AP's Hurst Implies Default Would Happen on Aug. 2 Without Debt-Ceiling Increase, Claims Past Debt-Limit Raises 'Routine'
In his roughly 10 a.m. report this morning (HT to an NB emailer), the Associated Press's Steven R. Hurst opened by saying that "The top Republican in the Senate said Congress and the White House were very close to a deal on raising the limit on U.S. borrowing that would avert an unprecedented default on America's debt, ending one of the nastiest partisan fights in recent memory."
In his second sentence, he wrote, based on a statement from Republican Senate Majority Leader Mitch McConnell, that an agreement would "likely extend U.S. borrowing authority, which expires on Tuesday, beyond the 2012 presidential and congressional elections," giving casual readers the impression that default will occur if the borrowing authority ends.
That simply isn't so. Who says so? Moody's says so, as carried in a live blog item at the Wall Street Journal on Tuesday (HT Verum Serum):
“What would Moody’s consider a default? We do not consider delayed payments for obligations other than debt service to be a default.” In other words, President Barack Obama could make good on his warnings that Social Security checks wouldn’t go out, and that wouldn’t constitute a “default.”
Of course not. Default only occurs when you're late making debt payments or fail to make them, just as being late with the gas bill doesn't place a homeowner in default on his or her mortgage.
Oh, and did I say that the Obama administration has also said that default won't happen, just not openly? Yes they have, as Fox Business reported on Monday:
While officials from the Obama Administration raised their rhetoric over the weekend about the possibility of a debt default if the debt ceiling isn't raised, they privately have been telling top executives at major U.S. banks that such an event won’t happen, FOX Business has learned.
While we're in the neighborhood, if the Social Security "checks" (really mostly electronic transfers) don't go out, it will be because President Barack Obama chooses not to let them go out.
Hurst also threw in this whopper at the end of this report:
Obama needs Congress to approve an increase in the government's borrowing authority, in the past increases have been routine, but Republicans, citing the giant U.S. deficit, have demanded huge spending cuts as a condition for approving the increase.
Uh, dude, just four years ago, in mid-March 2006, the Senate vote to increase the debt limit was 52-48. Every Democrat, including Barack Obama and Harry Reid, and three Republicans (Burns, Coburn, and Ensign) voted "No." Vice President Dick Cheney was on hand in case he was needed to break a tie. Hardly routine, Mr. Hurst, and your "increases have been routine" statement allowed for no exceptions. What's really "routine" is watching the AP miscast current events while rewriting history, which seems to be the wire service's two primary missions these days.
Cross-posted at BizzyBlog.com.
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Comments
The lede on the AP story
Submitted by celator on Sun, 07/31/2011 - 5:12pm.
The lede on the AP story published after this bill is passed and signed will be something like:
"President Obama and Democrats have heroically and successfully fought off attempts by the evil Republicans to destroy the United States. Some Washington insiders say that Republicans, including Tea Party members, are planning to apologize to the nation for their erratic and destructive behavior of recent months. The President, showing his big and generous heart, has said that he will accept their apology if it is sincere."
Something along those lines. Or even worse.
Past debt limit increases were routine?
Submitted by drsamherman on Sun, 07/31/2011 - 5:13pm.
I wonder how the colorectal surgeon will manage Hurst's rectocranial impaction.
I have to say........
Submitted by GregE on Sun, 07/31/2011 - 9:12pm.
....that's GREAT! LOL
The way this whole thing is
Submitted by Dan The Man 2 on Sun, 07/31/2011 - 6:39pm.
The way this whole thing is going down is worrying me. I say we hold out now for nothing les than a huge cut in spending and a short term fix.
Blazing Saddles
Submitted by Richard.Halavais on Sun, 07/31/2011 - 8:08pm.
Obama is like Cleavon Little (Bart) in Blazing Saddles when he points his own gun at his head and says:
[the Johnsons load their guns and point them at Bart. Bart then points his own pistol at his head]
Bart: [low voice] Hold it! Next man makes a move, the ni66er gets it!
