Tuesday, July 12, 2011

Debt Ceiling: Worst-Case Scenario

As I understand it, if the debt ceiling is not raised, the federal government cannot borrow any more money. That should mean it can only spend only what it raises in revenue. But what would that mean? Would the federal government have to default (stop making interest payments on its existing debt)? Would Social Security checks have to be cut? How big are the cuts we are talking about?"

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