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6 Responses to “The Debt Ceiling and Default”

1. Reply

   Major_Freedom says:

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   Thank you very much for posting a simple, yet bafflingly misrepresented, explanation of the difference between debt ceilings and debt defaults.

2. Reply

   Gamble says:

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   But you see, they will choose default before they sale anything, make any cuts or stop the hideous practice of baseline budgeting. So really, they were not lying when they said failure to increase debt ceiling equates to default. They would rather sink the ship by default rather than take accept a meniscal trim.

   Removing Leeches
   1.Locate the head with a sucker attached to the wound. It will be the narrow end of leech’s body.
   2.Slide a sharp object or your fingernail under the sucker. Be quick, so the leech will not have time to vomit the blood back into your wound.
   3.Slide the body off with the same object or your fingernail.
   4.Quickly flick the leech away before it bites you again and reattaches!
   5.Treat the wound with wipes or soap and water; use the bandage to stop bleeding. Extra bleeding is normal because there are anti-clotting enzymes in the leech’s mouth

   • Reply

     Major_Freedom says:

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     “But you see, they will choose default before they sale anything, make any cuts or stop the hideous practice of baseline budgeting. So really, they were not lying when they said failure to increase debt ceiling equates to default. They would rather sink the ship by default rather than take accept a meniscal trim.”

     So if someone is mentally strange such that they choose to give their firstborn unnecessarily before they give their weekly garbage, then it is not wrong for someone to say that throwing away garbage “equates” to throwing away firstborns?

     • Reply

       Gamble says:

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       I don’ think there is an analogy.

       They hold all the cards, have all the power. They were willing to default( so they say) if we did not give them more debt( expansion via delayed taxation). I guess it was a type of black mail. Maybe Walter can defend their position?

       • Reply

         Major_Freedom says:

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         Even if that were so, it still isn’t a display of not raising the debt ceiling being in any way the same thing, or similar or equivalent to, debt default.

         It is an example of purposeful default for not getting what one wants in terms of spending.

3. Reply

   Ken P says:

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   Here’s an amusing approach: student loans could be used as collateral to borrow at the Federal Reserve overnight window. Not that I’m suggesting that.