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For instance, Representative Daniel Webster of Florida has put forward a bill ordering the Treasury to pay obligations to bondholders, followed by troops, national security "priorities," Social Security and then Medicare.
The Treasury secretary underscored the president's position that he will not negotiate over an increase – House Republicans are demanding cutbacks in Mr. Obama's signature Affordable Care Act – because it is a responsibility of Congress, with the president, to protect the credit of the country and pay obligations owed.
"Without substantial government intervention," said another FDIC official, bank regulators and Citigroup "project that Citibank will be unable to pay obligations or meet expected deposit outflows next week," according to the report.
The White House Office of Management and Budget said in a statement that the administration "strongly opposes" the debt payment prioritization measure, which it described as "political gamesmanship" and said would result in Congress refusing to pay obligations it has already agreed to.
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The deal imposed a very high base price for gas of $450 per thousand cubic meters; a strict payment regime, which following any default could force Ukraine to pay for gas in advance; very high take-or-pay clauses that forced Ukraine to pay for gas it could not possibly use; and no ship-or-pay obligations on Gazprom (hence Gazprom, without penalty, could reduce shipments to Ukraine).
But Siegel says unless he's permitted to pay those obligations over 30 years, he will foist a $500 million obligation on the Pension Benefit Guarantee Corp.
Failing to pay family obligations long ago lost the boys-will-be-boys treatment.
Treasury officials respond that the failure to pay any obligations would set off a crisis.
"The country has chosen to pay its obligations and reach an agreement [with lenders].
"We strive to be able to pay our obligations on time.
In a deflationary environment, a debt-ridden company would have to pay back obligations with increasingly valuable dollars.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com