A “default on our debt” would be unprecedented in American history
A “default on our debt” would be unprecedented in American history
- January 11, 2023
- Gary Richardson, economics, PolitiFact, Jan. 11, 2023
Gary Richardson, an economist and historian of the Federal Reserve system at the University of California, Irvine, said that by the same logic, one could argue that any time the Federal Reserve expands the money supply — as it has done repeatedly over the years — it reduces the value of existing money and thus shrinks the real value of payments promised to debt holders. "Inflation occurs almost every day," he said. "Why isn't this also labeled a default?"
For the full story, please visit https://www.politifact.com/factchecks/2023/jan/11/hakeem-jeffries/hakeem-jeffries-said-a-debt-limit-default-would-be/.
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