OK. So let’s say we take obama at his word and the government will default.
And this would be a bad thing?
I guess the most immediate problem would be that no one would lend the USG additional money.
And this would be a bad thing?
And the government would have to spend no more than it took in.
And this would be a bad thing?
And the communist chinese and saudi arabia would be caught out with a lot of our devalued debt.
And this would be a bad thing?
And our political leadership, such as it is, would be forced to the consequences of it’s financial profligacy instead of pushing the problem onto future generations.
And this would be a bad thing?