GOP says pay China, Wall Street first — Social Security, Medicare, Veterans can wait till some other day

New Republican legislation in the House and Senate would force the U.S. government to reroute huge amounts of money to China and other creditors in the event that Congress fails to raise its debt ceiling…

If passed, Pat Toomey’s (R-PA) plan would require the government to cut large checks to foreign countries, and major financial institutions, before paying off its obligations to Social Security beneficiaries and other citizens owed money by the Treasury…

That’s where Toomey’s idea supposedly comes in. And yet, according to the Treasury Department, his plan wouldn’t actually avoid a default, or its catastrophic consequences.

“[T]his idea is unworkable,” said Deputy Treasury Secretary Neal Wolin in a statement. “It would not actually prevent default, since it would seek to protect only principal and interest payments, and not other legal obligations of the U.S., from non-payment. Adopting a policy that payments to investors should take precedence over other U.S. legal obligations would merely be default by another name, since the world would recognize it as a failure by the U.S. to stand behind its commitments.”

The full impact of an actual default is unclear, but Treasury, and independent experts have warned that it would among other consequences, cause an enormous loss of wealth among U.S. citizens. Under the circumstances, one would think that the government’s top priority would be ensuring that citizens owed money by the Treasury would take precedence over, say, foreign governments. But that wouldn’t be the case if Toomey and some House Republicans, including Republican Study Committee Chairman Jim Jordan (R-OH), get their way.

The Administration thinks such a policy would be tone deaf. “Such a policy would also be unacceptable to American servicemen and women, retirees, and all other Americans, who would rightly reject the notion that their payment has been deemed a lower priority by their government,” Wolin added…

I think it is a dreadful idea,” Sen. Kent Conrad (D-ND) told National Journal. “Basically what they are saying is, pay China first. Are we going to forget about the American public and the things that they need? Somehow they are secondary? And paying the Chinese and the Japanese is the first priority of this country..?

You have to be wearing blinders made of boiler plate to ignore how committed the Republican Party is to Big Oil and Big Money. Still, blatant butt-kissing like this is so contemptible. Couple it with Republican willingness to crap on the needs of ordinary citizens — rejecting any priority for social security or medicare payments, funding for veterans administration hospitals — puts their display of ethical corruption down lower than a snake’s belly.

Cripes. Rattlers in my neck of the prairie would be offended by being compared to Republicans.

3 thoughts on “GOP says pay China, Wall Street first — Social Security, Medicare, Veterans can wait till some other day

  1. Mary Lupin says:

    No surprises here. The Republicans have hated ordinary people for a long time. All their policies are designed around aristocratic protectionism. Eideard, you know that group that put land wealth ahead of land workers in an earlier post on the Royal couple’s trip to Canada? These are the same people reborn.

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