Friday, May 27, 2011

The Day the United States Defaulted on Treasury Bills

Forbes reports that since the day of Alexander Hamilton, the United States has never defaulted on the federal debt.That’s what we budget-watchers always say. It’s a great talking point. One that helps bolster the argument that default should not be an option in Washington’s ongoing debt limit slowdown.

There’s just one teensy problem: it isn’t true. As Jason Zweig of the Wall Street Journal recently noted, the United States defaulted on some Treasury bills in 1979. And it paid a steep price for stiffing bondholders….

Wait, wait...read the rest at:
http://blogs.forbes.com/beltway/2011/05/26/the-day-the-united-states-defaulted-on-treasury-bills/

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