This Chart Destroys The Debt Ceiling Truthers

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		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Monday, October 7, 2013 This Chart Destroys The Debt Ceiling Truthers A common argument among those who are sanguine about using the debt ceiling as political leverage is that breaching the debt ceiling wouldn't mean default. They argue that the Treasury has plenty of money coming in each day to cover interest payments, and so therefore the Treasury can just prioritize debt payments (ahead of other spending) and avoid default. There are two problems with this.  The first is that legally and technically, prioritization might be impossible. Here's the other problem. It's not true that on all days the Treasury has more money coming in than it has to pay out. As Goldman Sachs points out, the receipts/payments schedule is lumpy. The U.S. might be able to prioritize for a few days, but come November the U.S. would have to pay way more than was coming in that day, and we'd have a real breach no matter what. Read » Also On Markets Today: STOCKS TUMBLE, DOW LOSES 136 POINTS: Here's What You Need To Know CONSUMER CREDIT RISES MORE THAN EXPECTED Advertisement CHART OF THE DAY: 87 Years Of Crisis And Stock Market Volatility CHART OF THE DAY: Watch The Government Shutdown Eat Away At GDP Growth CHART OF THE DAY: The Shutdown Has Had No Noticeable Affect On Consumer Confidence Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Markets RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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