Unconscionable no doubt, but not default.

Contra to Neal Wolin, if bondholders needed sign that under no state of affairs will any credit losses on US bonds ever be allowed, then prioritizing debt payments over the men and women who have shed blood for their country would do it.

If seniors across America start having their chemo cancelled so that Arab Sheik’s get their bond payments on time then US creditworthiness will go through the roof.

Its already sky high of course, but a wealthy powerful  government that is willing to see its weakest citizens lose care before it allows its creditors to miss a single payment would be the most credit worthy entity imaginable.

Economics is not a morality play.