Obama's Default Drama - No Way To Run A Country
From Streettalk Off The Street
January 10, 2013 - 2:08pm
January 10, 2013
By: Caroline Baum
The United States of America isn’t going to default on its debt, even if Congress doesn’t increase the statutory borrowing authority in the next couple of months. Everyone in Washington knows, or should know, this. Any assertions to the contrary are tantamount to -- perish the thought! -- playing politics with the debt ceiling.
This is the second time in less than two years that the nation finds itself at this juncture, with Republicans in Congress threatening to hold the debt ceiling hostage. Some lawmakers are willing to shut down the government in order to pressure President Barack Obama to agree to spending cuts.
A shutdown is certainly possible. A debt default? Not gonna happen.
Why? Because the income taxes withheld from most of our paychecks each month exceed the interest the Treasury owes on its debt outstanding. In...Continue reading this article »