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Debt Limit, the GOP, and Picking the Right Fight

Bill258 Wrote: Jan 19, 2013 9:23 AM
Not increasing the debt limit does not mean the U.S. will default on outstanding Treasury bills, notes and bonds. In fiscal year 2012, federal receipts were $2449 billion, 6.8 times the $360 billion interest on Treasuries. There is plenty of money to pay the interest. As existing Treasuries are about to mature, print and sell more Treasuries for the same amount to retire the maturing ones. The national debt will remain the same without a default. newsandopinions dot net
ppotts Wrote: Jan 19, 2013 3:03 PM
yup and The GOP just said, not to worry about old people on social security not getting their checks, those will go out as scheduled no matter whether they stop the debt limit or not. The first thing Obama always says is your social security will be delayed. I have heard him use this threat of terror on retired america twice now. I would like to slap his face.

In an ideal world, Congress would not raise the debt limit.

This would force – automatically and immediately – a balanced budget. More important, it would produce a meaningful reduction in the burden of government spending.

And contrary to hyperbole from defenders of the status quo, it doesn’t mean default since the federal government collects about ten times as much revenue as needed to pay interest on the debt.

But even though that seems like a fantasy outcome for people like me from the Cato Institute, I actually...