Political Translation of “Government Default”

 Politicians in Washington have a totally different interpretation of government default than what it is in the real financial field.

To politicians, true danger is any event that doesn’t help get them elected or keep them in office.

So why not make the debt ceiling higher? It allows them to spend more despite higher budget outflows

In the real world, bondholders would prefer to have their interest and principal payments held up temporarily, for assurances, the U.S. were trimming its budget to make all its payments in the future.

Not the other way around, with government kicking the proverbial problem down the road every few months until the U.S. becomes another bankrupt Greece or Portugal. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole tweets.)