Home > Market > Actually, the US has defaulted on its debt at least twice

Actually, the US has defaulted on its debt at least twice

October 15, 2013

johnny_automatic_worried_about_a_billI came across an interesting AP story this week titled Historians Put An Asterisk on US Debt Claim. The whole story is worth reading. Here is a snippet briefly explaining two times the US had defaulted on its debt:

Once, the young nation had a dramatic excuse: The Treasury was empty, the White House and Capitol were charred ruins, even the troops fighting the War of 1812 weren’t getting paid.

A second time, in 1979, was a back-office glitch that ended up costing taxpayers billions of dollars. The Treasury Department blamed the mishap on a crush of paperwork partly caused by lawmakers who — this will sound familiar — bickered too long before raising the nation’s debt limit.

The whole story is worth reading. Maybe someone should pass this story on to President Obama, he really seems to think the US never has defaulted on is debt. Personally I don’t think defaulting will be as big of a deal as the Keynesian economists and media make it seem like; however I think those opposed to defaulting should at least try to be historically accurate.

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