Originally Posted by Amnorix
I guess. I know that many hedge funds and other big players in the private world have crunched alot of numbers and all agree that by 11/1 we'll be out of money.
The question is what items are truly optional, and what are not. I would think that making, for example, Social Security payments and paying the military aren't in any real sense optional.
I also note that, for example, there are federal wage and hour laws. I have no idea if the federal government itself is exempt from them, but it would seem to me that if the feds failed to pay anyone's salary (or any department's salary) for personnel not furloughed, then they would be inviting a massive and expensive class action.
I understand. You're separating debt obligations (obligations to make payments on US government issued bonds) from other obligations (federal workforce pay, etc.). I'm uncertain, however, whether at least some of those other obligations aren't OBLIGATIONS in the sense that you mean. I assume Social Security payments are legal obligations, though it's not on sovereign debt.
I am separating debt obligations but I'm willing to discuss all other actual OBLIGATIONS. Where the problem lies is that many see any old thing as an OBLIGATION when in fact it is not. Social Security is a prime example. That is an OBLIGATED payment. I am unsure on Medicare but let's lump it in for good measure. Medicaid on the other hand IS NOT.
I don't think anyone is arguing that if we stay the course we are on we can't make even our obligated payments on 11/1 we MAY be able to service our debt but that is iffy as well. That is a choice
we made Oct 1st and continue to make since no one believes the debt ceiling will really not get raised.