No. of Recommendations: 2
A U.S. government default (some bills unpaid)
Not making debt payments would be default. Not paying other bills isn't defaulting, it's just not paying other bills. The value of our currency and of our debt--which underlies the value of our currency--is centered on paying our debt.
Not meeting our contractual obligations--not paying IAW contract terms--would call into question the value of the government's word in its relationship with the various companies with which it does business, along with those business' ability to meet their own contractual obligations (payroll, suppliers, etc), and those are themselves very serious, but they're more domestic economy than international relations and power.
Eric Hines
