Boehner Should Win This Round of Default Chicken: Kevin Hassett

The Second Liberty Bond Act, which helped finance U.S. participation in World War I, established a cap on federal debt in 1917 at the now-quaint level of $8 billion. Today the limit is $14.3 trillion, and according to Treasury Secretary Timothy Geithner, the U.S. will need to exceed that around the end of March.

Geithner has warned that “failure to raise the limit would precipitate a default by the United States,” and would be “catastrophic.” True enough. But that doesn’t mean this isn’t a fight worth having.