Self-sufficient US could weather default

Before we begin, let it be said that the looming possibility of the US’s default on its own debt is a not-insignificant issue.

Let it also be said that the US government may be unwilling to pay interest on its multi-trillion dollar publicly-held debt as of mid-October, and that this carries substantial risks. And, finally, let it be said that this is something we should most definitely avoid.

The potential for a default — however self-inflicted — raises the spectre of just about every bad thing economically that you can imagine. And there have been no dearth of voices drawing attention to a variety of doomsday scenarios.