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February 3, 2016

OBAMA LIED, THE DEBT CEILING DIED: Veronique de Rugy reports for National Review.

Well, as it turns out, documents subpoenaed by the House Financial Services Committee reveal that during the 2013 debt ceiling debate, ”the Obama Administration is not only capable of prioritizing payments in case the nation’s borrowing authority is not raised, it has run ‘tabletop exercises’ to prepare for such a contingency – contradicting earlier public statements from Treasury officials.”

Here are some tidbits from the committee’s press release:

Made public for the first time, records turned over to the Committee in response to the subpoena show the Federal Reserve Bank of New York previously made plans to prioritize Social Security, veterans’ benefits, and principal and interest payments on the debt over other government obligations.

The Administration, however, directed the New York Fed to withhold this information from the Committee because “Treasury wants to maximize pressure on Congress by limiting communications about contingency planning,” according to a previously undisclosed internal email of the New York Fed….

Efforts by the Obama Administration to keep its contingency planning a secret were met with objections from officials at the Federal Reserve and the New York Fed, who described the approach in an email as “crazy, counter-productive, and add[ing] risk to an already risky situation.”

The next time someone accuses the GOP Congress of playing chicken with the economy, show them this link.