Publicly, the Obama administration’s line in the sand on the debt limit is August 2nd. At that date, according to Obama, the nation will be unable to continue making payments on the national debt.
But privately the Obama administration seems to be singing a different tune with the President telling bankers in private calls that the nation won’t default on its debt even if the debt ceiling isn’t raised.
Conservatives have argued for some time now that the August 2nd deadline is mere political theater, and that the nation could continue paying on its debt obligations past that deadline though such payments would require spending cuts elsewhere. Liberals have repeatedly stuck to the line that the deadline means default.
Obviously Obama is saying one thing to the public, no doubt to literally scare up support for raising the debt ceiling, and another thing privately.