[GOPJ]

If interest rates should return to their 1982 levels — there’s no reason to think they’re on the verge of doing so, but there’s also no reason to think that it is impossible — then we’ll be paying $2.6 trillion a year in interest payments alone. That’s 84 percent of the taxes the federal government will collect this year.

What Kevin D. Williamson doesn't tell us is where do we go to 'declare bankrupcy' and who do we 'default' on? The Chinese have loaned us money... do we refuse to pay them back because 'we've been to some secret bankruptcy court? It's insane.

Or do we default on the money we've held by the American people? Tell them 'the Treasuries they've bought and earn interest on are now worthless?' Gimme a break.

The next time the United States needs money WHO WILL LOAN TO US? NO ONE.

If we default we lose reserve currency status.. we'll be the same as Haiti - won't be able to 'inflate' our money because no one will be holding our dollars but us. Haiti can't 'print more money' to ease their debt because they're financial losers. That's what Kevin D. Williamson wants to turn us into... Some black loser country... this is almost too stupid to comment on.

[ctdonath2]

You say that as if not defaulting is an option.
If you can’t make the interest payments, or seriously inflate the currency to cheat at doing so, you default.

[DHerion]

Not true. Countries go bankrupt and soon people are lining up to loan/invest money in them. We are going to lose our reserve currency status at some point and that will not turn us into Haiti...no other country has reserve currency status and many are very wealthy. I would argue it would be a good thing to lose that status as it would compel us, and the government, to live within our means. Lots of short term pain, but in the long run we’ll be better off.