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Originally Posted by saltwn
The United States has had some sort of legislative limit on debt since 1917.
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But what is the fundamental point of our having a debt ceiling, if it is
not to act as a restraint upon spending?
Quote:
Originally Posted by saltwn
The United States has never reached the point of default where Treasury is incapable of paying its debt obligations. If this situation were to occur, it is unclear whether Treasury would be able to prioritize payments on debt to avoid a default on its debt obligations, but it would at least have to default on some of its non-debt obligations.
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The only thing that is "unclear" to me, in this regard, is whether President Obama and Senate Majority Leader Reid would wish to inflict as much pain as possible upon the American people, by refusing to prioritize, in order to try to score a few cheap, political points...
Quote:
Originally Posted by saltwn
A default could trigger a variety of economic problems including a financial crisis and a decline in output that would put the country into a recession.
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There would be no
default, unless it was orchestrated by Obama, Reid & Company, for partisan, political purposes...