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The U.S. Has REPEATEDLY Defaulted | Washington’s Blog

The U.S. Has REPEATEDLY Defaulted | Washington’s Blog. (FULL ARTICLE)

It’s a Myth that the U.S. Has Never Defaulted On Its Debt

Some people argue that countries can’t default.  But that’s false.

It is widely stated that the U.S. government has never defaulted.  However, that is also a myth.

Catherine Rampbell reports in the New York Times:

The United States has actually defaulted on its debt obligations before.

The first time was in 1790, the only episode Professor Reinhart unearthed in which the United States defaulted on its external debt obligations. It also defaulted on its domestic debt obligations then, too.

Then in 1933, in the midst of the Great Depression, the United States had another domestic debt default related to the repayment of gold-based obligations.

(Update.)

Donald Marron points out at Forbes:

The United States defaulted on some Treasury bills in 1979 (ht: Jason Zweig). And it paid a steep price for stiffing bondholders….

 

Everyone The U.S. Government Owes Money To, In One Graph | Zero Hedge

Everyone The U.S. Government Owes Money To, In One Graph | Zero Hedge. (SOURCE)

If Congress doesn’t raise the debt ceiling soon, the U.S. government won’t be able to pay its debts. Here’s NPR’s simple (and complete) illustration to who the government owes money to — all the holders of U.S. Treasury debt, broken down by category and by how much government debt they hold. It would appear the government’s ponzi self-financing may be exposed for all to see… (and is it anywonder the Chinese are complaining?)

 

12 Very Ominous Warnings About What A U.S. Debt Default Would Mean For The Global Economy

12 Very Ominous Warnings About What A U.S. Debt Default Would Mean For The Global Economy.

A U.S. debt default that lasts for more than a couple of days could potentially cause a financial crash unlike anything that the world has ever seen before.  If the U.S. government purposely wanted to damage the global financial system, the best way that they could do that would be to default on U.S. debt obligations.  A U.S. debt default would cause stocks to crash, would cause bonds to crash, would cause interest rates to soar wildly out of control, would cause a massive credit crunch, and would cause a derivatives panic that would be absolutely unprecedented.  And that would just be for starters.  But don’t just take my word for it.  These are the things that top financial experts all over the planet are saying will happen if there is an extended U.S. debt default.

Because they are so close together, the “government shutdown” and the “debt ceiling deadline” are being confused by many Americans.

As I wrote about the other day, the “partial government shutdown” that we are experiencing right now is pretty much a non-event.  Yeah, some national parks are shut down and some federal workers will have their checks delayed, but it is not the end of the world.  In fact, only about 17 percent of the federal government is actually shut down at the moment.  This “shutdown” could continue for many more weeks and it would not affect the global economy too much….

 

Sense Of Unease Growing Around The World As U.S. Government Looks Befuddled

Sense Of Unease Growing Around The World As U.S. Government Looks Befuddled. (FULL ARTICLE)

— An unmistakable sense of unease has been growing in capitals around the world as the U.S. government from afar looks increasingly befuddled — shirking from a military confrontation in Syria, stymied at home by a gridlocked Congress and in danger of defaulting on sovereign debt, which could plunge the world’s financial system into chaos.

While each of the factors may be unrelated to the direct exercise of U.S. foreign policy, taken together they give some allies the sense that Washington is not as firm as it used to be in its resolve and its financial capacity, providing an opening for China or Russia to fill the void, an Asian foreign minister told a group of journalists in New York this week.

Concerns will only deepen now that President Barack Obama canceled travel this weekend to the Asia Pacific Economic Cooperation Forum in Bali and the East Asia Summit in Brunei. He pulled out of the gatherings to stay home to deal with the government shutdown and looming fears that Congress will block an increase in U.S. borrowing power, a move that could lead to a U.S. default.

The U.S. is still a pillar of defense for places in Asia like Taiwan and South Korea, providing a vital security umbrella against China. It also still has strong allies in the Middle East, including Israel and the Gulf Arab states arrayed against al-Qaida and Iran.

But in interviews with academics, government leaders and diplomats, faith that the U.S. will always be there is fraying more than a little….

 

Government Lies About Spying Again and Again … Here’s What’s REALLY Going On | Washington’s Blog

Government Lies About Spying Again and Again … Here’s What’s REALLY Going On | Washington’s Blog. (FULL ARTICLE)

US Government Fails Honesty Standards of 12 Year Olds

Government leaders have been caught in lie after lie about spying … but keep on spouting new lies:

 

The Biggest Ponzi Scheme In The History Of The World

The Biggest Ponzi Scheme In The History Of The World.

 

Laurence Kotlikoff: “The US Fiscal Gap Is $200 Trillion… Our Country Is broke” | Zero Hedge

Laurence Kotlikoff: “The US Fiscal Gap Is $200 Trillion… Our Country Is broke” | Zero Hedge.

 

Guest Post: Our Huge, Stinking Mountain of Debt: Student Loans | Zero Hedge

Guest Post: Our Huge, Stinking Mountain of Debt: Student Loans | Zero Hedge.

 

10 Chemical Weapons Attacks the U.S. Government Doesn’t Want You to Know About | A Lightning War for Liberty

10 Chemical Weapons Attacks the U.S. Government Doesn’t Want You to Know About | A Lightning War for Liberty.

 

BP sues US government over contract ban – Americas – Al Jazeera English

BP sues US government over contract ban – Americas – Al Jazeera English.

 

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