For months conservatives have been saying that regardless of whether or not the debt limit is raised by August 2nd, the United States is in no danger of defaulting on its debt since the Treasury Department will have more than enough revenue to make interest payments. On May 23rd, Sen. Jim DeMint, R-S.C., sent a letter to Secretary Tim Geithner demanding that he stop creating uncertainty in the market by denying that the Treasury Department was incapable of prioritizing federal payments on the debt above other government obligations.

Geithner responded with a June 28th letter categorically denying that the Treasury has any capability of prioritizing federal payments: “For all of these reasons, the idea of prioritization has been rejected by every President and Secretary of the Treasury who have considered it. It is unwise, unworkable, unacceptably risky and unfair to the American people. There is no alternative to enactment of a timely increase in the debt limit.”