The lying media, at it again

[trader4]

Just heard this outrageous lie on WABC the radio:

U.S. to pay down debt -- first time since 2007

UPI/Roger L. Wollenberg

Published: April 30, 2013 at 2:30 AM

"WASHINGTON, April 30 (UPI) -- Washington plans to pay down part of the national debt for the first time since before the global economic crisis, the Treasury Department said.

The government's ability to pay back $35 billion from April through June, by retiring bonds, notes and bills, comes from increased tax revenues and greater spending cuts, which are improving Washington's finances and helping the government ratchet down the deficit, the department said."

This is what journalism has come to in the USA. The press is supposed to be an important part of keeping govenment honest and the American people free. Instead, they've become nothing but mouthpieces and apologists for a big govt on the way to bankruptcy. Are they really this stupid or do they know this is pure crap, but repeat it anyway? There is a real story here. And that story is that when you're running a $900bil deficit for the year, just because you temporarily take in $35bil more during a three month perios, that does not equate to "paying down the debt".

[woger151]

On Wednesday, May 1, 2013 10:11:46 AM UTC-4, [e-mail] wrote: [snip]

A sovereign in control of its own fiat money can never go bankrupt.

The debt doesn't have to be paid down. The important things are that (a) the interest burden as a fraction of GDP doesn't run away exponentially, and (b) printing money doesn't cause hyperinflation.

"Paying down the debt" in the current economy would be unlearning all the lessons of the 1930s.

[nestork]

That's not a biased reporter, that's a lazy reporter. Too lazy to come up with their own wording. If they parrot the spokesman for the government department, of course they're going to sound like a government cheer leader.

What that reporter should also have mentioned is that 35 billion is peanuts compared to the 14 trillion dollar (IIRC) US National debt.

[trader4]

a) the interest burden as a fraction of GDP doesn't run away exponentially, and (b) printing money doesn't cause hyperinflation.

lessons of the 1930s.

No one is suggesting that they actually pay down the debt. Only that when you put out stories with the headline saying it's actually happening, when in truth you're running a $900bil deficit, it's another Obama lie.

[trader4]

It's not just that it's $35 bil. Even that is a gross distortion, because in the next quarter, they are again borrowing $230 bil. They are borrowing $900bil for the year!

Why not just borrow $1tril in January, then pay down the national debt by $10bil in Feb through Dec and claim that you've "paid down the debt" in 11 months straight?

[Ken]

The above sounds good as long as interest rates remain close to zero. What is going to happen when they go up?? I think you know the answer to that question.

[Malcom "Mal" Reynolds]

Because Obama controls what journalists print?