The US will not default on it's debt

Posted by: Barthélemy Barbancourt

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The buzz this week within the GOP conference surrounded a 1985 GAO ruling that said, essentially, that the Treasury did have the right to prioritize interest payments over domestic spending.

This is a key tenet of the debt ceiling hawks, who claim there's no risk in not raising the ceiling, because the Treasury has plenty of revenue to pay off bondholders and avoid default.

But there was some debate about whether the 26-year old ruling still applies due to some changes in the law since then.

Well, the GAO believes it does. We hear that the GAO sent a message to Congress that the 85 ruling still applies, and nothing has changed in the statutes since then that would make it null and void. GAO attorneys signed off on it as well.

So within the GOP, this should be a shot in the arm to the hard right, now feeling fully confident that failure to raise the debt ceiling won't cause a crisis.

The next time you hear a liberal saying that the US would default if we don't raise the debt ceiling, you know that they are lying. The US takes in more than enough $$ to cover our interest expenses. If the debt ceiling isn't raised Congress would be forced to balance the budget, something liberals loved under Bill Clinton.
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written by Nobody , May 12, 2011

Timmy The Tax Cheat won't let us default. alot of the bonds go through Goldman Sachs of whitch he's the former CEO. A ton of the public unions have giant positions in US bonds in thier retirement accounts. Ain't gonna happen.

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