As one who’s been arguing that the US is sleep walking off a cliff by flirting with defaulting on the federal debt for the first time in the nation’s history, even I’m a little stunned to see news that some of the biggest US banks are already making plans (sub.req.) to cut their use of US Treasuries in August as a preparation for default.
In light of that I’d really urge you to read the piece we published last week which reports that in addition to potentially catastrophic effects on the economy this Fall, default could end up adding as much as $1 trillion to the US debt over the next decade. A trillion more in debt because of this suicidal move.
Republicans are playing Russian Roulette with the US economy. But with like three or four bullets in the chamber.
