if we really go nuts and default for a sustained period, interest ratings would go up significantly. and there could be panic in markets. another economist challenged the idea that america s credit standing would be damaged because while other payments would suffer, medicare and social security for example, payments on uncle sam s debt would not. whereas we expect to get $2.2 trillion in tax revenue this year, interest expense is a tenth of that. if they don t raise the debt limit it s simple, they will use the tax re-knew to pay interest on the debt that will become the first priority of the federal government to maintain the full faith and credit of the government. most republicans want to couple any increase in the debt creeling with the dramatic cuts in federal spending. congressman ron paul seen by many as the godfather of the seahawks movement opposes raising the ceiling period and calls secretary and treasury fear mongerrers.
if we really go nuts and default for a sustained period, interest ratings would go up significantly. and there could be panic in markets. another economist challenged the idea that america s credit standing would be damaged because while other payments would suffer, medicare and social security for example, payments on uncle sam s debt would not. whereas we expect to get $2.2 trillion in tax revenue this year, interest expense is a tenth of that. if they don t raise the debt limit it s simple, they will use the tax re-knew to pay interest on the debt that will become the first priority of the federal government to maintain the full faith and credit of the government. most republicans want to couple any increase in the debt creeling with the dramatic cuts in federal spending. congressman ron paul seen by many as the godfather of the seahawks movement opposes raising the ceiling period an calls secretary and treasury fear mongerrers.