Replies

You don’t have the money to pay the principle. You have ZERO dollars in you bank. How do you pay the note? You can’t... You are suggesting we can use check kiting to cover our debts.

How is rolling over the debt "check kiting"? If it is, then we have been kiting checks for a very long time. This is merely a question of the debt ceiling, not whether we pay off our debts.

And, as I stated earlier, if the debt is even reasonably staggered, we don't even run into the issue of temporarily exceeding the debt ceiling due to the non-instantaneous nature of the transfers.

And where do you get "rubber checks" from? The money we pay back the principle with is no different whatsoever from money we have been paying back the principle with, for years. We have been borrowing money to repay principle for a long time. Are you seriously meaning that our checks will bounce? That is what a rubber check is, after all. I see no reason at all that they would, any more than any of our previous checks have bounced.

The debt ceiling is an arbitrary number that has no bearing on rolling over our debt. If people view us as AAA one day, and Argentina the next, because we are imposing some kind of fiscal discipline, then they are morons. But they aren't, and they will recognize that the US is no closer to default than before, and may actually be further, simply because we are at least starting to impose this fiscal discipline.

It is the McConnells of the world (if he is not playing some kind of rope-a-dope), that will lead us to Argentina-ville. We must NOT raise the debt ceiling, if we want to avoid that fate.

And, as I stated earlier, if the debt is even reasonably staggered, we don't even run into the issue of temporarily exceeding the debt ceiling due to the non-instantaneous nature of the transfers.

The debt is not "reasonably staggered". We have $474B to pay from Aug 3-31. We have about $175B in income coming in. We have NO savings. It will be day to day, and early in the month we we default.

These are not trivial sums. There is no provision in international banking or the bond market for "letting it slide a little bit". It's not a nice local credit union that can give you a few days grace period because you've had an account there for 20 years and they know you'll make it up.

You fail, you FAIL.