Originally Posted by Cleudus
The interest? Okay I don't follow the democratic republican media anymore. Where did you learn that defaulting on a loan only equals only interest, and not simple facts that a loan = principal + interest. Please tell me the media that told you this. I would love to know. What goop you swallowing?
And now you've shown us all that you don't know how bonds work! YAY!
Bonds are HOW we as a country borrow money. The debt limit is a limit on how many outstanding bonds we can have. When a bond reaches maturity and has to be paid the government can simply issue more bonds to replace them.
Since you won't educate yourself it looks like we will have to help you...
Let's say our debt limit is $1000. We issue $1000 worth of bonds. When some of those mature, let's say $200. We have to pay that $200 BUT WAIT we are now at $800 of our $1000 limit and can issue $200 more in bonds to go back up to the limit and it is a net loss of zero. It's the INTEREST that matters. Interest that is at all time historically low levels regardless of what Cosmo and the scare police would have you believe. Notice how he has bowed out after trying to claim our debt downgrade caused so many problems in that regard.