Originally Posted by Amnorix
That's not my understand (in terms of being able to make obligated payments). My understanding is that the treasury will have about $30 billion cash on hand at midnight tonight, plus whatever tax revenues come in, to pay its obligations.
My understanding is that by NO LATER than November 1, it will be unable to meet its payment obligations. November 1 is a magic date because it includes Social Security, military pay, veteran's benefits, and interest on government obligations. Those alone total over $67 billion.
You are correct that if we continue to pay non-obligated payments right up until the 1st we would likely default(I haven't run the numbers to be sure but let's roll with that). That is a CHOICE to make those payments from the 17th to the 1st. Actually it was a choice we already made starting Oct 1st. So if we default it is because we kept paying non-obligated payments up until we had to make our 1st of the month balloon payment on obligations.
It's the age old failure (of both parties) to ever make hard political decisions when faced with them. Instead we kick the can down the road in the form of debt increases.
I am not advocating drastic deep cuts btw. I am simply trying to clear up the rash of misconceptions regarding what default actually means and what our true OBLIGATIONS are. I am fine with a debt increase right now since we have no plan in place to handle the lack of one. If I were in charge of this mess I would have made ONE demand and one only. I would increase the debt limit IF we agree to put a system in place to allow HR807 or something similar to effectively be put in place within the next 3 years.