Threat of U.S. Defaulting on Its Obligations

So now the scare tactics over the debt ceiling move from the domestic to the international stage. Yes, folks, the talk in Washington is that unless the Congress raises the debt ceiling the unthinkable will happen: the U.S. government will default on its obligations.

(Reuters) - Money lenders trust America so implicitly that they generally dismiss the risk it won't pay its debts. But in the U.S. capital, fears are growing that political dysfunction might trigger the unthinkable. 

Government veterans from both political parties are aghast that lawmakers openly speak of managing a default that could be triggered next month if they don't authorize more borrowing.

"Aghast" they say. Well, while the government drama queens play all this out, let's not lose sight of the fact that the U.S. government has run up so much debt that a default could very well shake - even collapse - the world's financial system. The issue we should all be howling about isn't that they might default, but that the government can't function without the ability to run up even more debt.

Please, don't lose sight of this. Don't let them take your eye off the debt ball. Isn't there any way to hold these people accountable?!!

Apparently not.

America is far from insolvent and, for generations, investors have bet there was no risk that America would fail to make good on its debts.

That's right, there's always room for more.

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