eye95
Well-known member
Not unless the President chooses to do so--which he might.
On or about August 2, the debt ceiling will have been reached. Without an increase in the ceiling, the federal government will not be able to borrow money to pay its obligations and that which it chooses to do. It will still have tax revenues coming in. The numbers have been run. There will be enough money for debt service (avoiding default), to send out social security checks, and to keep the military functioning in its role--with money left over.
We will experience a partial government shut-down. The government will be forced to operate within revenues generated. Not raising the debt ceiling would have the effect of a Balanced Budget Amendment. The government will be forced to live within its means. That is good.
When will the media finally stop pushing the tax-borrow-and-spenders rhetoric that not raising the debt ceiling will result in default? It won't necessarily result in default. However, the president may use the inability to borrow as an excuse to cause a bigger crisis--one that won't be wasted--by choosing not to service the debt.
On or about August 2, the debt ceiling will have been reached. Without an increase in the ceiling, the federal government will not be able to borrow money to pay its obligations and that which it chooses to do. It will still have tax revenues coming in. The numbers have been run. There will be enough money for debt service (avoiding default), to send out social security checks, and to keep the military functioning in its role--with money left over.
We will experience a partial government shut-down. The government will be forced to operate within revenues generated. Not raising the debt ceiling would have the effect of a Balanced Budget Amendment. The government will be forced to live within its means. That is good.
When will the media finally stop pushing the tax-borrow-and-spenders rhetoric that not raising the debt ceiling will result in default? It won't necessarily result in default. However, the president may use the inability to borrow as an excuse to cause a bigger crisis--one that won't be wasted--by choosing not to service the debt.