If we defaulted on the national debt we wouldn’t be able to borrow any more money.
and that is a disaster because?.....
We are going to default—the only question is when and how.
After that the government will be substantially reduced in size and will have a balanced budget.
Win. Win.
It would be better to have a plan to get from here to there—but that is really asking a bit much from the folks inside the beltway who love to spend other people’s money. So we will do it the “modern” way—accelerating as we crash into the wall—and then announcing that it was “unexpected”.
The first option I see is spending cuts followed by elimination of interest payments to the Federal Reserve.
The sooner we get this over with, the better...before it’s 20 trillion.
If the debt ceiling is not raised then spending plateaus out. It’s not like we can’t get along with just a measley 14 trillion.
Gotta start thinking of all those incidentals we can’t afford.
Or, Democrats and the GOP will declare an emergency, and suspend ‘parts’ of the Constitution. ‘Technical parts’.
( well, Ok, so they skip the public declare part. )
Stop the insanity. Default and rebuild. We are way past due for a Federal Bankruptcy.
It does seem that way doesn’t it?
This statement that we would “default” simply isn’t true. We would go on a pay as you go system where we paid the interest on the national debt first then for defense then for medicare then for social security then everything else. Month by month.
It’s the answer to the question, “How do you keep a Rhino from charging?”
What grows out of that collapse could be better, or it could start a dark age.