Breakfast with Reporters

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Breakfast with Reporters
by Douglas Elmendorf
I spoke last week with a group of reporters who gather regularly for breakfast at the invitation of the Christian Science Monitor. The conversation touched on a number of issues, but I would like to focus on three of those.

Defaulting on government obligations would be a dangerous gamble. It is difficult to know exactly what would happen if the federal government were to default on its debt because we do not have any recent experience of a federal default. However, a government that owes as much as ours does, and will need to borrow as much as ours will need to borrow, cannot take the views of its creditors lightly.
http://cboblog.cbo.gov/?p=2266