Debunking the Democrats’ Default Dramatics

[Geee]

American Spectator:

In an interview last Wednesday on CNBC, President Obama said, “When you have a situation in which a faction is willing to default on U.S. obligations, then we are in trouble.”

While he is speaking of House Republicans, the only faction that actually fits that description is the administration itself.

In a speech in Maryland later that day, Obama pressed the default issue again: “As reckless as a government shutdown is, as many people as are being hurt by a government shutdown, an economic shutdown that results from default would be dramatically worse.”

Default means the inability of the U.S. government to service its debt, to make principal and interest payments on outstanding bills, notes, and bonds (the difference among those being their time to maturity). This is not to be confused with payments due to others, whether contractors, vendors, or recipients of entitlement programs, each of whom would have a serious issue were cash flow to cease but none of which is the same as a true national default.