Mini-default, lightning default, technical default, “stop me a dollar and I’ll pay you back tomorrow” or administrative problems. Publicly, the US has fallen into default three times and is now close to a new one. Between the War of Independence, the Civil War and the prelude to World War I. But no one wants to talk about the fourth failure. Don’t even consider the fund. It happened in 1979, under the Jimmy Carter Administration and lasted three weeks. They stopped collecting 120 million hostages.
Three bills worth $120 million were paid between April and May 1979. “Delays in payments are due mainly to technical and organizational administrative problems,” according to a report by Congressional Research, a nonpartisan public policy. Congressional research institutes. For this reason, it is not considered that the US has officially registered a breach of its economic obligations, but that the consequences have been followed.
First, Congress changed the law to prevent anything like this from happening. The debt ceiling was combined with the accounts, and it was declared that when certain expenses were verified in the tables, the debt issued to make up those sums was authorized by him.
Second, there was a permanent fall in US debt that forces us to yield. Initially, issues became more expensive by 60 basis points and this affected the long term. Economists Terry Zivney and Richard Marcus believe that The Treasury received a bill of 12,000 million dollars and had an influence on the next level of rising interest rates that began in the eighties..
According to a report from the US Congress; The cashier’s office still records 90% of things manually. The process had barely begun to be automated. “The US Treasury’s audit writing operations also failed in the midst of an unexpected relocation of word processing equipment,” the report says. About 4,000 cashier’s checks went missing.
It is most curious that things happened in a very similar way in the negotiations between the Republicans and the Democrats for air. The remaining non-payments were made for more serious reasons and in the context of the war.
It is not easy to start a state, and even more so if you have to break colonial ties. The first US radio broadcasts were made in 1775 by the Continental Congress on behalf of the British colonies that rebelled against Great Britain. It was first printed in Spanish dollars and later in continental dollars.
The first issues put their currency into circulation. The first signs, however, gradually diminished, and the public began to perceive that neither the new states nor the Continental Congress had the will or ability to recall them. In November 1779, Congress announced a 38.5 to 1 devaluation of the continental dollar, which meant the practice of defaulting on debt.
Until the close of the Civil War in 1861, the country did not again complicate its life with debt problems. Since the first dollar of the United States of America was issued. Confederate currency was accepted in the southern states and associated with debt. The new currency, known as the green ticket, was used for ink and was no longer exchangeable for gold, which led to a second non-payment and a second withdrawal.
In 1934, there was a partial default on Liberty bonds, gold bonds issued by the US Treasury during World War I to cover war expenses. The bonds were pious. When Franklin Roosevelt took office in 1933, interest-only payments wiped out the reserves.
Since the 1890s, the Treasury had been short of gold and had created this short by issuing new bonds to attract gold to pay the interest on the previous holdings. The result was that in 1933 the total debt was $22 billion, and the supply of gold to pay even the interest would soon be insufficient. Roosevelt decided to default on the entire national debt, refusing to redeem Americans in gold and devaluing the dollar by 40%.