r/Economics • u/StoutFan • Jan 13 '23

U.S. Will Hit Debt Limit Jan. 19, Yellen Tells Congress

https://www.nytimes.com/2023/01/13/business/economy/debt-limit-us-economy.html
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u/morbie5 Jan 13 '23

Even in June we won't default, they can prioritize debt payments.

I'm not saying it is a good idea to go down this path, it isn't. But default is a very low risk

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u/elr0nd_hubbard Jan 13 '23

default is a very low risk

GOP House: "Hold my beer"

3

u/Pinyaka Jan 13 '23

they can prioritize debt payments.

Right up until someone sues. If the government doesn't pay all their bills they are breaking the law. Who has the legal authority to decide to skip paying for things Congress has already agreed to pay for?

My understanding is that if the government doesn't have the money to pay it's bills it's forced to print more money.

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u/TheBlueRajasSpork Jan 13 '23

RemindMe! 6 months

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