Yes, another post on default. But a short one.
The irony of the discussion regarding payment prioritization in the event of a default on 8/2 is that if we indeed honor our obligations to pay interest on the debt (as is universally acknowledged we would do) first as part of a prioritization scheme…. the effect will be to pay the Chinese and other foreign soverign debt-holders before we pay salaries for the troops (or Medicare, or air traffic controllers). Can’t imagine that was the plan.