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US Treasury has never defaulted on its debt? Not so fast, historians say
• WASHINGTON (AP) -- You hear the same proud claim every time Washington wrestles with the debt limit: The United States has never defaulted. But the record's not that clean. America has stiffed creditors on at least two occasions.
• Once, the young nation had a dramatic excuse: The Treasury was empty, the White House and Capitol were charred ruins, even the troops fighting the War of 1812 weren't getting paid.
• A second time, in 1979, was a back-office glitch that ended up costing taxpayers billions of dollars. The Treasury Department blamed it on a crush of paperwork partly caused by lawmakers who -- this will sound familiar -- bickered too long before raising the nation's debt limit.
• These lapses, little noted outside financial circles in their day, are nearly forgotten now.
• Indeed, Treasury Secretary Jacob Lew frequently declares that the United States has always met all of its obligations; a Treasury spokeswoman declined to discuss any possible exceptions. President Barack Obama, reminding Congress of the urgency of raising the debt limit before a Thursday deadline, warned of "the chaos that could result if, for the first time in our history, we don't pay our bills on time."
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Hopes for progress high as US, partners meet with Iran this week over its nuclear program
• VIENNA (AP) -- Don't expect a breakthrough -- but the chances for progress have seldom been better. This is the message coming from Iran and six world powers ahead of renewed talks this week meant to end a decade of deadlock on Tehran's nuclear program.
• The two sides come to the negotiating table in Geneva on Tuesday and Wednesday amid a feel-good atmosphere that began with the June election of centrist Iranian President Hassan Rouhani. Subsequent conciliatory comments by Iranian officials were capped last month by a phone call between Rouhani and President Barack Obama -- the first conversation between U.S. and Iranian leaders in more than three decades.
• Iran insists it does not want nuclear weapons. But building on the momentum of that telephone call, Iranian officials from Rouhani down say their country is ready to (Continued on page 27)
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