That is not paying one’s debts — it is only paying the interest on the debt, something quite different.
WE will default because Lew was already told not to prioritize the payments.
Chris Parker from Parker Wealth Management helped explain this in laymen’s terms this morning on WTAM 1100. He claims this is a real test in the control of the optics of what is going on in DC.
We take in 225 billion a month. We only need about 20 billion to service the debt. So that leaves 205 billion to fund the government’s activities and programs.
With no increase in the debt ceiling then the government is forced to live within its means. Basically this becomes a forced austerity, forget sequestration, it is a forced austerity and Congress...more precisely the House of Representatives (Republicans) will have to decide what programs remain funded or how fully funded they need to be.
Military, Welfare, Obamacare, SS, EPA, NSA, DOJ etc.
According to Chris Parker, this will literally mean the government must prioritize payments. This could be devastating politically to the democrats and republicans depending on who controls the spin.
Republicans tend to be financial wonks and not very good at explaining to those affected this kind of stuff as where the democrats are sooooo very good at the whine.
But, long-term this can’t go on and we need tighten the belt. 0bamacare with its subsidies is not self-sustaining. Think of 0bamacare as the knife in the very heart ...