The President recently asserted that the United States had never defaulted on debt, and never will. Rico at Theo Spark's blog points out that the President's statement is untrue.
The US has defaulted in the past. It will again default in the future. USG defaults include:- Continental Currency 1779
- Domestic Debt 1782
- External Debt 1790
- Greenbacks 1862
- Domestic Debt 1933
- Liberty Bonds 1934
- Nixon's refusal to redeem Dollars 1971
Rico ends with this line:
And anyone relying upon teleprompter readers for their 'information' today is (badly paraphrasing Mark Twain) both 'uninformed' and 'misinformed.'
Rico also provides this further clarification:
a. There is NO connection between the 'debt limit' and 'default' in the US.- The 'debt limit' restricts government spending to the amount of incoming government revenues, but it does NOT prohibit the government from servicing its debt.
b. The US 'debt ceiling' has already long been breached, and the country is already in a 'soft' default.
- Emergency measures [read: accounting shenanigans] by the Treasury have been concealing the debt limit breach.
- Debts are being repaid with a debauched currency. Devaluing the Dollar allows the government to pay back debts with money that is increasingly worth LESS.
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