Thanks; Blomberg / By the Editors October 06, 2013 6:00 PM
EDT The global economy is facing a bizarre
man-made threat: Radical legislators in the U.S., issuer of the
world’s most trusted currency, think forcing the government to
renege on its obligations would be a good way to shock it into
recognizing the error of its fiscally imprudent ways.
Lest anyone take this notion seriously,
here’s what would happen if that threat were carried out. To keep
spending, the government needs Congress to pass a spending law.
Republicans have already blocked this, resulting in a partial
government shutdown. Now they are threatening the separate and much
more disruptive step of refusing to raise the federal debt ceiling,
currently set at $16.7 trillion. Spending exceeds revenue, so
without permission to borrow more, the government can’t pay its
bills even if a law to allow spending goes through. If the debt
View original post 679 more words