The nation does not really have to default. The nation has an enormous income. It merely has to prioritize. But, as Jack Lew said to Chris Wallace today, this regime will not prioritize.
It's sort of like if you maxed out your credit card and the bank refused to up your credit balance. You have a good job, you can pay your bills, you might not go out for dinner three nights a week, you might not throw that catered party, but you can pay your bills.
That's the position of the government. To imagine that if we cannot borrow more money, we can't pay any of the bills is plain silly. It's like saying that the entire country has no income, no one is paying taxes, no tariffs or fees are being collected. There's no income. In actuality there is plenty of income.
Yea, but there is this little thing called insolvency.
Edit: The UK have laws about it.
United Kingdom insolvency law - Wikipedia, the free encyclopedia
If the US government is insolvent, it doesn't have enough income to pay it's obligations and it is bankrupt. The US is not insolvent. It merely has to cut down on the frills a tiny bit. No more 100 million dollar vacations for instance. That 300 million the US is giving to the Syrian terrorists, that gets scratched off the list. Likewise another 300 million to Palestinians. Egypt is getting 250 million.
Then there are the parties, junkets, bonuses (for doing an ordinary job) and the useless studies like how fast a shrimp can run on a treadmill. Government waste costs 16 Billion dollars a year.
Government Spending Waste: 25 Wasteful Items - Business Insider
There there are 160 agencies that duplicate the work of other agencies wasting billions more.
GAO finds billions in wasteful, duplicative federal spending - The Hill's RegWatch
In reality, we cannot continue to borrow money just to pay the interest on the money we borrowed last time while we fritter away our income. No one can. No person, no business, no country can.