No, the U.S. will not default on its debt, no matter what!

[townpete]

Another myth busted:
 
No, the U.S. will not default on its debt, no matter what
 
On any given month, the tax revenue flowing into the Treasury far exceeds interest payments — by a lot. Last month, for example, the Treasury took in $365 billion in tax receipts and made $21 billion in interest payments. For fiscal 2015, which ended Sept. 30, those figures are $3.2 trillion in tax receipts versus $402 billion in net interest.
 
The U.S. government’s ability to service its debt — the principal can be rolled over — should not be an issue. But Treasury has made it one, claiming in 2011 and 2013 that it lacks the authority to prioritize debt payments, something households do all the time. Confronted with insufficient funds for both the monthly mortgage payment and credit-card interest, guess what they do? They pay the mortgage because the consequences of missing a payment are much more serious.
 
Treasury publicly denies it has the authority to pick and choose among 80 million monthly payments, saying its computerized system would have to be re-programmed.

 

[Glenn Quagmire]

Thanks for posting this. From the article:

"The Bipartisan Policy Center outlines various options for the Treasury, absent the authority to borrow. It could elect to make what are considered to be essential payments in November: interest on the debt, Social Security, Medicare, Medicaid, military salaries, unemployment compensation and food stamps, totaling $147 billion. But it would have to forego things like tax refunds, federal salaries and spending for various departments, all of which would have a cascading effect.

So what would you do? Here’s my advice to all parties involved. The Republicans should pass a clean debt-limit increase, which merely enables the U.S. to pay for previously approved spending. It can deal with other priorities at a more appropriate place and time.

The Treasury should avoid threats of default. The U.S. may be proprietor of the world’s reserve currency, but it can learn something from less-creditworthy nations. They work hard to convince potential bond buyers that their top priority is servicing sovereign debt. Credibility, once lost, is hard to reclaim."

 

[delldude]

You've just proven the president to be a liar with that info.

 

[townpete]

Thanks for posting this. From the article:

"The Bipartisan Policy Center outlines various options for the Treasury, absent the authority to borrow. It could elect to make what are considered to be essential payments in November: interest on the debt, Social Security, Medicare, Medicaid, military salaries, unemployment compensation and food stamps, totaling $147 billion. But it would have to forego things like tax refunds, federal salaries and spending for various departments, all of which would have a cascading effect.

So what would you do? Here’s my advice to all parties involved. The Republicans should pass a clean debt-limit increase, which merely enables the U.S. to pay for previously approved spending. It can deal with other priorities at a more appropriate place and time.

The Treasury should avoid threats of default. The U.S. may be proprietor of the world’s reserve currency, but it can learn something from less-creditworthy nations. They work hard to convince potential bond buyers that their top priority is servicing sovereign debt. Credibility, once lost, is hard to reclaim."

 
It can deal with other priorities at a more appropriate place and time.
 
I think that's part of the problem tho, kicking the can down the road.

 

[Glenn Quagmire]

This ties directly with governing by CR. It is costly. It would be devastating to default on any of our debt. Don't think so, just run up a bunch of debt and not pay it. See how you are treated the next time you need a loan.

"Credibility once lost, is hard to reclaim"

 

[delldude]

This ties directly with governing by CR. It is costly. It would be devastating to default on any of our debt. Don't think so, just run up a bunch of debt and not pay it. See how you are treated the next time you need a loan.

"Credibility once lost, is hard to reclaim"

 
Just wait and see the repercusiions of the Fed raising the interest rate.