I was listening to the radio this morning and they had a finance guy on talking about the debt ceiling/default. Now, the station is a fairly conservative type talk radio AM station, Beck in the mornings and Limbaugh in the afternoon, and local Frantz in the evenings if there are no sports.
The finance guy said if we default, even for just 2 days, the impact will be worse than 2008. He explained that this is because the bonds become worthless paper.
How can we default when we take in ten times the revenue than the debt servicing costs? The only way we default is if Obama chooses to default. As President, he should be saying that we will never default.
They are already worthless paper. We have a President right now who is threatening not to honor them.
Bond default is a red herring. We will not default on our debt so long as tax revenues keep coming in. Until we reach the point of Greece where they are no longer sufficient to service our debt. Which WILL happen eventually if we stay on this path.
The only way we default now is if Obama CHOOSES to default.
He is capable of that surely. But I suspect he will abuse the Full Faith and Credit clause to make himself the hero and accrue more power for the Executive Branch.