Wacko Watch:
http://www.buzzfeed.com/matthewzeitlin/at-least-one-guy-thinks-breaching-the-debt-ceiling-isnt-such
Anyone familiar with this guy? To paraphrase: "If we're going to run out of fiat soon, why dont we just run out of fiat now!" says genius economist. "We are stealing so much fiat from our children", he continues. Apparently, in this guy's future, we will not have enough computer data to store all the fiat! What if we all get carpel tunnel and can't type at a keyboard! The horror!
[Some kind of default by not making good on all the spending, entitlement
and interest payment obligations, Rickards argues, is inevitable, or
failing that, inflation. If inflation shoots up, the dollar-amount of
the debt won’t change but the debt’s value will decrease, so it’s easier
for the federal government to pay off. “It’s default by another name,”
Rickards says.]
No, it isnt. Default is a legal term, not an economic one. And while we're talking about the law, the Treasury not making payments to legally entitled beneficiaries of Social Security and Medicare is also default. Except this type of default hurts average people, not Wall St. banks, so who cares, amiright?!?!
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