CHESSNOID

I blogged about this before in regards whether the US will default if the debt ceiling is not raised. From what I read and understand it simply will not. I am tired of the political rhetoric trying to scare us into thinking America will default on its bill. This is simply not true.

America has to only make the interest payment on the debt (which are US Treasuries) and we take in more than 10 times that amount in monthly tax revenues. As long as we pay the interest on the US Treasuries aka Federal Debt, then we will NOT default. That’s it and that’s the bottom line.

Netright Daily:

The Obama administration is pushing a lie–and a big one to boot. But when aren’t they pushing falsehoods for political gain?

The current mistruth from the Obama administration is about what would happen if the debt ceiling is not raised. They claim that if the debt ceiling is not raised that the U.S. would default on its debt. This is completely false. The U.S. would not default–rather, the U.S. Treasury would not be allowed to issue new debt.

“A big lie being perpetrated by the Obama Administration and mainstream media is that if Congress does not raise the $14.3 trillion national debt ceiling, the nation will default on its obligations. This is nothing more than a scare tactic. Just like a consumer credit limit, if the debt ceiling is reached, this will simply mean that the Treasury cannot issue new debt. The existing debt could still be refinanced, but interest owed on the debt would have to be paid out of revenue and the budget would also have to be balanced immediately. That is not a default.”

“The Obama Administration needs to stop lying about the debt ceiling, and level with the American people about the dire fiscal catastrophe the nation faces with a debt so large that it cannot be paid.”