Commentary
Every few years, Washington approaches a debt ceiling limit, and worries of default multiply. Theoretically, default is possible, but practically speaking, it is never a real possibility. Even in an extended government shutdown, Washington has resources that will allow it to meet principal and interest payments.
In this matter, it is critical to realize that Washington has always and will always prioritize its debt obligations. Whatever politicians say about the primacy of programs near and dear to the hearts of important constituencies, they know that the stability of the government, the financial system, and hence on, the economy depends on meeting the government’s debt obligations….