It was framed this way by some involved parties, but it's a second independent decision to let that happen.
The other option was for the Treasury to stop issuing checks at a rate higher than than it's inflows.
This is similar to what many of us might have done at some point (college might be one), riding as close to your limit as possible, but making minimum payments and reducing spending as needed.
I'm sure they have a playbook somewhere that sets priorities of payments. Actually defaulting on a tranche (does that term apply here?) of bonds would spike the rate so much, they'd avoid it for all but paying themselves, probably.
No all obligations are equal, and the AAA rating is only on some of them. U.S. bonds are AAA, but you can be sure that your future Social Security benefits have junk status.
It was framed this way by some involved parties, but it's a second independent decision to let that happen.
The other option was for the Treasury to stop issuing checks at a rate higher than than it's inflows.
This is similar to what many of us might have done at some point (college might be one), riding as close to your limit as possible, but making minimum payments and reducing spending as needed.
I'm sure they have a playbook somewhere that sets priorities of payments. Actually defaulting on a tranche (does that term apply here?) of bonds would spike the rate so much, they'd avoid it for all but paying themselves, probably.