[Tublecane]

“the bond holders get paid first (14th amendment & all that)”

What would that have to do with the 14th? Ex post facto or obligation of contracts maybe, but probably not.

[Tribune7]

The 14th Amendment says "The validity of the public debt of the United States, authorized by law . . . shall not be questioned."

The Supreme Court ruled in 1935 that that means the U.S. has to pay bondholders (albeit not necessarily in gold).

Does that mean that the bondholders literally have to be paid first? OK, that was figurative, but of the $200 billion coming in in August the bondholders are guaranteed their cut which if IIRC from Karl Rove's appearance the other night on Hannity is $20 billion.

[muawiyah]

It's in "Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned......"

The Social Security system PURCHASES public debt with the proceeds of FICA (a tax on income). They gots' to pay it.

[greeneyes]

Creditors of the car companies did not get paid in the order they were supposed to. The unions were put ahead of them, and he got away with it.

No telling what Obammy and the Czars will do. Probably default just for spite, and blame it all on the Republicans.