Debt ceiling 101: 12 questions about what's going on

The US Treasury has warned that as early as Oct. 17 it will no longer be able to cover all the government's rising financial obligations. Here’s your guide to the debt limit deadline and its implications.

11. Has the US Treasury defaulted before?

J. Scott Applewhite/AP/File
Mark Zandi (l.), chief economist with Moody’s Analytics, testifies at a congressional hearing on the economic costs of debt-ceiling brinksmanship last month.

Obama and others have said the US has never defaulted. In fact, though, at least a small instance of technical default has occurred, economists say. In the spring of 1979, some investors in short-term Treasury bills faced delayed payments. The Treasury blamed the glitch partly on Congress’s failure to act in a timely way on the debt ceiling, and partly on problems with its computer equipment.

Some economic research concludes that even this small instance of default had a lasting negative effect, pushing up federal borrowing costs. In recent testimony on Capitol Hill, Mark Zandi of Moody’s Analytics said the incident “has cost us tens of billions of dollars.”

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Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

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