Post
Topic
Board Economics
Re: If the USA can't raise the debt ceiling in time what will happen to the price?
by
Andris
on 31/07/2011, 17:10:04 UTC
Not much.

The 14th amendment does specify that debts must be paid. This means Social Security and debt servicing such as interest. Word is bond-holders have already been made aware by the Obama administration to pursue this route if necessary.

Sucks for potentially everything else in the US budget, sure, which won't be good for the economy. But the government is still good for its debt.