You have no idea what your spewing and just google searching “Did US Default” and posting links. Where did I say, you just make principle and no interest payments and you’re not in default, I said US pushed forward it’s obligation to make interest payments, they had a legal precedence to do it.
The word default can have different meanings depending on the contract you have with another party if one fails to make certain payments or perform as expected per contract law. A party who has defaulted can be made to come back into compliance with a contract through payments with penalties, or modifications to a contract. Private contracts typically specify in some detail what actions or omissions would constitute default.
There is a big difference often times in public and private debt, a private individual who missed payments the credit card company can consider you delinquent, but not default unless the file is handed over to collection’s, and before this there is a time period to make one party whole again, through payments or other remedies. However, certain contracts will not give you such leeway.
In the case of US after the War of 1812 the Federal Government took the debt did a swap; with lower interest rates – but in no circumstances defaulted completely as your applying. As I said before rating agencies and public departments can have different meanings (or the contract can stipulate what will constitute a default):
Treasury Securities Carry No Contractually Specified Default Clauses
The UOC, however, contemplates no contingency related to payment delays or default. Thus, any discussion of potential default by the U.S. government on obligations related to Treasury securities cannot be based on contractual terms specified in the UOC. The absence of any provision in the UOC mentioning payment delays or defaults presumably stems from the widely held view that U.S. Treasury securities are risk-free assets. If Treasury payment delays or defaults were to become an issue, legal consequences would depend on how the corpus of contract law were applied. (Congressional Research Service:
https://fas.org/sgp/crs/misc/R44704.pdf).
oh my God do i have dumb it down to grade school economics for you? for your sake i am writing a lengthy post so you can understand economics and clear your misconceptions. so read carefully
Defaul DOES NOT have different meanings. Default means breaching you contract, breaking your contract. that where that word comes from
"Default occurs when one party to a contract fails to meet their obligations under the contract"
https://smallbusiness.chron.com/contract-termination-result-default-59223.html
borrowing money/ debt is a "BINDING AGREEMENT" which equates to a contract between 2 parties that includes in its most basic version 3 clauses to be executed precisely
1- how much money was borrowed
2- how much was interest does both parties agree to pay
3- the time of repayment
if you dont execute that contract precisely than you break that contract or you DEFAULT on the contract that where that word comes from.
There is a big difference often times in public and private debt, a private individual who missed payments the credit card company can consider you delinquent, but not default unless the file is handed over to collection’s
Wrong! if you miss one month's of payment you defaulted on the contract. Now its upto creditor whether he gives u more time, late fees, seek collection, sell your asset thats his contingency. and for your sake i have even attached terms of agreement of a bank of america credit card to clear your misunderstanding
"DEFAULT You will be in default of this Agreement if: (1)
you fail to make any required Total Minimum Payment Due by its Payment Due Date; (2) your total outstanding balance exceeds your Total Credit Line; (3) your Bank Cash Advance balance exceeds your Cash Credit Line; or (4) you fail to abide by any other term of this Agreement. Solely for the purposes of determining eligibility and premium payment obligations for the optional credit insurance purchased through Bank of America, you will be deemed in default or delinquent if you fail to make a payment within 90 days of your Payment Due Date"
https://www.bankofamerica.com/conte...atinum-visa-signature-world-mastercard-en.pdf
Why a CC company considers you in default if you fail to make even only 1 month payment because breach of contract of "3- the time of repayment"
In the case of US after the War of 1812 the Federal Government took the debt did a swap; with lower interest rates – but in no circumstances defaulted completely as your applying. As I said before rating agencies and public departments can have different meanings (or the contract can stipulate what will constitute a default):
so even if the federal governemnt "did a swap" the need to take that additional action came when they couldnt pay their orignal obligation or in another unable to execute thier contract. otherwise they wouldnt need to do it and keep paying their creditors as-is no problem. also that "swap" is "settling' the interest to a lower amount because YOU COULD NOT service the original interest agreed upon hence your DEFAULTED
The UOC, however, contemplates no contingency related to payment delays or default. Thus, any discussion of potential default by the U.S. government on obligations related to Treasury securities cannot be based on contractual terms specified in the UOC. The absence of any provision in the UOC mentioning payment delays or defaults presumably stems from the widely held view that U.S. Treasury securities are risk-free assets. If Treasury payment delays or defaults were to become an issue, legal consequences would depend on how the corpus of contract law were applied. (Congressional Research Service:
https://fas.org/sgp/crs/misc/R44704.pdf)..
this shows me how truly little you know about economics. you know what this paragraph is saying. let me also dumb it down for you. it means US government has no contingency (Alternative plan) in case they delay or default on their payments. it does not mean they never default. let me dumb it down a little more
If you have a loan on your house and you are paying mortgage. lets say you missed a payment and so DEFAULTED on your mortgage. the bank CAN (does not mean they immediately will) auction your house that is their contingency meaning an alternative thing they can do to recoup payment. US govt said if we default or delay then thats it buy it at your own risk there is no contingency available
The absence of any provision in the UOC mentioning payment delays or defaults presumably stems from the widely held view that U.S. Treasury securities are risk-free assets
theyre saying we dont mention delays or defaults in our contract because everyone in the world thinks giving us debt is risk free. makes sense u would never put a default contract if ur loaning to bill gates because its risk free
If Treasury payment delays or defaults were to become an issue, legal consequences would depend on how the CORPUS OF CONTRACT LAWS applied
However if we did default (broke out contract) then we will adhere to the laws of that time that pertains to breaking the contract. basically if we default and are taken to court then we will do whatever the court decides. Even the freaking treasuries are telling you how debt are a binding agreements
you cant understand this basic thing the basic fundamental of finance and economics work and whatever little knowledge you have you keep spinning around and whatever doesn't fit that little circle of your knowledge you start saying "going all over the place" you don't even comprehend half the stuff is say.
