Truthmatters
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U.S. Debt Ceiling: Your Cheat Sheet to the Policy History (NYSEIA, NYSE:IWM, NYSE:SPY, NASDAQ:QQQ, NYSE:MDY, NYSE:TLT, NYSE:TBT, NYSE:XLF, NYSE:UUP, NYSE:UDN) | Wall St. Cheat Sheet
the closest the government ever came to default was a last minute deal in 1979. Though the deal was finalized in time, computer malfunctions led to $122 million in Treasury payments being delayed, technically amounting to temporary default and thus permanently increasing interest rates by 0.6%, resulting in $12 billion in additional annual debt payments, costing the government roughly $384 billion to date. We can only imagine the toll a default, even temporary, could take on today’s economy.
the closest the government ever came to default was a last minute deal in 1979. Though the deal was finalized in time, computer malfunctions led to $122 million in Treasury payments being delayed, technically amounting to temporary default and thus permanently increasing interest rates by 0.6%, resulting in $12 billion in additional annual debt payments, costing the government roughly $384 billion to date. We can only imagine the toll a default, even temporary, could take on today’s economy.
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