Denninger: Don't believe the hysteria

I was forced out and about today into the world, and I was very fortunate to catch a bit of KD on the local Conservative talk shop, he was a guest. 

I have not seen a post on his site yet on the topic, but I will link when he writes it.  The essence: Do not buy into the hype that will come from the Political Class about how we must default on our debts if the debt ceiling is not raised.

As he explained, our current interest on the debt & principal payments are about 300 Billion annually.  Our tax revenue is near 2 Trillion.  That means our Treasury Secretary and his boss can pay all of our interest without a default...so long as they choose to do so.

If the do not pay the debt payments, it is a willing choice by our Politicians.

Yes, they will be up against a hard cap to spend only what tax revenue comes in the door, but they will be able to pay the debt payments, SS, Medicare & Medicaid, keep the essentials going at DoD, et cetera.

Yes, they will have to choose many things NOT to pay, but in all cases these will be choices.  In most cases I would contend that the spending is unconstitutional, anyway.

I hope Karl writes on the topic soon.  I do not do him justice.

Kerodin
III