From Robert Reich: http://robertreich.org/post/4748346103
By Robert Reich
Tuesday, April 19, 2011
As the government approaches its borrowing limit of $14.3 trillion, Republicans are seeking political advantage over what conditions should be attached to raising that limit.
This is a scandal — or should be. Raising the debt limit shouldn’t be subject to party politics. Economic extortion should be out of bounds.
It’s bad enough government shutdowns have become an accepted part of political negotiation. But failure to increase the amount the Treasury can borrow would have far graver results.
Not only would the government be unable to issue Social Security or Medicare checks but the United States couldn’t pay interest on its current debt.
We’d go into default. The full faith and credit of the United States would be in jeopardy. Treasury bonds would go into free fall. Interest rates would skyrocket. We, and most of the rest of the world, would fall into financial chaos.
The recovery is still fragile. All this would force us and most of the rest of the world into a deeper recession or worse.
Continue reading at: http://robertreich.org/post/4748346103