The Conservative Cave
Current Events => Economics => Topic started by: Ptarmigan on October 16, 2013, 10:29:29 AM
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Government default? It’s already happened, twice
http://dailycaller.com/2013/10/16/government-default-its-already-happened-twice/
Although President Barack Obama and the establishment media routinely describe a potential federal default as “unprecedented,†the United States government has flaked on its debt service several times, and one expert says the current default has already begun.
The historical default precedents should be of limited comfort to Obama, however. One of the deadbeat presidents was the commander in chief during a disastrous war that saw Washington, D.C. occupied and the White House burned to the ground. The other was Jimmy Carter.
According to Connie Cass of Associated Press, the U.S. government “briefly stiffed some of its creditors on at least two occasions.†The first default took place in November 1814, during the administration of James Madison, America’s tiniest chief executive. Just a few months after the British conquest of Washington, D.C. during the War of 1812, the Treasury was unable to move enough precious metal to service its debt, and missed interest payments on bonds. Boston bondholders, according to Wayne State College history professor Don Hickey, were paid off in short-term interest-bearing treasury notes or more bonds. These debt service troubles, and the war, were resolved within a few months.
Not surprised defaulting happened before. The first one happened after the War of 1812 under James Madison. It also happened under Jimmy Carter and already with Barack Obama. Two of the three happened under Democrats.