WSJ Economist Stephen Moore: The US Will Not Default, Constitution Explains Why

Wall Street Journal economist Stephen Moore stated the United States will not default. He told Pat Robertson in an interview on the Christian Broadcasting Network’s 700 Club on Monday, “There will be no default. In fact, anyone who is watching this show, who owns a government bond, the chances that we will have a default on that debt and you won’t get paid is very, very close to zero.” He added, “The real danger to our credit rating and our status as a world economic superpower is if we are going to continue to borrow a trillion dollars a year.”

Moore went on to further explain why he believes the government will not default stating, “The Constitution guarantees that the full faith and credit of the United States government will be assured. That means that if we had a shut down, that doesn’t mean the government can’t spend money, it means it can’t borrow more. So I would make the case and most constitutional scholars would agree with me that the first people who would get paid [from incoming revenues] are the people who own the bonds…I think it’s highly irresponsible for this President to be running around saying we are going to have to default on the debt. Telling people to sell their stocks. Can you imagine, Pat, if a CEO of a company started talking down their stocks and their bonds?”

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