Only if the people and banks believe that. They don't. Our economy is stuck on "Lets pretend", and making real cuts would expose just how messed up the game is. Rather than do that, they will keep playing till it all falls apart.
The GOP didn't play this very well, and the NEED a psychiatrist on staff to help them predict how Obama will react. If he has narcissistic disorder, this is going to end very badly.
I've been pondering what might happen if he weren't to pay the debt service, and I'm not sure it's all bad.
The national debt exists largely to fund liberalism. It is a FEDERAL GOVERNMENT problem. Couldn't the fact that no one would be willing to buy further federal government debt have a silver lining?
Not paying the debt service of 23 billion with revenues of $200 billion would be clear grounds for impeachment of Obama.
Everything we on the right want to accomplish-- smaller government, the elimination of federal government departments like Commerce, Education, Agriculture, the EPA, etc., would be placed, by necessity, on the table. For the private sector, what could be bad about mass federal government layoffs? What federal government bureacrats do results in a net loss to the private sector economy, they add nothing to the bottom line.
I'm not sure that what goes on in the private sector is indelibly linked to whether the feds can borrow money for their programs or not.
Maybe this would be the equivalent of the donkey hitting itself on the head with the proverbial two-by-four?
“If he has narcissistic disorder, this is going to end very badly.”
Yeah and IF the Sun rises in the East tomorrow it will set in the West.