I was reminded today of something I hadn't really thought of to date. Maximillian, Napolean III, defaulting on debt and Cinco de Mayo. Does anyone really understand the consequences of defaulting on debt? In 1861 Mexico declared that they would default on their national debt (a debt they accrued way back when they declared their independence from Spain). Unlike a debtors prison or a debt ceiling cap - Mexico was invaded by France, England and Spain coalition forces (the countries that Mexico owed money to). England and Spain settled with Mexico taking a loss while France wanted the entire amount owed them. So, they proceeded to take over. Granted this occured back when invading a country for money owed was the norm.
With everyone yelling DEFAULT, DEFAULT has anyone really thought about the consequences of defaulting on a national debt? I seriousely doubt we would be invaded in a militaristic style but I do believe our government would be visited by 'International Advisors'. Would these advisors instruct our national government about monetary matters? I think so and would our government have to comply with their advice? Most likely. Will Greece be compelled to comply with 'International Advisors'? I'm sure. The IMF will not allow the USA to default on debt - we will all pay a heavy price.
To this end, this lowly, unrepresented American living in the Repressive State of AZ suggests that yelling DEFAULT isn't in the general interest of average Americans. I also submit that penalizing the poorest people in this country 98% while allowing the top 2% to continue to go unscathed is a formula that hasn't worked throughout history. There IS power in numbers.
