Originally Posted by AustinChief
DAMN DUDE. Listen up. A technical default is on obligated payments. Period. We have enough money to pay them INDEFINITELY. But if we allow all payments to go out you are correct, we will default on debt and everything... but that is a CHOICE.
Not paying for Food Stamps or the FBI is NOT A DEFAULT. PERIOD. If you CHOSE to pay for them and then not have enough for OBLIGATED PAYMENTS, then sure you will default.
No deal does NOT mean a technical default unless we decide to make non obligated payments.
Let's be clear yet again. WE HAVE ENOUGH REVENUE TO SERVICE OUR DEBT AND MAKE ALL OBLIGATED PAYMENTS.
You can NOT stretch the term "default" to include non obligated payments on food stamps or education.
Your language is confusing me because you're using terms of art that have a specific meaning, but not in the right way. There are two types of defaults on debt obligations -- (1) payment default (or "debt service default") and (2) covenant default (or "technical default"). Payment default is a failure to pay interest or principal when due (after the lapsing of any applicable grace period). Covenant default is any other failure to comply with the obligations of the contract by which the debt was incurred.
Best to avoid referring to "technical default" in the manner you have been. Just call it a default. "It's not a default if we decide not to pay the FBI or whatever" is fine.
"I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington