No Risk of Default

My Harvard colleague Martin Feldstein writes me inwards an email:

The WSJ in addition to FT expire on to write close the run a jeopardy of default, quoting the Treasury, Boehner in addition to others.There actually is no involve for a default on the debt fifty-fifty if the debt ceiling is non raised afterwards this month. The U.S. of A. authorities collects plenty inwards taxes each calendar month to finance the involvement on the debt, etc. The authorities may non live able to dissever all accounts into "pay" in addition to "no pay" groups simply it tin hand the axe for sure lay the involvement payments. An inability to borrow would convey serious economical consequences if it lasted for whatsoever sustained menstruation simply it would non convey to threaten our credit standing.

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