Obama has no intention of allowing the U.S. government to default on its financial obligations regardless of whether the government's borrowing limit is raised....
This means that the president has been bargaining in bad faith with congressional leaders by raising the specter of a default, knowing full well he won't allow it to happen. This is another way of putting it: the president has been lying to the nation.
While officials from the Obama Administration raised their rhetoric over the weekend about the possibility of a debt default if the debt ceiling isn't raised, they privately have been telling top executives at major U.S. banks that such an event won't happen, FOX Business has learned.
In a series of phone calls, administration officials have told bankers that the administration will not allow a default to happen even if the debt cap isn't raised by the August 2 date Treasury Secretary Tim Geithner says the government will run out of money to pay all its bills, including obligations to bond holders.
Geithner made the rounds on the Sunday talk shows saying a default is imminent if the debt ceiling isn't raised, and President Obama issued a similar warning during a Friday press conference after budget negotiations with House Republicans broke down.