I realize the default will not occur on the BS deadline, but we will either stop meeting our obligations or default. So what is the preferred plan of the aggrieved members of the board?
Kill off
•Department of Agriculture (USDA)
•Department of Commerce (DOC)
•Department of Education (ED)
•Department of Energy (DOE)
•Department of Health and Human Services (HHS)
•Department of Homeland Security (DHS)
•Department of Housing and Urban Development (HUD)
•Department of Labor (DOL)
•Department of Veterans Affairs (VA)
•Destory ATF, Foreign Aid, UN, NATO, pull most troops from Europe and Asia back home, and other Bravo Sierra agencies and bureaus as needed.
Every remaining department gets a haircut to the percentage needed to balance the budget.
No. The only way we will default will be if the government intentionally stops paying the interest on our debt.
Look at the numbers. Our debt service obligations are $20 billion per month. The Treasury takes in an average of $200 billion per month. You can pay the debt service and still have $180 billion per month left!
Will there need to be a lot of cuts? Sure. But the point is, the only way we will default is if it is intentional.
On the other hand, if we increase the debt ceiling by another $1 trillion, interest rates will rise and our debt service obligations on an even larger debt under a higher interest rate environment will be much more than $20 billion a month. How that is a good result is beyond me....