“ After the default, investors no longer saw Treasury securities as totally risk-free options, so the government suddenly had to pay a higher interest rate when it wanted to borrow money. … As the result of the small 1979 default, the Treasury had to up the interest rate it was paying by 0.6 percent on all of its debt. That may look like a tiny number, but when it’s spread across the Treasury’s entire debt, it adds up quickly.
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mental_floss: When the U.S. Government Defaulted in 1979 (via evan)
1979 Theory has been proven.
THIS IS NOT A HOAX
(via evan)
