“The power under the constitution will always be in the people. It is entrusted for certain defined purposes, and for a certain limited period, to representatives of their own choosing; and whenever it is executed contrary to their interest, or not agreeable to their wishes, their servants can and undoubtedly will, be recalled.”

~ George Washington (1787)

Tuesday, July 12, 2011

The US Treasury Will Not Default

From Kurt Brouwer, of Market Watch:
 Despite all the rhetoric and posturing we see in the media and in Washington D.C., it is safe to say categorically that the U.S. Treasury will not default on its debt after August 2nd, even if the debt ceiling is not raised.  Not only will the Treasury be able to pay interest on U.S. debt obligations, but there is money for other essential programs as well.  However, there will be some serious cutting that has to happen because spending clearly exceeds revenues.
Read The Whole Thing.  It's worth your time.
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