The Federal Government Can’t, and Won’t, Default on Its Debt Obligations

"So what will actually happen if Congress doesn’t increase the debt ceiling by approximately October 17? The government’s debt obligations will be paid, but reductions in other spending will start to become necessary. In effect, leaving the debt ceiling as is would function as a spending cut. This is why the Democrats hate the idea so much. They know there is zero chance of default, but they are horrified at the prospect that voters and taxpayers may find out that there is a relatively simple way to bring about spending reductions that would create, in effect, a balanced budget. Hence the hysteria.

 

So next time you hear hysterical talk about default on the news, remember that those who raise the default specter either have no idea what they are talking about, or are trying to fool the uninformed."

[Power Line]