This weekend’s edition of Fox News Sunday had a segment wherein the host, Chris Wallace, interviewed Treasury Secretary Jack Lew. In the course of the interview Wallace addressed the government shutdown and the approaching debt ceiling crisis with this phony premise:
“This week both you and the president seemed to be trying to panic the markets about both raising the debt ceiling and the government shutdown, saying that they should be more concerned.”
In fact, President Obama merely observed what every credible economist has said about the prospect of the United States defaulting on its financial obligations. It would throw the world economy into turmoil and inflate the U.S. debt by billions due to higher interest rates. Just the threat of taking such an irresponsible step would panic the market without Obama having to say a word. And Obama is not the only one who thinks so. Here is what the GOP’s sainted Ronald Reagan had to say about it back on September 26, 1987:
Reagan: Congress consistently brings the Government to the edge of default before facing its responsibility. This brinkmanship threatens the holders of government bonds and those who rely on Social Security and veterans benefits. Interest rates would skyrocket, instability would occur in financial markets, and the Federal deficit would soar. The United States has a special responsibility to itself and the world to meet its obligations. It means we have a well-earned reputation for reliability and credibility – two things that set us apart from much of the world.
The hypocrisy of the Tea Party Republicans pretending to care about impacting the financial markets is monumental. Their own words (not to mention their actions) have been far more threatening than anything Obama has said. They have been saying for five years that Obama and his Marxist policies would bring the nation to ruin. They said he would destroy the economy and the country; that ObamaCare would bankrupt the nation and lead to civil war; that asking the rich to pay a little more in taxes, rather than putting the burden on the poor and middle class, would crush the recovery; that anything the President ever proposed would be a job killer and a disincentive to investment.
Those predictions were about as accurate as last year’s Mayan end-of-the-world prophecy. The stock market is higher now than it was before the recession. The unemployment rate has dropped from 10.1 to 7.3 percent. And ObamaCare has proved to so popular that the demand crashed the government servers. Given the right’s record on forecasting the future, how can anyone take them seriously? Even the words of their idol, Reagan, don’t seem to diffuse their rabid Obama Derangement Syndrome.