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Mazzei Minute: 02/24/23

Over the next few months, you will hear repeatedly that the debt ceiling for the United States must be raised or else we risk a default on our national debt. Let me be very clear. There is no danger whatsoever that the U.S.A will default on debt payments!


The. U.S. brings in around $450 billion per month in tax revenue which is way more than needed to cover the approximately $55 billion per month for interest payments to bondholders. In fact, section 4 of the 14th amendment to the U.S. Constitution states unequivocally, “the validity of the public debt of the United States, authorized by law…shall not be questioned.”


The media and the public have been snookered by the apocalyptic allusion as D.C. swamp politicians try to scare everyone with predictions of great bond and stock market turbulence over the debt ceiling discussion. Even Treasury Secretary Janet Yellen foolishly states, according to constitutional lawyers David Rivkin Jr. and Lee Casey, “A failure on the part of the United States to meet any obligation…is effectively a default.”


Yellen doesn’t seem to mind confusing everyone by saying debt payments are equal to spending obligations. You and I both know they are not.


Your car payment must be paid, or you will lose your car. Your spending for a cool vacation can be delayed or canceled. Therefore, according to Rivkin & Casey, “investments in U.S. bonds are rock solid and entail no meaningful risk of default.” (WSJ, Feb. 22, 2023)


The real risk to the American people is out-of-control federal spending. As for the coming debt ceiling negotiations, Congressional Republicans should call Yellen’s bluff and demand a reduction in spending.

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