Originally Posted by Race Card native
It's not about logic. It's about understanding how fund flows actually work and how the real world works.
You've had another person tell you the exact same thing. I've listened to multiple fixed income managers say the same thing over the last two weeks.
You can believe it or not. Or, you could actually go look it up for yourself (I'm not holding my breath).
Got it. So the current govt shutdown DID NOT reduce outlays from the T? Cuz those funds just flow nonstop regardless. So Jack Lew didn't say that the shutdown bought him more time? WAIT.. YOU KNOW MORE THAN JACK LEW! Shit, sorry man, I didn't realize!
To clarify here, this is not about the TREASURY doing a damn thing. No prioritizing or delayed payments. This is about reducing the demand for outlays below the level needed to avoid default. I would love to hear your made up reason why this is impossible. Or why it is a "technical default."
It certainly is political suicide and would be painful as hell shutting down that much of govt... but THAT isn't your claim. You have been steadfast (and wrong) in claiming IT WILL BE DEFAULT.