This Chart Destroys The 'Fox News' View Of The Debt Ceiling

[xchrom]

http://www.businessinsider.com/this-chart-destroys-the-fox-news-view-of-the-debt-ceiling-2013-10

A common view we've heard on Fox News is that breaching the debt ceiling wouldn't mean a default, because the US has more tax revenue coming in every day than it has to pay in interest payments. So as long as you prioritized interest payments first, you should be fine not defaulting on the debt. Fox News political analyst Brit Hume was making this point on Twitter, as well.

There are three problems with this view.

One is that it's of a legally dubious nature. It's unclear what law enables Treasury to prioritize debt payments over any other payments it needs to make (military, Social Security, etc.).

Two is that it technically may impossible. People who know how the Treasury payment system works argue that there's no way to just turn off other payments and prioritize interest payments.



Read more: http://www.businessinsider.com/this-chart-destroys-the-fox-news-view-of-the-debt-ceiling-2013-10#ixzz2hcCM9HkV

[Southside]

1. that gigantic bar on 11/1...Grammy!

Thank you for the post.

I am no financial wizard, but 11/1 Is when Grammy is supposed to get her check and the green squiggly line does not go past 11/1. That looks bad, I see revenue dots scattered across, but is that enough for 11/1?

I keep hearing social security has a trust fund that will last 20 years, so I don't know what is up. The trust fund isn't liquid I guess most of it spent on purchasing bonds?

We are running at deficits and these guys are playing games. President Obama might be forced to pay the debt over social security. This post says those decisions may not have legal authority.
Wake up America!

At least Grammy has me and my brother works for the Feds has me too. I feel so sorry for everyone suffering through this.

Republicans you don't have to do this during a shutdown.

[on point]

2. Only problem. Social security should be labeled re-pmt of loan and interest

Otherwise false notion that social security is part of budget and not repayment of debt same as t bills