Is there a set list of the order in which federal govt obligations must be paid?

[muriel_volestrangler]

People say that if the debt limit weren't raised, then the US government would have to default on interest debt payments. Is this because there is already a law saying those must stop before, say, paying bills to military contractors - or Medicare, Medicard, Social Security payments, government salaries etc.? Or are people just saying that the interest debt payments would be the wisest thing to leave unpaid?

(Because the government does still have tax revenue that exceeds the debt interest payments - but it can't pay that and the rest of government payments for normal functioning without borrowing more)

[dipsydoodle]

1. Interest on US government bonds ?

The answer may effectively be regardless of or outside the law and associated with best interests i.e. the repercussions of not doing something.

Cease to pay interest and the buyers would disappear. China and Japan have apparently already reduced / stopped buying - maybe they know the writing is on the wall.

Without borrowing more............The US is running with a brick tied to its neck attached by elastic. Great until you stop running. That's an old analogy from the past associated with masking debt.

An equally important is how long the petrodollar scam can persist - the artificial demand prop for the US$.