Photo: gurdonark via Flickr
According to the White House, the Treasury Department will disclose its list of spending priorities in the event the debt limit isn’t raised before August 2nd.Both the White House and Treasury have previously denied that they had the authority to prioritise payments, but apparently they are changing their tune as the deadline nears.
It’s safe to say that making payments on the federal debt will be at the top of the list of payments to go out if the borrowing limit isn’t raised and the government is forced to decide which bills to pay.
The White House and Treasury have both used a liberal definition of “default,” arguing that missing any payments — not just those on the debt — would be considered some type of default.
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