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Wall St. Is Counting on a Debt Limit Trick That Could Entail Trouble


“This so-called prioritization scheme makes Republicans’ priorities pretty clear — crystal clear, if I may add,” Karine Jean-Pierre, the White House press secretary, said on Jan. 17. “They want to put wealthy bondholders over ordinary Americans who want safe food, safe skies, safe communities and secure borders.”Attempting to prioritize payments would carry severe political, practical and legal risks. Paying back bondholders might be critical to protecting the bedrock of financial markets, but it would put the administration in the position of looking like it was supporting wealthy investors over retirees, disability beneficiaries and military personnel.“The idea that somehow you’re going to prioritize foreign creditors and Wall Street over all the rest of the country …

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