Sky not falling
The US doesn’t need to default on its debt even if the debt ceiling is not raised
There is no economic reason that a debt limit should force a default. The Treasury could easily pay interest and principal on treasury debt before any other payment. Congress could even pass a law stating that fact.
Treasury secretary Janet Yellen should say out loud, right now "we pay principal and interest on treasury debt first, before anything else." President Biden should back her up.
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