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[quote=Anonymous][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]

Withholding spending money that has been appropriated would be a manner of default.  The law requires the executive to spend appropriated funds for its purposes.  It has a legal obligation to pay SS benefits, make grants to states, pay Medicare claims, pay employee salaries and benefits, pay veterans benefits, etc.  The debt limit basically puts the executive in a situation where it has to violate a law because the law caps the amount the can be borrowed and the amount that can be raised via taxes to less than the amount that is required to be spent.  [/quote]

So we have to put up hostage-taking and extortion until the next revolution/constitution?[/quote]

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