The mainstream media and the Washington, D.C.-obsessed news pundits are in hysterics that the United States government is potentially facing default if the Congress does not increase the legal debt limit, so the U.S. Treasury can continue to borrow more and more hundreds of billions of dollars in the fiscal year 2014 to cover the government’s spending in excess of what it collects in tax revenues.
What has been given little attention in all of this anxiety is that if the debt limit is not raised the Federal government will have to operate within the confines of a balanced budget. That is, the government would be authorized to only spend what it collects in taxes.
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