The Free Press, Mankato, MN

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October 11, 2013

Debt deal will be resolved without default

I read with interest the results of the recent Free Press online poll (”National media dropped ball on shutdown coverage”). Kudos’ to the critical thinking of those who expressed opinions in the poll. But the crisis seems to have shifted from the “partial shutdown” to the debt ceiling crisis.

Debates over the debt ceiling are nothing new. They began over 100 years ago. The way I see it the current debt ceiling is not the problem; the current debt is the problem. All indications are House leadership will authorize an increase in the current debt ceiling, subject to a prior iron clad agreement to limit future government spending in specific areas.

If the debt ceiling is not lifted by the Oct. 17 projected deadline, that only prevents the federal government from running-up new debt. It does not mean the government will be forced to default. Tax revenues will keep coming into the Treasury. Those revenues almost certainly will exceed the interest to be paid on the accumulated national debt. According to Moody’s (Oct. 9) those revenues can be used to avoid default and any accompanying adverse effect on the nations AAA rating.

So as debate continues I suggest we not accept everything we read and hear in the media about blame and/or dire consequences if it is not resolved within the next few days. It will be resolved when both parties are willing to agree they can not get everything they want. That is how our government is supposed to work.

Bob Jentges

North Mankato

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