Wednesday, July 27, 2011

Healthy Exercise

On Aug/3 the US owes $23 bln to Soc Sec recipients. According to Politico, only $12 bln is expected to come in that day.

We know that the US will not miss an interest payment on its bonds (due 8/15). For a week or two, will Treasury allocate to the rest - prioritize payments for example to veterans? We don’t know.

Nevertheless, this is a healthy exercise. Major world institutions see it as such. If there were to be a meltdown, it would have happened weeks ago.


Robert Craven

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