Moody’s offers different view on debt limit
Not so, Moodys says in the memo dated Oct. 7.
We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact, the memo says. The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasurys extraordinary measures to raise funds) and a default.
It is pretty simple.
“There is no direct connection between the debt limit (actually the exhaustion of the Treasurys extraordinary measures to raise funds) and a default.”
And how come I have not heard any Republican leaders expressing that fact.
Well honoring the debt and interest payments first would be the intelligent thing to do for any one who wanted to obey the constitution and do as little harm to the USA as possible.
Is there anyone here who thinks that the current POTUS cares about the constitution or protecting the USA economically?
Obama and the Democrats were hoping that the rise in revenue would be enough enable them to justify their projected levels of spending. Ironically, the sequester has made that half-way pausible.