My understanding is that basically failing to raise the debt ceiling is the government saying "we are not planning on paying back all the money we have budgeted.".
So, either the government stops paying those bills they budgeted, or they are going to have to borrow that money as UNSECURED debt. (picture the Minn Government shutdown, or Cali sending all those people home with no notice, or Cali not sending tax refunds to people they owed money to, but instead sent IOUs but no money). Those unsecured loans are going to be expensive, like break-your-kneecap-if-you-are-late expensive. And regular lenders on the money that IS authorized (the money under the current debt ceiling) are going to also start charging a LOT more to lend that money, since we have said basically we cannot be trusted any more. And since those loans are going to be way more expensive, our BUYING power per dollar is going to go way down. And our currency, compared to others is going to drop dramatically, so all imports will be more expensive, and all exports will be worth less. In the end, it will probably mean a HUGE reduction in government jobs (like tens of thousands of layoffs or furlows), which will tank the economy further, a HUGE reduction in government services, and a HUGE increase in the debt, and a decapitation of our economy, probably into a depression. It is going to be very expensive for you and me, wallet-wise. Or so I understand it, being completely economically and politically and religiously challenged. (I just dont understand ideologues) On Mon, Jul 25, 2011 at 1:26 PM, Scott Stewart <webmas...@sstwebworks.com> wrote: > > So with all the talk about the US debt ceiling... has me wondering.. > what would happen if we did default? > > Is it the fall of Western Civilization and we all go back to living in > animal skin tents, hunting and gathering to get by > ..or > Is it a reset..meaning, kind of like going bankrupt, our debts gone > and we start over albeit with a signifcantly diminished credit score? > > note: I am not an economist, so please.. plain english :) > > -- > -- > Scott Stewart > Adobe Certified Instructor, ColdFusion 8 & 9 > Adobe Certified Expert, ColdFusion 8 & 9 > > Blog: http://www.sstwebworks.com > Email: webmas...@sstwebworks.com > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:340944 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
