I understand that the monthly tax collections are greatly in excess of the principal and interest on the debt.
This being so, how is default possible?
They have to pay a lot more than just debt service every month.
Treasury bond auctions happen quite often.
When that inflow of borrowed cash stops, it doesn’t take long before the cash runs out.
Once the debt ceiling is reached, Treasury bond auctions have to stop.
It is made possible only if:
a. The President chooses to default.
b. Or so badly mismanages the cash flow that default is the result.
In either event, the burden is Obama's -- regardless of what lies he might tell.