Thanks to the Fed, They Already Are Defaulting

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Thanks to the Fed, They Already Are Defaulting

The doomsday crowd claims that the sky will fall in if the Congress fails to raise the debt ceiling. If the ceiling isn’t raised, they say, the federal government will be forced to default on its debt payments, which apparently will then cause the sky to fall in.

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…

http://www.campaignforliberty.com/article.php?view=1427

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