On the other hand, the US takes a lot more in in revenue than it does in interest payments, as this chart demonstrates.

So it’s obvious that the Treasury can make good on its bond payments.

So then it’s a matter of law. Can Geithner prioritize interest payments over domestic spending.

There’s currently a law being proposed by the GOP that would mandate the Treasury pay interest payments first, but what if the didn’t get passed?

It turns out, Geithner doesn’t need a new law to prioritize interest payments.