Return of the Default Deniers

Playbook: “Amid the debt ceiling standoffs of 2011 and 2013, and warnings of global economic catastrophe, a novel proposal gained traction on the right: Rather than defaulting on bond obligations and sparking a broader calamity in the markets, the federal government could, once the ceiling is reached, simply pick and choose which bills to pay.”

“Such ‘debt prioritization’ schemes never went anywhere. Democrats branded their proponents ‘default deniers’ and firmly opposed their efforts. The standoffs were resolved, and the notion of favoring bondholders first was forgotten by all but a devoted band of conservative budget hawks.”

“Now what’s old is new again.”