Yup. Very expensive and probably a global recession with a US depression. Probably would meltdown Europe too. Very very bad. Most of us would lose our jobs to start and then it'd get worse from there.
Basically it'd be a self-inflicted shot to the head in that the country might survive but it'd be pretty disfigured. Sent from my iPad On Jul 25, 2011, at 12:43 PM, Jerry Milo Johnson <jmi...@gmail.com> wrote: > > 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:340951 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
