July 20, 2011
As the August 2 deadline looms for the U.S. to raise the debt ceiling, many avid Washington-watchers are passing the popcorn as the drama continues to unfold. For those who study economic history, this fight is as old as the Republic itself.
As to whether or not a compromise will be made by the warring Republicans and Democrats – well, that remains to be seen, now doesn’t it. Mega-barrels of ink are being spilled over the issue; wade into it at your own peril but carry a large bottle of aspirin.
Taegan Goddard’s
Political Wire calls to our attention some recent commentary by Warren Buffet, who was quoted by
NBC News: “‘That’s a level of immaturity that I don’t believe even this Congress is up to’ – ‘predicting Congress will not allow the United States to default on its debt after this ‘little fight in our sandbox.’ ”
Many agree with Mr. Buffet’s comments, according to Kristen Weller: “We cannot go to Aug. 2 and tell the rest of the world, ‘Look because we’re having this little fight in our sandbox back here, that we’re going to essentially default on obligations of the United States for the first time in our history.’ ”
And just what is the history of the national debt?…
[…]
However, debate over the national debt dates to the beginning days of the United States and really marks one of the first instances of acrimonious deadlock in the history of our government.
The year was 1790 and the flashpoint of contention was Treasury Secretary Alexander Hamilton’s “Assumption Plan.”
On September 21, 1789, Congress asked Secretary Hamilton to prepare what has become known as the first “
Report on Public Credit” in reference to the huge amount of debt individuals and particular states had run-up during the American Revolution. Just as with today, some of the debt was owed to American citizens; however, much of the money had been borrowed from foreign governments….
http://www.thetentacle.com/ShowArticle.cfm?mydocid=4527
[20100128 CRS RL31967_The Debt Limit History]
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