That’s, of course, ridiculous. For one thing, just because the federal government isn’t permitted to add to its ever-soaring mountain of debt doesn’t mean that it will be forced to default on debt payments. With the $2.2 trillion it collects in tax revenues, it can give first priority to debt payments.
But let’s assume there is a default. Will the sky fall in, as the doomsayers claim?
Not likely. After all, thanks to the Federal Reserve the federal government is already defaulting on its debts — and has been for decades…