say it with me…

…no debt ceiling increase does not equal default.

That only happens when the treasury doesn’t make payments on the debt.

[Update 2013-10-04 19:20:55] Here is a good article explaining how the only way a default could really happen is if the Treasury refuses to prioritize spending. And here’s another.  In short, it would be like someone who makes $100,000 per year declaring bankruptcy over a $7,000 credit card bill.

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