We’ve shared with you in this forum Jonah Goldberg‘s thoughts about the upcoming fight over the federal debt limit. Today Human Events reporter John Gizzi addresses the issue:
So what will happen if it appears Congress will say no to raising the debt limit in May? Will U.S. credit worldwide be endangered, thus having a lasting impact on federal programs and America’s ability to borrow? (“We’ll be paying the Chinese the interest on our debt in script,” is how one Washington wag put it). Or will the Treasury Department suddenly begin printing greater amounts of money and thus spawn inflation of the U.S. dollar?
In all likelihood, none of the “sky is falling” scenarios will play out, even if it takes somewhat longer than expected to get a vote on the debt ceiling in return for the much-sought concessions on spending cuts for House Republicans. As a just-completed report by the nonpartisan Congressional Research Service titled “Reaching the Debt Limit” noted: “Treasury has yet to face a situation in which it was unable to pay its obligations as a result of reaching the debt limit. However, during debt limit impasses in 1985, 1995-1996, 2002, and 2003, Treasury took extraordinary actions to avoid reaching the debt limit and to meet the federal government’s other obligations.”
