7/18/2011

New York Times reports as fact that failure to increase Debt Ceiling Means Default

Here is the first paragraph of a story for Monday's paper:

Top Republican lawmakers and the Obama administration’s budget director predicted Sunday that an agreement would be reached before the federal government defaults on its debt in early August, but both sides continued to squabble over the details of competing proposals, offering little evidence that a deal was at hand. . . . .


Here is the second paragraph:

“I do not believe that responsible leaders in Washington will force this to default,” Jacob J. Lew, the White House budget office chief said on the ABC News program “This Week.” “All of the leaders of Congress and the president have acknowledged that we must raise the debt limit. And the question is how.” . . .


No questions are every raised on why failure to raise the debt ceiling means a default will occur. Of course it won't since the interest payments are just a fraction of the revenue that will still be coming in.

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