Will there be a default?

I guess that would depend on whether President Obama and the Federal Reserve decide that we should have one. Tax money will continue to come in ($220 Billion or so) and can be prioritized to pay the debt first and avoid a default. That is about $20 Billion per month plus principal on whatever notes and bills are maturing at that time.
The 60% of the debt that is held by entities outside the federal government would certainly have to be paid on first or we would be in default. I would think that the payments on the money borrowed from other government accounts like Social Security and that held by the Federal Reserve could be delayed until a deal can be reached. But that will require compromise by the House, Senate and President Obama. Yes, he will have to play too.
But if the president wants to default, we can.

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