We Actually Defaulted before...Three Times, in Fact
Jul 28, 2011 at 2:50 PM
You've probably heard the various reasons why we need to raise the debt ceiling, including how if we don't America will slip into default, our economy will tank, our dollar will lose all value, our credit rating will suffer, the world economy will collapse, and Beelzebub himself will rise from the underworld and swallow Newfoundland whole. The most parroted consequence is the issue of default, which according to many Washington politicos, has never happened before. Ever since we became a country, we have always fulfilled our debt obligations, whatever the cost was, and this would be an unprecedented breakdown of compromise and American integrity.
Except for one thing: we have defaulted before...three times. Last night on his show Freedom Watch, Judge Andrew Napolitano talks about those chapters in American history that aren't discussed nearly as much as they should be. The Judge explains why the US had to default, what it did to the dollar, and how the only way we can hope to break the vicious debt cycle we've gotten ourselves into is to stop borrowing.