“Beyond a certain point … the United States would be forced into a position of defaulting on its debt. And the implications of that on our financial system, our fiscal policy and our economy would be catastrophic,” he told the National Press Club.

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Let’s sum it up: As long as the government continues to pay interest on the debt, then it technically is not in default. With tax revenues expected to be $2.2 trillion, interest payments amount to roughly $300 billion—this would still leave $1.9 trillion in revenues to pay for the government’s most important priorities. For instance, lawmakers could decide to honor the promises made to people benefiting from entitlement spending, such as Social Security, Medicare, and Medicaid. In that case, even after paying for all of the entitlement spending, the Treasury would still have $300 billion left.

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“One point on my discussion list was a $4.5 billion proposal that would affect payments made to our veterans,” Bachmann said in a statement posted to her website. “That discussion point has received a lot of attention and I have decided to remove it from consideration. The problem of government spending must be solved, but not on the backs of our nation’s war heroes.”

Bachmann reiterated in her statement her opposition to raising the nation’s $14.3 trillion debt ceiling, a position that has her at odds with House GOP leaders.

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“The House Republicans should be very tough on spending, they should pass a continuing resolution which cuts spending substantially,” Gingrich said. “The House Republicans should pass a debt ceiling that has very significant budget reforms and very significant cuts in spending.”

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