Olson Johnson: Hold it, men. He's not bluffing.
Dr. Sam Johnson: Listen to him, men. He's just crazy enough to do it!
Bart: [low voice] Drop it! Or I swear I'll blow this ni66er's head all over this town!
Bart: [high-pitched voice] Oh, lo'dy, lo'd, he's desp'it! Do what he sayyyy, do what he sayyyy!
[Townspeople drop their guns. Bart jams the gun into his neck and drags himself through the crowd towards the station]
Harriet Johnson: Isn't anybody going to help that poor man?
Dr. Sam Johnson: Hush, Harriet! That's a sure way to get him killed!
Bart: [high-pitched voice] Oooh! He'p me, he'p me! Somebody he'p me! He'p me! He'p me! He'p me!
Bart: [low voice] Shut up!
[Bart places his hand over his own mouth, then drags himself through the door into his office]
Bart: Ooh, baby, you are so talented!
[looks into the camera]
Bart: And they are so *dumb*!
And WE ARE SO DUMB!!!!
There is no crisis, there is no threat of defaulting on our debt. It's all a junkie ploy to get at and steal more of our money and Republican so-called leaders are falling for it like water over Niagara Falls. Guys, Obama and his administration are junkies looking for their next fix of our money and they will. and are, lie, cheat and steal to get it. The ONLY WAY to strop a junkie is cold turkey, no more money, NO MORE MONEY. Obama is cut off and like all junkies he'll threaten us with anything to get his way but in the end he'll get the shakes and go into withdrawal and hopefully pass out and stop doing near fatal damage to our country.
Yes there is the fact that we
Submitted by Dan The Man 2 on Sun, 07/31/2011 - 8:38pm.
Yes there is the fact that we need to stop spending and cut programs.
Lies, lies, and damn lies.
Submitted by Kansasgirl on Sun, 07/31/2011 - 9:22pm.
I'm with Joe Wilson, O is a lying liar. I've never been one to "hate", but i'm getting close.
well apparently it's all
Submitted by motherbelt on Sun, 07/31/2011 - 11:27pm.
well apparently it's all over, the problem is solved; they have a "deal." (Via Drudge)
A deal that cuts $1 trillion over 10 years.
This is such a crock of B as in B, S as in S!
All spending cuts can be rescinded in the next budget!
Does anyone really believe any of these cuts will last 10 years? Who do they think they're kidding?
I'm sick of the lot of them.
There is NO way out. We are screwed.
I have little hope for this country, and I weep for my grandchildren.
Sorry for the depressing rant. I'm going to bed now. And things won't look better in the morning.
Doesn't matter, All that
Submitted by LAM SON 719 on Sun, 07/31/2011 - 11:27pm.
Doesn't matter, All that matters is that once again the GOP caved-in to obama in exchange for imginary budget cuts. The GOP does nothing but grovel at obama's ass, fearfully praying that they will have a chance to eat before he flushes.
Every incumbent republican needs to go.They are all self-serving cowards.
"...nastiest partisan fights seen in recent memory."... Uh Duhhh
Submitted by acaiguana on Mon, 08/01/2011 - 6:21am.
Health Care?
Hurst - here's the truth. I know this has just gotta hurt, Hurst!
Instead of it ending one of the nastiest partisan fights in recent memory, the debt stuff apparently ended in one of the most ignorant and stupidest commentaries in recent history for the MSM.
That would be you, Sparky.
ACA
...
Quoted from: 'Acaiguana notes from the Underground' (Soon to be at theaters near you)
Doesn't matter, All that
Submitted by bagtree on Thu, 03/29/2012 - 5:38am.
Doesn't matter, All that matters is that once again the GOP caved-in to obama in exchange for imginary budget cuts. The GOP does nothing but grovel at obama's ass, fearfully praying that they will have a chance to eat before he flushes.
Every incumbent republican needs to go.They are all self-serving cowards.
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