White House: No default on debt

Of course not. But I think they'll still be a downgrade by the rating agencies (but after recent fiascos, how much credibility do they have?) because of the vast amount the government (that''s us, the taxpayers) has accumulated.

HOWEVER a downgrade will not be the earth-shattering event it's be portrayed as in much of the media. Interest rates may go up 1/4 to 1/2 per cent.

White House Admits Treasury Will Prioritize Payments

Both the White House and Treasury have previously denied that they had the authority to prioritize payments, but apparently they are changing their tune as the deadline nears.

It's safe to say that making payments on the federal debt will be at the top of the list of payments to go out if the borrowing limit isn't raised and the government is forced to decide which bills to pay.