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Defaults are as much a matter of perception as of fact. Nobody blinked in 1979 because it was a technical glitch that did not reflect a lack of willingness to p
by CurtHagenlocher 13y ago
Defaults are as much a matter of perception as of fact. Nobody blinked in 1979 because it was a technical glitch that did not reflect a lack of willingness to pay. Refusing to increase the debt ceiling is tantamount to saying "we're not going to pay any more money," which is not generally the kind of thing that makes debtholders and potential future debtholders very comfortable.
- protomyth 13y agoNot raising the debt ceiling and defaulting are two separate issues. We make them one issue to scare people, but one can go on without the other. In fact, both parties over multiple times have passed bills to pay the debt service (the House did this time) without increasing the debt limit. 1979 is interesting because of all the run-up that led to the glitch. 2006 is basically a reverse of today's position.