*Unless the administration chooses to. This is ridiculous that a nation as advanced as ours spends all of its time talking about defaulting, as if it would absolutely happen if the debt ceiling isn't raised.
It's not true.
The government will still have cash on hand. The government will still be getting tax revenues(over $2 trillion a year). We will still be able to service our debt.
For a comparison, if you had a job that earns $250,000/year, and a credit card with $1,600,000 in debt, and your minimum payment on that card was $20,000/year... could you pay that interest without taking on more debt? Certainly, you would just have to use $20,000 of your $250,000 to do so. You might have to make cuts somewhere else.
But let's stop being ridiculous. Nobody is going to be forced to default.
If they don't raise the debt limit they will not pay debts as scheduled. That is called defaulting.
So yes, either they will raise the debt limit, or they will default--it is that simple.
The fact the US gov is in possession of other money does not mean they could legally use it to pay debts. This third option you suggest is illegal. They won't do it.
Why won't they pay debts as scheduled? It is the job of Congress and the Treasury to prioritize payments, and the debt is Constitutionally required to be paid. Since the Constitution is the highest law of the land, it would be illegal to default when they can afford to pay it.
Moody's released a memo this last week saying exactly that. The gov has enough money to pay it, and they are going to pay it.
There is nothing keeping them from paying it. If you think there is, I'll have to ask for a source.
They won't do it because it is illegal, and the government is not allowed to break the law in such a clear and overt way.
They also won't do it because it would talk a vote on a complicated bill to even try and make it happen. And if they could get a vote (even on a simple bill like raising the debt limit) we wouldn't be in this mess in the first place.
Why don't you read what I post? It's constitutionally required for us to pay our debts. It's illegal not to.
It's not illegal to pay it, no law can trump the constitution
The Democrats are fear-mongering on this issue. Even Moody's said it's not an issue.
While I agree that the debt limit is in some ways an arbitrary number that doesn't necessarily reflect our ability to pay or not pay our debts, let's not act like the right isn't fear mongering by refusing to immediately raise the debt ceiling.
by Susan Reid6 years ago
Best comment I've seen to date says (paraphrased):"I think the Congress should do this every day. They've got nothing better to do. And the economy's humming along and everything's swell here on the shining city on...
by Judy Specht4 years ago
If the government doesn't raise the debt limit we are going into default according to the mainstream media and the Democratic Party. Default according to the dictionary: a failure to make a payment (such as a...
by politicsdaylee7 years ago
OBAMAS BILL FOUND TO BE ILLEGALObama & Dems bill found to be illegal More than 100 law suits have been filed against this unconstitutional health care bill, The States and the people are fighting back. dems call it...
by Susan Reid6 years ago
From that bastion of lamestream liberalism, TIME. Mr. Klein puts it so darned well I couldn't resist posting the whole article. It's not very long. Enjoy!Oh, and as we all know, there WAS no vote today (Thursday). ...
by Harvey Stelman7 years ago
Our Politicians think they can. Tell me if you or the government can; and how?
by Kathryn L Hill6 months ago
"Reportedly, a large portion of the funds (from taxing soda-pop) will be used to expand Pre-K services." This quote is from the post found here: http://hubpages.com/health/forum/142214 … money-grab I am...
Copyright © 2018 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.