The Next Big Crash - Are You Prepared?

[Clement]

A better explanation about government shutdown and default from Wikipedia.

Under US law, an administration can spend only if it has sufficient funds to pay for it. These funds can come either from tax receipts or from borrowing by the United States Department of the Treasury. Congress has set a debt ceiling, beyond which the Treasury cannot borrow (this is similar to a credit limit on a credit card). The debt limit does not restrict Congress’s ability to enact spending and revenue legislation that affects the level of debt or otherwise constrains fiscal policy; it restricts Treasury’s authority to borrow to finance the decisions already enacted by Congress and the President. Congress also usually votes on increasing the debt limit after fiscal policy decisions affecting federal borrowing have begun to take effect.[6] In the absence of sufficient revenue, a failure to raise the debt ceiling would result in the administration being unable to fund all the spending which it is required to do by prior acts of Congress. At that point, the government must cancel or delay some spending, a situation sometimes referred to as a partial government shut down.

It also helps to answer earlier question about whether US government not paying its obligations other than debt is a default. Apparently, it is called government shutdown.

Good day Freedom,

Fair enough, i do not wish to devote any more time to research the legalities and as such am willing to concede the point. So, is this your proposed solution to the US situation? Fail to honour entitlements when they come due and only pay bondholders?