Outside of the blogosphere, there’s been little little mention of the fact that the US government is already technically in default on the national debt. Now, Treasury Secretary John Snow is reported to be shuffling money (including retirement funds) around in order to pay the bills.
In a letter to Congress, Snow urged lawmakers to pass a new debt ceiling immediately to avoid the nation’s first-ever default on its obligations.
“I know that you share the president’s and my commitment to maintaining the full faith and credit of the U.S. government,” Snow said in his letter to leaders in the House and Senate.
Treasury officials, briefing congressional aides last week, said that the government will run out of maneuvering room to keep from exceeding the current limit sometime during the week of March 20.
We already know what will happen next: Congress will vote to increase the debt ceiling.
Let’s see. What would happen if I buy a 10,000 square foot house and a few really nice cars — and then run out of money? If I needed a yacht and some original Van Gogh’s, perhaps my family could simply vote to increase our debt ceiling, too. If we don’t have the income to pay it off, who cares? The kids can always pay off our debts.