You are right, we will not default on debt instantly, But, the repercussions of not raising the ceiling will have global effects. All because a few Tea Bag cowboys want to have a shoot out on the absolute worst issue they could have chosen, at the absolute worst time. Fucktards.
On Mon, Jul 25, 2011 at 10:31 PM, Judah McAuley <ju...@wiredotter.com> wrote: > > I don't think the situation is entirely cut and dried. For instance, > if we don't raise the debt ceiling, that doesn't mean that we > instantly go into default on our debt. We still have a sizable revenue > stream as a nation and could take money from discretionary spending > projects and use it to pay debt obligations, for instance. But that > would mean sizable cuts in such spending and would wreak havoc with > our domestic programs. Furthermore, even if we did meet our debt > payments, S&P would probably still downgrade our rating, which would > increase our costs across the board and have gnarly negative > repercussions. > > There's a really interesting story by Ezra Klein about S&P and our > country's credit rating here: > http://www.washingtonpost.com/blogs/ezra-klein/post/how-congress-put-our-credit-rating-at-risk/2011/07/11/gIQA3WxhTI_blog.html > > The gist of it is this: at the beginning of the year, S&P was of the > opinion that we definitely needed to balance out our spending and > income and reduce long term deficits but there was not a big immediate > concern. But as the year went on, their concern grew. Was it because > our financial picture changed? Nope. It is because the political > picture changed and all of a sudden, you've got a situation where the > political lines are being drawn in the sand and people in Washington > are saying if a deal doesn't get done *right now* they won't ever > agree to anything. > > Basically, S&P is looking at the political situation and influential > people in the Tea Party taking over the budget discussion on the > Republican side of the aisle and, as a result, pushing an aggressive > timeline that says "now or never" which makes S&P very worried about > the "never" side of things. > > So it's gone from "something that needs to be looked at and dealt with > by adults, we are mildly optimistic it will happen" to "holy shit, > these kids are driving the bus off a fucking cliff and we need to > figure it out right the fuck now". And that's the story of our credit > rating. And it's all political. > > Judah > > On Mon, Jul 25, 2011 at 6:38 PM, Scott Stroz <boyz...@gmail.com> wrote: >> >> Not if you listen to the moronic Tea Baggers. According to them, >> nothing will happen..at all...its all a bluff by Obama. >> >> These fucktards think they know better than every other expert I have >> heard, yet, they continue to play chicken with the global economy. >> Assholes. >> >> On Mon, Jul 25, 2011 at 8:13 PM, Grussgott <grussg...@gmail.com> wrote: >>> >>> 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:340954 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
