Instead, we’d retain $16T+ of debt and merely have to dramatically slash government spending to the amount of current revenues each day — which would entail a roughly 40% cut. It would have been much less of a cut had it been done before Obama heaped another $6T in debt on the pile, but that’s what we’re looking at today.

The US has about 330M people, and $16T in debt. To put this another way, that’s about $54,000 per person — which is what the government has promised to extract from everyone in taxes to pay that debt. If, instead, it were actually defaulted and repudiated, each citizen would no longer have to bear the burden of hauling around $54,000 of obligations accruing interest for the rest of his or her life. And, since the major debt-holders are Social Security, the Fed, and China…..you’d merely see Social Security become “pay-as-you-go” [which it almost is today], the Fed implode, and the Chinese have their feelings hurt. I suspect I know what Andrew Jackson would think about that — being that he intentionally imploded the Second National Bank of the United States for various irresponsible behaviors.

Paging Chicken Little.

Chicken Little, please pick up the red courtesy phone.

Put it all on C-Span.