{"id":18806,"date":"2011-04-20T01:01:01","date_gmt":"2011-07-20T00:21:01","guid":{"rendered":""},"modified":"2011-07-20T00:21:01","modified_gmt":"2011-07-20T00:21:01","slug":"don_t_buy_it_the_sky_won_t_fall_if_we_don_t_raise_the_debt_ceiling","status":"publish","type":"post","link":"https:\/\/www.rushlimbaugh.com\/daily\/2011\/04\/20\/don_t_buy_it_the_sky_won_t_fall_if_we_don_t_raise_the_debt_ceiling\/","title":{"rendered":"Don\u2019t Buy It: The Sky Won\u2019t Fall If We Don\u2019t Raise the Debt Ceiling"},"content":{"rendered":"
\n

RUSH: Michael in Villa Grove, Illinois. Welcome, you\u2019re up next. It\u2019s great to have you here on the EIB Network.<\/p>\n

CALLER: The honor is mine, Rush. I appreciate you taking my call.<\/p>\n

RUSH: Thank you, sir.<\/p>\n

CALLER: I keep hearing that if the US doesn\u2019t raise the debt ceiling we will default on our loans. Now, I definitely agree with you that there\u2019s hardly any chance that we would default, but should that happen what actually happens? I know our AAA credit rating would probably go down, and we\u2019d have a much higher interest rate if we borrowed money in the future, but what can actually happen? If we default on our home loan, then the bank can foreclose on our home and take our home, right? But what happens in this case?<\/p>\n

RUSH: Yeah, but we can\u2019t. Here\u2019s the point. It\u2019s a scare tactic. It really isn\u2019t possible. There is always money coming in. The government can count on tax revenue from any number of sources and activities. There will always be money coming in. They can always print money. This default business is a straw dog. It\u2019s a straw man they\u2019re throwing out there to you. You want to know what the actual manifestations of an official default would be?<\/p>\n

CALLER: Yeah, absolutely, because just looking in recent history we were listening to the media and they were talking about how bad the government shutdown would be.<\/p>\n

RUSH: All it means is, we won\u2019t be able to borrow any more. That\u2019s all it means. All it means is: We\u2019ve gotta live within our means.<\/p>\n

CALLER: I don\u2019t think that would be too bad, then.<\/p>\n

RUSH: No, it\u2019s not! I shocked a lot of people yesterday when I said, “Not raising the debt limit is an option.” Who\u2019s to say it\u2019s not? Look, we sit here, the Tea Party gets mobilized and causes huge election results in November predicated on reducing debt — which means stop spending. At some point we have to! Okay, here\u2019s a chance: We gotta raise the debt ceiling. Why is it automatic we have to raise the debt ceiling? Why is it automatic we have to keep spending? All we would have to do is to reduce spending to current revenue levels. That\u2019s what everybody else does! <\/p>\n

We\u2019re being prepped here for another calamity, apocalypse just like they did with TARP and the auto companies and everything else — and it will probably work. They tried it with the government shutdown. But the debt ceiling is just a de facto Balanced Budget Amendment, is what it is. The debt ceiling says, “You can\u2019t borrow any more than this.” That means the government has to live within that level of debt. Well, to a lot of people, it\u2019s plenty high. It\u2019s plenty high enough for us to be able to live with — and, of course, at some point we are going to have to stop this. Everybody talking about this has got to realize that it\u2019s not just words. At some point there has to be some actual realistic behavior associated with the words here. <\/p>\n

But even if, even if this was in default that you asked me about which results in our inability to borrow any more money, that still is months away from not lifting the debt ceiling. It\u2019s simply… It\u2019s not something imminent. There is no apocalypse here. There was no apocalypse with TARP. There was no, “My gosh, we gotta act in 24 hours or the whole world financial system will collapse!” That\u2019s the way they get what they want. It\u2019s the way they\u2019ve been operating — well, the Democrats, forever, but in the recent context — the last three to four years.<\/p>\n

That\u2019s how we\u2019ve ended up where we are is being told that we\u2019ve got to allow — stand by and let — this outrageous emergency spending take place, otherwise it\u2019s all over for all of us. When it was not going to be all over. There was no apocalypse for not bailing out GM. Speaking of bailing out GM, now Obama\u2019s selling GM stock at an $11 billion loss to the taxpayers. He\u2019s getting that out of the way before the reelection campaign starts. You know, every state has to live within its budget. They can\u2019t print money, and if it gets so bad that people won\u2019t lend the state any money, what happens to the state? They keep functioning. There\u2019s no reason to be talked into a panic over this. <\/p>\n

The sky\u2019s gonna still be blue if we don\u2019t raise the debt ceiling.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Patrick, Albuquerque, New Mexico. Hello, sir. Rush Limbaugh. The EIB Network welcomes you here.<\/p>\n

CALLER: Rush, how are you today?<\/p>\n

RUSH: Very good.<\/p>\n

CALLER: Good. Hey, longtime listener, first-time caller. I just had a real quick question. You were talking about how it might take a catastrophe to raise the debt ceiling, and my question to you would be: How would the government use, say, a Japan-style catastrophe that would happen here on the continental states? Would that be a case to easily raise the debt ceiling?<\/p>\n

RUSH: Wait. It might take a catastrophe to raise the debt ceiling? I didn\u2019t say that.<\/p>\n

