No Risk of Default

From: Martin Feldstein <mfeldstein39_at_gmail.com>
Date: Mon, 7 Oct 2013 16:43:28 -0400

The WSJ and FT continue to write about the risk of default, quoting the
Treasury, Boehner and others.

There really is no need for a default on the debt even if the debt ceiling
is not raised later this month.

The US government collects enough in taxes each month to finance the
interest on the debt, etc..

The government may not be able to separate all accounts into "pay" and "no
pay" groups but it can certainly identify the interest payments.

 An inability to borrow would have serious economic consequences if it
lasted for any sustained period but it would not have to threaten our
credit standing.

*I am sending this out as an email because it is too short for an op ed
piece and I am not a tweeter. *
Received on Mon Oct 07 2013 - 16:43:28 EDT