If Congress doesn't raise debt ceiling — the options, from ugly to unthinkable

A coming showdown over the federal debt ceiling has raised interest in options for avoiding a default on the debt if Congress fails to raise the debt ceiling, including the possibility of far-out options, such as the Treasury picking and choosing which debts to pay or even minting a trillion-dollar platinum coin.

Here is the current state of play. Once the Treasury hits the debt ceiling, it may no longer issue new debt to pay bills as they come due. Congress is the only body that has authority over raising the borrowing limit,...