Debt limit remedy gives fiscal hawks leverage

posted by
February 20, 2011
Cato Institute
by Daniel J. Mitchell  
Posted in Commentary

"If neither side budges, and the debt ceiling remains fixed, some people worry this might lead to a default by the U.S. government. More specifically, they're concerned that the inability to issue debt would compromise the Treasury Department's ability to make scheduled payments to bondholders. ... This seems like an overblown fear. After all, the federal government is expected to collect more than $2.1 trillion of tax revenue this year, while interest payments on the publicly held debt will only be about $200 billion." (02/18/11)

http://www.cato.org/pub_display.php?pub_id=12801  

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