from: Skip Gorham In 1979 Republicans were able to attach an amendment to the Debt Ceiling that would have required a balanced budget amendment to the Constitution in order to pass. They brought us right to the edge of default, and at the last minute conceded to minor compromises, and the debt ceiling was raised. Only problem was that they waited too late. By the time things were put back in order, several Treasury Bond payments owed by the US went out a week late. The bond-holders sued the US for the lost interest on on those payments, and in the end an agreement was reached. Because we defaulted for that one week, T-Bill interest rates were raised by 60 points, or about 0.5%. Over the course of the next 10 years, that bluff by Republicans that took us to the edge of default, with no discernible political gains made by either party ended up adding about 12 Billion dollars to the debt. So, we know what will happen when we mess with the debt ceiling. Its happened before. Fiscally conservative anyone? I find the entire exercise the height of hypocrisy.
Posted on: Tue, 15 Oct 2013 18:24:57 +0000
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