If you read the article you will notice the 43% of spending is from debt. I doubt that the sale of treasuries will stop cold turkey. However it will be cut back a lot. And the debt that is bought by others will come with a much higher price tag.
Someone pointed out that debt payments are only 6% of federal spending. That is because only interest is being paid and new debt must be sold to pay the principal on the short term treasuries.
When we hit the ceiling , someone will be hurt. It is just the way it is. Someone must accept the pain. Or the pain must be forced upon them.
I doubt that the creditors will accept the pain. So it only leaves us, the collateral.
Someone pointed out that debt payments are only 6% of federal spending. That is because only interest is being paid and new debt must be sold to pay the principal on the short term treasuries.
When we hit the ceiling , someone will be hurt. It is just the way it is. Someone must accept the pain. Or the pain must be forced upon them.
I doubt that the creditors will accept the pain. So it only leaves us, the collateral.
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