Posted on 01/19/2023 9:38:11 AM PST by ChicagoConservative27
Senate Minority Leader Mitch McConnell (R-Ky.) said Thursday he is confident that the U.S. will never default on its debt and that he is not concerned a financial crisis could be on the horizon.
McConnell told reporters in his home state that while the push to raise the debt ceiling is “always a rather contentious effort,” he believes lawmakers will succeed at doing so before the Treasury exhausts its “extraordinary measures” in June.
“No, I would not be concerned about a financial crisis,” McConnell told a gaggle of reporters following an event at the University of Louisville to discuss disaster relief funding.
“In the end, I think the important thing to remember is that America must never default on its debt. It never has, and it never will,” he said. “We’ll end up in some kind of negotiation with the administration over what the circumstances or conditions under which the debt ceiling be raised.”
(Excerpt) Read more at thehill.com ...
Actually, the US defaulted on its debt several times in the past.
in 1792, the US Government stopped accepting the paper “Continentals” it issued to fund the Revolutionary War
In 1861, the US Treasury issued “Demand Notes” which were initially convertible to gold, but with a year, were deemed NOT valid for any payments to the US Government, nor conversion to gold
In 1863, the US Treasury issued unbacked “Greenbacks” which were used to pay government debts, soldiers, etc... The value vs. gold dropped quickly. After the Civil War, the US Treasury bought back greenbacks and greenback debt at a reduced rate. Thanks to US Grant and hard money advocates in the 1870s, and remaining greenbacks were redeemed into Gold.
In 1933, FDR defaulted by removing the promise to exchange US dollars for gold - and confiscated all gold held by the public
In 1971, Nixon defaulted on foreigners holding US dollars, removing the promise to pay them in gold.
So US Government default has a long, established history.
“Default” will come again soon, probably in the form of even higher inflation.
It already has defaulted on the Constitution and We The People old man.
Scumbucket
Already mostly done, friend, to all the govt employee/military/social security accounts
But next, they will have to come after private sector retirement and savings
https://www.thebalancemoney.com/who-owns-the-u-s-national-debt-3306124
He’s right. There will never be an actual default. The US federal government will do what all other governments do when they have insurmountable debts. They’ll inflate the currency to the stratosphere making it near worthless. Then they will repay their debts with worthless currency. That’s a constructive default, but not an actual default.
Of course doing this will impoverish many Americans but that’s what governments who are unable to control their spending always do.
The feds constantly mislead with the claim that if the debt ceiling isn’t raised, the government will grind to a halt and worst of all will default on the debt. That’s like saying that if an over-extended individual with a good income can’t get his maxed-out credit card limits raised then he will suddenly starve to death and be out in the street. The feds have plenty of cash flow, in the form of tax payments, fees, etc. Like the aforementioned individual, they don’t have an income problem, they have a SPENDING problem. And continuing to raise the limit on the federal “credit card” can do nothing but make things even worse. At some point (NOW) it has to stop and the government must be forced to prioritize its spending, which means that many pet programs will have to go away. The debt is now just exploding through an exponential upward spiral. It MUST be stopped, or we will quickly get to the point where the only thing that government can afford is interest payments on the debt.
I expect Fed.gov will return the favor by not honoring US Treasuries held by China, or simply seizing or "freezing" their US Assets just like they did with Russia.
Mr. Coco Chow says what?
Exactly, we need to put government on a payment plan.
There’s no reason to default on the debt. It’s easily backed by our natural resources. Worst comes to worst, sell Alaska.
The treasury will simply print more money. It’s easy when you can just make stuff up.
Because we own the printing press
I disagree. We're talking about 3 different parties: China, the U.S. government, and American bondholders (their heirs since the original bondholders are long dead). As far as the U.S. govt is concerned China doesn't owe them.
No, they’ll keep printing money until the dollar is insolvent.
“The Empire will end.
The only question is when.”
Soon, Ralph. SOON!
Never say Never, Senator Turtle.
It is doing so every day and has been for years.
Saudi’s floating being open to trading in other than dollars earlier this week. Once that shoe drops . . .
Sadly this PPS will be dead long after his work has destroyed our republic. Communit yhat he is
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