Yesterday staff on the House Financial Services Committee released a report critical of Treasury activities during the debt ceiling crisis. Treasury told Congress that the department was unable to prioritize debt payments to keep the government from violating its borrowing limit.
Of course, Treasury had the ability to prioritize payments. Emerging economies have done this for years!
The 322-page report includes documents received under subpoena highlighting table top exercises to precisely prioritize debt payments – http://financialservices.house.gov/uploadedfiles/debt_ceiling_report_final_01292015.pdf.
I am quoted in Bloomberg’s “Inside the Fed’s `D-Day’ War Games for Breach of U.S. Debt Limit” – http://www.bloomberg.com/news/articles/2016-02-01/inside-the-fed-s-d-day-war-games-for-breach-of-u-s-debt-limit.