Ref: Amber Phillips, “Still no debt ceiling deal”, May 25, 2023
Subject: U.S. Hold Off Default
The U.S. does not have to default on its debts. It can hold off indefinitely by paying no more than it receives from the states.
Looking at the Rockefeller Institute of Government Balance of Payments report, March 2023 (p. 17), we can see that the 50 states receive different amounts from the federal government compared to how much they send to Washington on a per capita basis.
Connecticut receives the smallest return from the U.S., getting $1.05 for each dollar sent to the U.S.
Kentucky receives the most from the U.S., $3.41 for every dollar they send.
Pres. Biden should immediately issue an Executive Order that each state will only receive, on a per capita basis, in ratio to what it has sent.
Connecticut will receive $.95 of each dollar they should receive.
Kentucky will receive $.29 of each dollar they would normally receive.
This will continue until the debt ceiling issue is resolved.
Sent to Washington Post, May 25, 2023
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