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Patrick J. Toomey
Lew won't commit to paying bondholders if debt limit is breached
Lew won't commit to paying bondholders if debt limit is breached

WASHINGTON -- Treasury Secretary Jacob J. Lew on Thursday would not commit to paying interest on government bonds if the debt limit is not raised, saying it would be extremely difficult to choose which bills to pay if there is not enough money. On top of that, he said prioritizing payments on Treasury securities would be "default by another name." But some Republicans have argued that paying interest on government bonds would avoid a technical default and minimize the impact of a debt limit breach. They have pointed to a Moody's Investor Services report this week that said the credit rating company believed the Treasury would use incoming revenue to continue to pay...

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