Marhefka Wrote:
Oct 05, 2013 7:34 AM
I'm afraid that I don't understand the talk about "default." The way I understand it is that if the debt ceiling is not raised, then we can't borrow more money. This is the same thing as a "balanced budget," isn't it? Under such a scenario, the government would collect about 200 billion every month. They would have to select where to spend the 200 billion. But, of course, the very first thing that must be paid is the interest on the national debt. I'll make a wild guess that that amount would be in the range of 20-30 billion. What is this article saying? That the interest won't be paid? This would be like eating the seed corn. My interpretation of this article is that the interest is not a "must pay" item. I shudder to think what would happen under such a scenario. It would make Greece seem like a Sunday School Picnic.