Who do we default on if they don't raise the debt limit?

The Federal Reserve, the Social Security and the Medicare/ Medicaid Trusts are the three biggest domestic creditors. (in that order) China is a distant fourth.

The nation defaults mainly on domestic debt. Our foreign debt totals approximately 2.4 trillion dollars of about 14.5 trillion total. These are monies owed, already spent, hence a debt, right. So yes, it is the American people who will lose out on entitlements such as social security, medicare, veteran's benefits, etc.

Some state that the government has revenue of around 150 billion dollars a month which should cover our debts and entitlements. I don't know if it will or not, and I doubt that it would. What I don't like is the idea of The U.S. living from paycheck to paycheck, which is what the conservatives suggest we do. Not very fiscally responsible if you ask me.

Much of this debt can be offset with revenue increases as we saw during the Clinton administration, but now the republicans have the power to hold the debt ceiling under water until our economy drowns, or until everyone else in the country sees things their way, which is exactly what has happened.

It is proof positive that these freshman tea party congressmen have no idea how to legislate effectively. Their utter lack of compromise, and the extent to which they will go to achieve their means is a bane to the American legislative system.

- Who do we default on if they don't raise the debt limit

The American people, basically. If the U.S. defaults currency will be worth almost nothing and so everyone's savings will be wiped out. The ultra-rich won't care because they will still be rich as they have been able to stockpile gold and other precious metals. There will be no middle class, just ultra-rich and poor. People will be forced to work for minimum wage jobs because there won't be any other kind. Most companies will be wiped out because there won't be anyone to buy their products. You can forget about health care or retirement, it will just be work till you're too old or too sick and then die.

They will default on all expenditures other than debt interest, SS, and military personnel. The monthly income will cover those, and I would imagine they will be the first priority. However, that means Treasury will have to apportion whatever income remains.

actually you've spent the money - maybe for emergency. but the greatest wonder of all is the way you've managed to spend too much. actually I did worry before Bush started the second war. it was not the right time. I can agree with toppling the Saddam regime but ... now it's history - no use anymore to criticize.

the American people hold more debt than China, plus alot of the debt is owed to the social security fund...too bad we didnt elect GORE cause he was going to put it in a lockbox

The default is a joke.

We have the money to pay our obligations - we just can't keep spending it on crap.

Borrowing MORE is how you get a default.

And RAISING the debt limit is how you borrow more.

We default on our debts to ourselves and to other countries so our credit rating goes down and that hurts foreign investment in America and hurts other financial markets.

Military contractors like Haliburton.

Income is MORE THAN enough to cover all of our debt obligations. Default is IMPOSSIBLE unless Democrats break the law and deliberately CAUSE it like they all said they would.