Liberty & Power: Group Blog
Why Default on U.S. Treasuries is Likely
Liberty Fund has just featured my article on "Why Default on U.S. Treasuries is Likely." Here is the first paragraph:
"Almost everyone is aware that federal government spending in the United States is scheduled to skyrocket, primarily because of Social Security, Medicare, and Medicaid. Recent "stimulus" packages have accelerated the process. Only the naively optimistic actually believe that politicians will fully resolve this looming fiscal crisis with some judicious combination of tax hikes and program cuts. Many predict that, instead, the government will inflate its way out of this future bind, using Federal Reserve monetary expansion to fill the shortfall between outlays and receipts. But I believe, in contrast, that it is far more likely that the United States will be driven to an outright default on Treasury securities, openly reneging on the interest due on its formal debt and probably repudiating part of the principal."
- inflationary vs. explicit default by Bill Woolsey (August 4, 2009 at 8:44 AM)
- Re: inflationary vs. explicit default by Jeffrey Rogers Hummel (August 5, 2009 at 10:50 AM)
- default by Bruce Ramsey (August 4, 2009 at 12:36 PM)
- After default, then what? by James (September 11, 2009 at 12:02 PM)
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