Keeping the ceiling without default?

Any responsible commentator understands that a US Government default would be unacceptable. Most have assumed that that means we must hold our nose and accept an increase in the debt ceiling. But one commentator suggests that without a ceiling hike, the government can continue to pay its debts from current cash flow, and this would force the government to start shrinking.

I would want a careful legal and financial analysis of the idea before I would embrace it, but it’s certainly worth looking at.

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