Another U.S. Debt Crisis Would Be A National Security Disaster.

The Fire Next Time -- Robert D. Hormats, Foreign Policy

Why another debt crisis would be a national security disaster.

The Congress finally found a way to enable the U.S. Treasury to service and repay America's financial obligations -- this time. But it's only a temporary fix; the United States will hit the so-called "debt ceiling" again in just a couple of months. If Washington can't figure out a way to stop lurching from one debt crisis to the next, the result won't be just a catastrophe for the U.S. economy. It will severely damage America's foreign policy and national security interests around the world, as well. American leadership will suffer as our nation's reputation as a reliable and predictable partner diminishes.

Since the founding of our republic, America's leaders have recognized the close links between ensuring the creditworthiness of the federal government and protecting the nation's security. Alexander Hamilton wrote repeatedly of the need for the nation to honor its Revolutionary War debt, so that if there were another war the country would once again be able to borrow to pay for it. After the Civil War, America's leaders placed great emphasis on servicing and repaying the Union's debt to keep faith with creditors and to ensure continued access to world financial markets; that was the reason for the clause in the 14th Amendment that read, "The validity of the public debt of the United States … shall not be questioned."

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My Comment: When people read stories like this one .... it is not hard to realize that it is only a matter of time before the next "debt crisis" does happen .... and all the repercussions that the above post warns about will become reality.