Amidst the irresponsible media blitz of US debt default talk is a handful of constructive, truthful information. Delving into only a portion of this available information reveals what is really going on and what could be happening if the two octogenarians in charge would finally end their two-year-long overage of spending (it is obvious who the octogenarians are, and one is late in her 8th decade if not 80 yet).
One tool that could be used immediately to address the continued paydown of US Treasury principal and interest is that of “rolling over” maturing US Treasury obligations by issuing new debt to pay off old debt. According to legal sources who have advised recent administrations of both major political parties, this type of debt paydown could even lower the amount of outstanding government debt subject to the “statutory limits” that would constitute exceeding the debt limit. This plan was established by the US Treasury back in 2011 when the last major showdown on the debt limit occurred.
