American Thinker: The federal government is funded through March 14. Will the Republican House and Senate pass a bill before that deadline? Over the years, Republicans have usually caved to Democrat insane demands rather than be held responsible for a government shutd...
This subject of public finance has me a bit perplexed. After reading glib stuff in the past that says that all you have to do is rollover the debt, it sounded simple. But what if that is not what happens? What I mean is, when paying interest on the debt, does any principle ever get paid? If not, then you cannot rollover the debt. You have to keep taking out debt in order to service debt.
Consequently, in order to keep from defaulting, you have to cut spending BELOW the level of revenue intake. This will allow payment on principle and interest. Then you can fund whatever can be funded on available tax revenues.
But I'm not clear on all that because I don't know exactly what happens, and what is meant by payment of interest on the debt. Therefore, if the above speculation is correct, you have to pay down principle and interest in order to keep the debt from rising. If you are at your limit, you have to pay off some of your debt on your credit card. The government's credit card has no limits. They just like to pretend that they do.
Ten to one I'm not making myself very clear here.
Let's just say we've got a big shit sandwich here, and everyone is going to have to take a bite.
1:19 PM:
This is nuts. You're going to need nearly all of that to refinance the debt that is rolling over soon. Plus you have to pay interest on the debt. Sending the money back to voters may be popular, but it just defeats the purpose of the entire exercise.
Maybe you could rollover the debt with the savings, and issue greenbacks to pay for the interest. Freeze the debt at current levels. Freeze future spending to revenue levels actually earned through income and actual work.
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