Prioritizing interest payments is essential. The scum running the country might default just to default.
there is no point to prioritizing payments. a Default on any payment will be seen the same way by market forces. If you choose to pay your car loans but not your credit card, when you go to buy a new car they won’t care that you have always paid them first, they will just see that you have had trouble making your payments. The market will react to ANY default. You dont want to be holding the debt of somone that is prioritizing payments, even if you are at the top.
“The scum running the country might default just to default.”
At this point, that might be the best possible outcome. If we default, the gravy train comes screeching to a halt, and there will be no option but to shrink government considerably. Forget about raising the debt ceiling, what is the point if nobody would loan us money?
It might be like a short term balanced budget amendment, in practical effect.
Or to put the nail in the coffin of the dollar being the world's reserve currency. Such a move would be nothing less than treason when national security implications are considered.
I thought that was already the law.
I agree, but I’m not sure a default is the end of the world as some would have it. Greece is still there last I checked.
Some dumb creditors who’d invested in Greece lost money.
If dumb creditors would quit loaning us money wouldn’t that be a good thing?