Is Tea Party right about default?

The Tea Party Movement Party Pictures, Images and Photos
The United States is hurling itself toward defaulting on its debts. I say hurling ‘itself’ because they can easily afford to pay their debt if they simply raise their debt ceiling (a simple vote in Congress) and issue bonds so they can continue borrowing (normal course of business action). However, the far-right Tea Party members in the House of Representatives seem to favour a default. Actually, they believe that the August 2 deadline the White House has mentioned is not a real default deadline. They believe that August 2 represents the day that the government will simply have to prioritize which bills will get paid and which ones will have to wait. So are they right about the default?

Surprisingly yes. Unfortunately, what they are not telling everyone is that going down this path will give all Americans a new tax, which is exactly what they are all against. If the U.S. fails to raise the debt limit and improve the long term debt outlook, then their credit rating will drop which will increase interest rates. This will make loans, mortgages and credit cards more expensive. Basically a new tax.

Even worse, the Tea Party has much more ominous plans they are not sharing. Although they are a minority of Americans and probably even a minority of Republicans, their strategy is aimed at making all government policy. They hate the EPA (Environmental Protection Agency), among other government agencies. If the U.S. government must choose between the various services to fund, the EPA and other agencies that the Tea Party hates will be among the first to have their payments stalled. Essentially, this moves decisions from the President to the Tea Party. It sets an awful precedent that will make the future of the U.S. government very unstable and even more dysfunctional.

The Tea Party must be elected out of government ASAP or the United Stated and the world will suffer the consequences.