He’s confusing the public, and he may be confused himself, about what the 14th Amendment really says and how it affects the debt ceiling. Section 4 of the Amendment says that the “validity of the public debt of the United States, authorized by law . . . shall not be questioned.”

This means the Treasury cannot repudiate debt held by the public as issued in Treasury bonds and notes. In practical terms this means Treasury Secretary Janet Yellen must prioritize debt repayment once statutory federal outlays exceed federal revenue. In other words, she and Mr. Biden can’t willfully default even for a time without violating the 14th Amendment. …

All of which means that the melodrama over U.S. default is overwrought. That’s because even if federal spending begins to exceed federal tax revenue sometime in June, as Secretary Yellen says it will, Treasury can prioritize paying interest on Treasury bonds or retiring debt principal when it comes due.

Treasury has more than enough cash to do this.

[Surprise, surprise … Biden’s demagoguing on the debt ceiling. The renewed negotiations today suggest that even Biden realizes that this is a losing hand. — Ed]