[unseelie]

“By law, the president must pay interest first before anything else. “

Again they fail to understand this president’s lack of respect for law.

[abigkahuna]

Maybe someone who is more of a constitutional scholar than I can answer my question. How can the president unilaterally raise the debt ceiling under the 14th amendment?

I my plain reading of section 4 of the 14th amendment, it clearly relates to debt incurred by the rebellious states during the civil war and that the U.S. Federal government would not be responsible for the debt incurred by the CSA, nor debt for slaves becoming free.

How does the 14th amendment relate to today’s current debt situation?

[Hoodat]

We can default on maturing bonds any time the Executive Branch sees fit. All they have to do is to refuse to honor those bonds with the cash available on hand. Of course right now, several times more cash comes flowing into the Treasury each week than there are bonds becoming due, not to mention that those same bonds can be immediately resold without increasing the debt one dime. And don't forget the $21 billion per week that the Fed continues to dump into our Treasury in spite of the debt ceiling.

So if a default occurs, it will be intentionally brought about as part of this Administration's 'scorch-America' policy.

[depressed in 06]

dumBO will secretly get his buddies at the FED to a print more money on the bonds he is selling them.

[SeeSharp]

Newly issued bonds replace maturing bonds with no net change in total debt outstanding.

Er,... No. When we sell new bonds to "replace" (i.e. to pay off) maturing bonds those new bonds will be sold at the current discount rate. If our finances are weaker now than when the old bonds were sold we will have to take a higher discount rate on the new bond sales and the total debt we end up with will be higher.

[TBP]

So the solution is to borrow more money?

[familyop]

Oh, yeah, “default is a bunch of hooey,” Forest...I mean Foster. Just keep your eye on the magic money tree. It produces money without production of anything useful.

[Jack Hydrazine]

Out total debt that includes unfunded liabilities is about $211 trillion.

[HarleyD]

Tell this to the Republicans who keep saying we’re going to default on our debt. It’s frustrating.