The Right Coast

Editor: Thomas A. Smith
University of San Diego
School of Law

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Thursday, October 10, 2013

David Malpass: The Bigger Battle Behind the Shutdown -

Fortunately, an actual default is a red herring. The president has sweeping powers through Treasury to continue paying the national debt. Mr. Obama alluded to this on Tuesday by listing the non-debt obligations that might be paid late, including government contractors, veterans and Social Security recipients (whose checks are due Nov. 1). In effect, the government would choose to pay them late and use newly arrived tax revenues to maintain debt payments.


Read the whole thing. Goodness.

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"to continue paying the national debt": what?! One doesn't "pay a debt", one pays interest on it. Or not, as the case may be.

(Unless he's loonie enough to believe that anyone plans to pay off national debt: surely he can't, can he?)

Posted by: dearieme | Oct 10, 2013 7:01:03 AM