That's fairly accurate regarding the first-order consequences of hitting the debt limit. Second-order consequences come from: -An abrupt drop in consumer spend

That's fairly accurate regarding the first-order consequences of hitting the debt limit. Second-order consequences come from: -An abrupt drop in consumer spending due to paychecks lost in that 43% cut. -Moody's and S&P have committed to downgrading the USA's debt from AAA if the debt ceiling is not raised. Remember the liquidity crisis the financial sector suffered in 2008 due to a sudden shortage of AAA bonds? There are a lot of Treasuries out there. I'll leave third-order consequences up to the post-apocalyptic novelists in the audience.