CALLER: I think you said something like that. (giggles)<\/p>\n

RUSH: What I said about the debt ceiling is it\u2019s not the apocalypse if we don\u2019t, but I didn\u2019t say it would require one. It won\u2019t require one.<\/p>\n

CALLER: Well, I guess —<\/p>\n

RUSH: I mean the —<\/p>\n

CALLER: — I was saying how would they use that? How would the government use that to raise the ceiling?<\/p>\n

RUSH: What, an earthquake with nuclear ramifications here?<\/p>\n

CALLER: Possibly, or any kind of 300 to 400 to $500 billion… you know?<\/p>\n

RUSH: I\u2019m not sure I get that. None of that\u2019s gonna be necessary. Obama is just gonna get up one day and raise it, he\u2019s not gonna need an event to happen. In fact, most of them — the vast majority of Republicans and Democrats — are already resigned to raising it. The Republican position is, “We\u2019re gonna get some cuts! We\u2019re gonna get some significant budget cuts in exchange for our vote to raise it.” Unless I\u2019m misunderstanding something, I think the catastrophic event you\u2019re talking about would be something that would cause us not to raise it. <\/p>\n

It\u2019s gonna require something catastrophic for it not to be raised. The mature among us know it\u2019s gonna go up. We\u2019re gonna raise the debt ceiling. That\u2019s a fait accompli. I just don\u2019t think it needs to be! I think an option of not raising it exists, but you could probably put me and the people who think this way in a thimble (a large thimble but still a thimble). There aren\u2019t that many of us. But I think conventional wisdom is it\u2019s gotta go up. The conventional wisdom is it has gonna go up. The question remains: Just how tough are the Republicans going to be in demanding concessions in spending that it goes up? Thanks, Patrick, for the phone call.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: I want to remind you of some things that were a reality in 2008 as we talk about this debt ceiling business because I know that I am one of the few people who would make the claim that we don\u2019t need to raise the debt ceiling. It\u2019s such conventional wisdom. “It\u2019s gotta go up, why, the United States will default, why, the United States has to be able to spend money.” It won\u2019t stop us from spending money. I\u2019m told that there\u2019s 90 days of unspent money elsewhere in the budget that would cover 90 days, and even at that there\u2019s still revenue coming in. But it\u2019s all about how this is sold. It\u2019s identical to 2008, 2008, apocalypse. Remember in 2008 the way they got to us was the subprime business and it was in trouble but who was hurting? The Wall Street people were hurting in subprime, that\u2019s who had to be bailed out, not us. They asked us to bail them out and they did it by creating this notion that the world financial system would collapse. <\/p>\n

But if you will remember back when this subprime stuff became top drawer news and we were talking about it in relationship to this apocalypse, 95% of people who had mortgages were paying them. There was not a crisis in the mortgage market. There were not people defaulting on their mortgages. Ninety-five percent of the people who had \u2019em were paying them. There was any number of things we could have done, but no, what do we do? We ended up co-opting McCain and Bush, and who did we bail out? We bailed out people who in a vast majority of numbers voted for Obama. We bailed out high finance execs on Wall Street, easily majority of whom voted for Obama. Remember I was joking back then about, well, the reason Paulson\u2019s doing this is he\u2019s gotta make sure his buddies don\u2019t lose their vacation homes in the Hamptons. Folks, that was damn near close to right. It was damn near close to what was going on. A bunch of highfalutin, high rolling people got themselves in trouble in this subprime business. You can trace it back to the government forcing them into this position with the Community Redevelopment Act and all that, still the reality on the ground was that that\u2019s who we were bailing out. Paulson was protecting his buddies. <\/p>\n

The same thing is happening now. There are people, I don\u2019t want to mention names \u2019cause I want to show up here tomorrow, but there are people, you\u2019d know the names, their financial portfolios benefit from a declining American strength. Some of them are Republican. Some of them are Democrats. They don\u2019t define themselves as — hell, we bailed out General Electric, for crying out loud. We bailed out General Motors. We bailed out the UAW, all of this while we supposedly had an apocalypse on the other side of it. If we didn\u2019t bail out GM, if we didn\u2019t do TARP, if we didn\u2019t bail out all this the world financial system was gonna collapse. None of that was true, and the same scare tactic, the same technique is being ginned up now on the debt ceiling. There is no default imminent if we don\u2019t raise the debt ceiling. This is a major moment for our cause. We sit here and say we\u2019ve got to stop this spending, we have got to reverse it. Here we go, debt ceiling, call a halt to it. The idea that we\u2019re out of money is ridiculous. We\u2019re not.<\/p>\n

END TRANSCRIPT<\/p>\n

*Note: Links to content outside RushLimbaugh.com usually become inactive over time.<\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: Michael in Villa Grove, Illinois. Welcome, you\u2019re up next. It\u2019s great to have you here on the EIB Network. CALLER: The honor is mine, Rush. I appreciate you taking my call. RUSH: Thank you, sir. CALLER: I keep hearing that if the US doesn\u2019t raise the debt ceiling we will default on our loans. 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Welcome, you\u2019re up next. It\u2019s great to have you here on the EIB Network. CALLER: The honor is mine, Rush. I appreciate you taking my call. RUSH: Thank you, sir. CALLER: I keep hearing that if the US doesn\u2019t raise the debt ceiling we will default on our loans. 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