Which states have defaulted

On Oct. It came after Senate Minority Leader Mitch McConnell offered a temporary suspension to the debt limit , averting a default until at least December. Understanding those consequences begins with looking at how the U. The Treasury Department has three sources. It can also print money through the Federal Reserve. Bondholders lend the government a set amount of money to be paid back with interest over a certain time frame. Although this includes money due to lenders and investors both overseas and in the U.

This is all simply wrong. If the United States government did default now, it would be the fifth time, not the first. There have been four explicit defaults on its debt before. These were:. To paraphrase Daniel Patrick Moynihan, you are entitled to your own opinion about the debt ceiling, but not to your own facts about the history of U. Alex J. View the discussion thread. This post originally appeared in May This version has been slightly edited.

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