Hound Dog, it essentially means that a debt 'ceiling' cannot be established.
To be honest, I do not have a full understanding of what is happening or what is proposed - kids are home for the summer so the news is rarely on now and I just don't have the inclination to research it since I more pressing things to worry about. However, simply not sending out checks that are rightfully due is not an answer, and will not limit debt. Think about your own finances. If you don't pay a CC what happens? Does it go away? NO. You have that extra cash for other things that month, but that debt is still there and grows even bigger due to fees and late charges. Same with the national debt because if they don't send out SS payments, or don't pay the military, they still legally OWE that money, so the debt builds, and ceiling or no, it is valid US debt that has to be paid.
I'm certain there are details I'm not aware of, but like ppl were saying it sounds like a lot of 'playing chicken' and political posturing, and WAY too many alarmist statements being made just to sway public fears an emotions to one side or the other. I truly feel for the President. in my opinion he's doing his best to play the logical parent role, trying to referee two illogical difficult children (the parties). It reminds me of our last governor who ended up renouncing his party's affiliation because he started voting "logically" and not solely along party lines. I was not always happy with his decisions, but did see the logic in them.