Earlier quoted context omitted.
Not quite. The US Government operates on an extralegal basis (ie they're willing to cross any line), and roughly 85%+ of all new debt is purchased by the Federal Reserve. What very specifically is not going to happen, is the shut down of the military industrial complex of which the NSA is such an integral part. So long as the dollar (Federal Reserve Note I should say) remains the global reserve currency, the national…
Dollar being the global reserve currency is the real linchpin to everything, but right now US Government seems ready to undermine that with their squabbles over healthcare. I mean, the upcoming default wouldn't destroy the dollar, but it would somewhat reduce the role of dollar reserves and treasury bonds in global markets.
If a credit card company refuses to raise your limit, that is not a default. A default is when you stop making payments on your debt. As long as the government has enough tax income to pay interest on its debt, there is no default. Calling it a default is a scare tactic to get their credit card limit raised.
The solution is for governments to spend only the tax revenue they receive - no more. Not only should the debt ceiling not be raised, it should be slowly lowered to zero over the next 10 years. If the government had to explain to everyone how much their taxes would need to be raised in order to invade Syria, etc., people might actually pay attention. Just my opinion.