RE: The debt ceiling, something to pass along to your RW friends

[The Straight Story]

Unfortunately, Congress consistently brings the government to the edge of default before facing its responsibility. This brinkmanship threatens the holders of government bonds and those who rely on Social Security and veterans benefits. Interest rates would skyrocket, instability would occur in financial markets, and the federal deficit would soar. The United States has a special responsibility to itself and the world to meet its obligations. It means we have a well-earned reputation for reliability and credibility -- two things that set us apart from much of the world.

http://www.politifact.com/truth-o-meter/statements/2011/jul/22/barack-obama/ronald-reagan-talks-about-debt-ceiling/

Reagan, 1986

[Cool Logic]

1. To avoid default, the US Treasury must meet its obligations

pursuant to the terms of the bonds it has issued. And the bonds represent the money Congress has borrowed "on the credit of the United States."

The US Treasury is not like some mathematically challenged individual who is hopelessly in debt, and intends to file for bankruptcy in an effort to stick someone else with the bill. Rather than reacting immorally to matters of debt, the US Treasury is legally bound to conduct itself in an honorable manner and meet its obligations.

There will not be a default.