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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Just a reminder that defaulting on debt does not “save taxpayers $$.” This is money already spent. [/quote]

There is no defaulting being discussed.  What would happen is the Treasury would not be allowed to borrow beyond a certain limit, so some spending would have to be withheld.
There would be an issue of having to pay debt that rolls over, and then they are not allowed to borrow again to make those payments.
[/quote]

That is not how it works.  The debt ceiling is about existing obligations being incurred, and refusing to raise the limit does not somehow magically make the spending and obligations vanish.  It only means you can't pay for them, which means DEFAULT.  And when the government defaults, its rating gets degraded, and interest on loans and obligations goes up causing debt service to increase.  It's a move that would not stop anything, it would only place America in more debt and make the country more dysfunctional.[/quote]

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