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View Diary: Public debt of the United States shall not be questioned: the 14th Amendment and the debt ceiling (304 comments)

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  •  Is skipping other payments default? (1+ / 0-)
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    ferg

    The debt clock says only about 260 billion is interest on debt. It seems like that is the only thing that has to be paid. The other spending may be a congressionally authorzed obligation but it is not debt. It seems to me that a hardball player would selectively determine who to pay. For instance, make authorized payments to only those state that pay more in taxes than the ones (mostly red) that cost more than they pay. I bet there are a few choice red state military bases that could be selectively targeted for closure as well. It would probably bring the seccesionist fervor to a hard boil but these are the same people threatening to do harm to the US by forcing a default if they don't get their way.

    •  Service of Debt (0+ / 0-)

      I discussed this issue in my post.

    •  It's a cash flow thing. (0+ / 0-)

      Debt has to be paid or rolled over as bonds mature. Also, interest payments don't come due on a regular monthly scheule. And tax revenue comes in rather haphazardly.

    •  The Administration (0+ / 0-)

      would have to pay more than interest. It would also have to pay principal on all the debt that matures. As it pays off debt, and gets under the ceiling, it can roll over debt; but it's a complex balancing act that will be extremely disruptive for Government and the people. One good thing; if things developed that way, I think the Rs would get blamed and that it would destroy their party. As many here know, the Red States rely on Federal spending more than the Blue States. So R politicians in those States will have pay for their stupidity in spades.

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