On August 7, 2011 I wrote:
“Does anybody seriously think the U.S. will default on its debt obligations? The recent political mess in Washington may make you say, “Maybe.” But think about it for a second. In spite of a bunch of politically motivated, not so intelligent, partisan, ideologically driven bozos who cannot even be personable to each other running things in Washington, when push came to shove, when they had the opportunity to default, they didn’t. The last month in the U.S. simply shows us that even in terrible economic times, when the political system is quite broken, the U.S. will not default on its debt. So if you are thinking, “Maybe,” think again. The U.S. will not default on its debt. The past month has confirmed that view.
Nothing has changed in Washington. We have more or less the same cast of characters and they are behaving in more or less the same childish manner that they did about 18 months ago. They didn’t let the U.S. default on its debt obligations then, and they won’t this time around.
Rather than let them be, and not cover this now familiar game of pretend chicken that they play, the press will once again start the countdown, and wonder what will happen. Many a pundit will say things said often enough in the past. The cottage industry of covering and commenting on dysfunctional Washington has a new lease of life, and much activity will take place because of it.
The only news will be if the U.S. defaults. There is no news folks. They won’t.