War with allies on both sides of the aisle. Guess which side Russia, China, Venezuela and N. Korea will be on? This could well be not only a cyber war, but a nuclear war. Do not fool yourself into thinking that we will be safe from the war because we have an ocean between ‘us’ and ‘them.’ That is no longer true.

So why issue an EO that was already out there, merely updated with new agencies and the inclusion of non-emergency situations? My take, he’s getting everything organized for a non-emergency named Iran. With the chaos of the American Spring coming, Depression economics in place with high unemployment, inflation and an eminent stock market crash, the timing will be perfect this fall to go to war and bring the top down on America. But don’t worry, they’ll at least call it an emergency… You know just so they can finally be rid of that old, dusty document called the Constitution.Hmmmm.........."Dictatorship naturally arises out of democracy, and the most aggravated form of tyranny and slavery out of the most extreme liberty". ~ Plato.Read the full story here.