What a waste of time and paper, not to mention additional hardware support and maintenance to the required scanners and printers.
Save paper... more »
By expanding the default margins from 1.5" to .75" the government would be able to save approximately 5% of the paper it uses, just by making a few clicks. This would cost nothing to implement and save, literally, tons of paper.
We pay about 5% on long-term debt. Greece pays 15%. If we default and start paying 15% like Greece, it will cost an additional $1.4 trillion per year in interest, based on 10% times debt of $14 trillion. The additional $1.4 trillion in interest is equivalent to about 2/3 of the federal government's annual revenue.
For every 100 basis point increase in interest rates, the interest on the $14 trillion debt increases by $140 billion. Flirting with the disaster that would be caused by a default results in less confidence by investors on the risk of Treasury securities, increasing interest rates.
The current budget process is like a game to see who can pick up the most pennies in the path of a speeding steamroller. The inability to get things done related to the debt ceiling has had a significant impact on the financial markets, with severe downturns in the stock markets, and the cost of borrowing will now increase.
A default would be like having a balance on a credit card at the low introductory rate of 2.9% that increases to 24% if the minimum payment is not made, then considering not making the minimum payment to show remorse for still having an outstanding balance.