Elizabeth Warren’s Brilliant and Stern Warning Against a Possible U.S. Default

e-warrenI really can’t say enough how much I’ve come to admire Massachusetts Senator Elizabeth Warren.  While I’m sure Republicans can’t stand her, I really believe she’s the exact type of politician Washington has needed for a very long time.  Sure, she’s obviously a Democrat and believes in a more liberal ideological set of beliefs, but she also uses common sense.  Something many in Washington seem incapable of doing.

Well, speaking on the possibility of Congress not raising the debt ceiling and defaulting on our debt, Senator Warren didn’t mince words:

“We’re in this position for one reason, and one reason only: Congress told the government to spend more money than we have.  Congress told the Treasury to run up our debt to pay for it.  But now Congress is threatening to run out on the bill.  If that strikes you as bizarre, then you are not alone.”

Republicans in Congress act as if they had nothing to do with our national debt, when in fact they have more to do with it than anyone.  Reagan, the so-called “fiscally conservative hero,” was the first real catalyst who began running up our debt.  George H.W. Bush had a fairly decent increase during his 4 years in the White House, and while our national debt increased while Clinton was president, he left office with a balanced budget and a surplus.

Our debt didn’t get really out of hand until Gorge W. Bush became president and Republicans mostly controlled Congress.  These policies also lead to our economic collapse, which then triggered even more spending during President Obama’s first term.

That’s what happens when you start two wars without having any way to pay for them, while at the same time you massively cut taxes and deregulate financial industries which are typically known for rampant greed and corruption.

And Republicans want to call themselves the party of “fiscal responsibility?”  Please.

Warren also reiterated that default was not an option.  She was referring to the comments made by some Congressional Republicans that a default isn’t that big of a deal, or that there’s really no such thing as a “debt ceiling.” 

She also went on to call the idea supported by a few Republicans that somehow we could default on our debt without causing some kind of major financial calamity a “fantasy.”

“If we default on our debt, we could bring a worldwide recession on, a recession that would pummel hard-working middle-class people, people who lost their homes and jobs and retirement savings, who are barely getting back on their feet.  We are playing with the lives of every American, and it is not what the American people sent us here to do.  This is no time to act out dangerous fantasies.”

I believe the last line is a direct shot at the Republicans who seem to hope we default on our debt.

Warren spoke the basic truth about what’s going on and why we can’t allow our country to default on our debts, and her words should echo in the ears of every Republican who seems intent on playing dangerous games with the economy.

Because as she said, it’s bizarre for Congress to have ran up such a massive check, then stand there and say they’re refusing to make good on the payment.  As I’ve said many times before, the debt ceiling isn’t about new spending.  It’s about money we’ve already spent.

Congress approved this spending already, now it’s time for them to allow the government to pay our bills.

And as Senator Warren said, American lives are on the line.  It’s time these “don’t raise the debt ceiling” people stop living in their “fantasy” world and do their jobs by raising the debt ceiling and allowing our government to pay its bills on time.  Anything less would be irresponsible, dangerous and hurtful — and possibly lead us into worldwide economic catastrophe at a time when we seriously need to maintain some form of stability.

Allen Clifton

Allen Clifton is a native Texan who now lives in the Austin area. He has a degree in Political Science from Sam Houston State University. Allen is a co-founder of Forward Progressives and creator of the popular Right Off A Cliff column and Facebook page. Be sure to follow Allen on Twitter and Facebook, and subscribe to his channel on YouTube as well.

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  • bpnjensen

    Right on the nose, Allen. So-called Conservative economic policies have driven us into this nightmare, and as usual, and just like RIGHT NOW in California, it will take intelligent, sensible Democratic policies to dig us out.

    • Red47

      You might not want to use California as an example of economic intelligence. Just sayin’

  • Suzie

    They’ll, (GOP), do and say ANYTHING to make President Obama look bad. They are so afraid that the first black President, will go down in history as a good President. I think they really underestimated him, in his intelligence, determination to do the right thing, and his strength, and now THEY are the ones looking bad, not him.

  • Matthew Reece

    Refusing to raise the debt ceiling will not cause a default, for two reasons:
    1. The government can prioritize spending so that the interest on debt
    gets paid. Total spending would have to be cut immediately by about 30%,
    but this leaves enough to pay creditors.
    2. Imagine that you have a credit card with a 15% interest rate, and you tell your credit card company that you can’t pay your bill in fully valued money at 15% interest, so you will just pay it as though it has a 5% interest rate, and with debased money. This would be considered a default, just a softer one than declaring bankruptcy. The government is doing the same thing through Federal Reserve policies of currency debasement and keeping interest rates artificially low. The interest on debt would push the budget to the breaking point if the interest rate were near the historical level of 6% and the money were sound. By this measure, the default has already occurred.

  • Jared Puente

    Gorge W. Bush…pretty clever.

  • Red47

    If Warren said it, it must be true. (cough)