Skip to comments.Why a U.S. Default Will be a Good Thing (or Why Default Terrifies Socialists)
Posted on 02/24/2012 9:36:31 AM PST by St_Thomas_Aquinas
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As the U.S. credit rating is downgraded again and again, somewhere this side of BBB-minus (the lowest "investment grade" rating) the markets will finally panic and decide that U.S. deficits can no longer be supported. That will make it impossible to sell enough Treasuries to finance America's debt burden.The sole reason that the Obama deficits might prove unsustainable is the Obama recession. Wealth isn't a fixed-size pie, although the left and their kissing cousins on the so-called extreme right believe that it is. Wealth comes from the transformation of materials (raw, or having gone through some steps or stages) into something useful and/or desired through the use of labor, technology, and energy.
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