Actual left/right wing discussion Message Board

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Politics : Actual left/right wing discussion

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To: Lane3 who wrote (9995)	8/3/2011 9:00:12 AM
From: TimF	Read Replies (1) of 10087

When the government does not meet a non-contractual financial obligation, an entitlement, that would be a default no less than not meeting a contractual obligation would be a default. Yes it would. Edit - I originally kept it very short because I've mostly been over it but. Default has a number of dictionary definition, but for creditworthiness the application of the term as it applies to businesses is correct for the government as well. As for legal obligations, the government also has the legal obligation of the debt limit. And it has the legal (and contractual, and debt) obligation to service its debt, an obligation which its uncontrolled spending expansion is moving it towards eventually having problems being able to cover. It it stopped paying Social Security (which is of course a fantasy barring total collapse, and isn't something I'm calling on it to do), its creditworthiness would increase, as it would have cut its spending in a way that allows it to get its fiscal house in order, and as Social Security is not something that is owed to its recipients, it does no represent a debt or contractual obligation.

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