For years, Sen. Jim Inhofe (R-Tulsa) has argued global warming doesn’t exist. It’s fictional and a figment of every scientist’s imagination. According to the good senator, it’s an attack on the energy industry by tree-hugging environmentalists.
Now, Oklahoma’s other senator, Tom Coburn (R-Muskogee), contends the nation’s debt ceiling isn’t real and the U.S. won’t default on its loans if the ceiling isn’t raised. Coburn claims the U.S. Department of the Treasury will continue to pay interest on bonds held by creditors, redeem them and then issue new bonds.
However, Secretary of the Treasury Jack Lew has a vastly different opinion:
“There is no option that prevents us from being in default if we don’t have enough money to pay our bills.”
CFN doesn’t have any financial gurus on staff, but we do know if our bills aren’t paid on time, the creditors begin to call.
This article appears in Oct 9-15, 2013.