IS a national debt default?
If you’re interested, I would read the article.
But a “Default” is NOT catastrophic. Yes, bad things would happen. Interest rates, credit ratings, etc. But not catastrophic things. Here’s my understanding:
In general, a default would force Federal government to prioritize spending. There is plenty of money coming in each month to pay the interest as needed. And my understanding is that by law, that has to be the first item on the list. Then, naturally, defense. There is money for that.
But in that case, of course, it would mean that there is less money to pay for other things. Let’s just say that the generous funds for Nevada “Cowboy Poetry” might dry up.
That’s be a shame…
In fact, many people are hoping for a default. It would be kind of a de facto balanced budget amendment! I think that is a problematic idea, kind of cutting off your nose to spite your face. But I certainly understand the sentiment.
People are sick of the catastrophic spending. THAT is the problem. Which is why you never vote Democrat! I mean, Republicans have not been exemplary on this, but at least they have given nod to not spending like drunken sailors!