An even more sluggish economy with fewer jobs; higher interest rates for consumers; declining values for retirement plans and eroding credit ratings for municipalities highly dependant on federal largesse. Those are some of the warnings of what a "default" could do.
The August 2 date is a little arbitrary as some say the crunch day is perhaps as late as the tenth, but the issues are the same. "Default" may not be exactly the right word, as the government still has revenue, but just not enough to cover everything. Debt service and entitlements could be funded but sooner or later large aspects of the federal system would grind to a halt and the ripple effects are likely hard to guage, other than the fact its politically unacceptable.
So everybody (almost) is in favor of more borrowing, as its the path of least resistance, as in kicking the can as opposed to bending over to pick it up.
U.S. default could deliver swift hit to consumers - The Washington Post
5 comments:
If what you say is true...it sounds like the senate should have passed the house's bill on Friday.
Borrow and spend, spend and borrow. Have fun a little longer.
Yes, The Republican trickle down economics. Washington has a pissing tornament and America gets wet and stinky.
What is frustrating is listening to the left wings kooks and the MSM talking about the patriot Tea Party members as if those members are extremists.
They keep characterizing that we need a middle ground or a compromise from the Tea Party.
What the hell is a middle ground to address borrowing 40 cents of every dollar we spend? What would a middle ground be? Borrowing 20 cents of every dollar we spend? That is still a ridiculous deficit. Bububu but Bush...is not the reference point.
Your side comment on what the "spending cuts" really mean sort of puts things in perspective, doesn't it? Politics at it's finest one more time. When the debt ceiling thing is all done, all the congress-critters will puff up and thump their chests for the cameras and tell us what a great thing they did. When in reality it's all BS, smoke and mirrors, and they didn't really do a d@^& thing. Anymore than Newt and Ole Slick's balanced budgets were real. They borrowed money on short term notes to make the budget look balanced for a few years. Just long enough for them to collect their cushy retirements and get out of Dodge before it came back to bite em on the butt.
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