OriginalShroom
Gold Member
- Jan 29, 2013
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I wonder if the Press is going to hit Obama and the Democrats with this?
I doubt it... But if it were an honest press they would.
In a memo being circulated on Capitol Hill Wednesday, Moodys Investors Service offers answers to frequently asked questions about the government shutdown, now in its second week, and the federal debt limit. President Obama has said that, unless Congress acts to raise the $16.7 trillion limit by next Thursday, the nation will be at risk of default.
Not so, Moodys says in the memo dated Oct. 7.
We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact, the memo says. The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasurys extraordinary measures to raise funds) and a default.
I doubt it... But if it were an honest press they would.