The Washington Post carried the murmurings of debt cancellation earlier.

A hare-brained consideration if ever there was one. If anyone in the US admin was floating such an idea it would have been slapped down pretty darn quickly. Bond markets would freak.

Kudlow dousing the speculation:

  • The answer is absolutely not. The full faith and credit of U.S. debt obligations is sacrosanct, and that includes, by the way, maintaining the dollar as the world's reserve currency
  • There is nothing to those stories that I heard about an hour ago.
  • Absolutely not.