I'm sitting up straight now: Mother Jones reveals "16 ways Default will Totally Screw Americans"
Economists say failure to raise the debt limit could lead to a financial apocalypse. Here's what it might look like.By Dana Liebelson | Thu Oct. 10, 2013 7:50 AM PDT
Social Title:
16 ways default will totally screw Americans
Perhaps you've heard that if Congress fails to raise the debt ceiling by October 17 the United States will face an unprecedented financial default. The way some Republicans talk about the consequences of passing that threshold [1], you might think that hitting that limit might not be all that bad (Florida's Ted Yoho, in fact, thinks it would be beneficial). But sober-minded economists are describing the ramifications of a default with terms usually reserved Roland Emmerich flicks—like "apocalypse. [2]" The full economic fallout of defaulting are unknown. "It's a little like asking how many people will be killed if there's another terrorist attack," says Isabel Sawhill, a budget expert at the Brookings Institution. But we do know that as early as October 22 [3] the US government will run out of money to pay its bills and federal spending will have to be cut by about 32 percent, according to an estimate by the Bipartisan Policy Center [3] (BPC). That's when Americans of all stripes would start feeling the pain in many different ways. Here are 16 of them:
1. Social Security payments will be delayed, possibly cut. According to President Obama, in the event of a default the US government will have no choice but to delay Social Security checks [4]. The government owes $12 billion in Social Security payments on October 23 and an additional $25 billion on November 1. At some point between October 22 and November 1, the BPC predicts that the US government will have exhausted its borrowing power and will either have to start severely delaying its bills or sort through the millions [5] of different payments it makes each month—on everything from national parks to the FBI—to figure out which ones to stop paying. That's when Social Security could see sustained cuts.
2. Federal employees will be screwed…even more. Furloughed federal employees haven't been paid since the government shutdown began on October 1. Congress is unlikely to end the shutdown without raising the debt limit, meaning furloughed staffers would be unlikely to receive paychecks anytime soon.
3. Pay and benefits for military service members and veterans will be delayed, possibly cut. The US government owes $12 billion [5] in pay to active and retired military service members on November 1. Those payments will be delayed if the government runs out of money before then, and potentially cut, depending on which bills the US decides to pay.
4. Medicare and Medicaid checks will be delayed, possibly cut. The US government owes $2 billion [5] in Medicaid payments on October 30 and $18 billion in Medicare payments on November 1. Same deal: If the government runs out of cash before then, payments will be delayed, or put on the chopping block with everything else.
For the other dozen go to
Source URL: http://www.motherjones.com/politics/2013/10/16-ways-not-raising-debt-ceiling-will-screw-americans
= new reply since forum marked as read
Some are some are not! Many paychecks will only come as back pay. In the mean time they have to eat, pay bills and take care of daily cost of living for there families.
Thats why sites like this have popped up https://www.unfurlough.us/
Then there are those that in between the cracks, say people who work for private contractors that will not receive pay for days lost, business that depends on nearby federal facilities for their lively hoods.
http://www.democraticunderground.com/10023834395
Less than ten days away, the scenario described here is what the GOP wants:
Debt Ceiling: 'Chaotic' choices on 100 million payments
By Jeanne Sahadi - January 7, 2013
If Congress doesn't raise the debt ceiling soon, the Treasury Department will be forced to make drastic, no-win decisions on how to honor tens of millions of legally owed payments every month...
Prioritizing interest payments means Treasury must choose from more than 100 million monthly payments and would not be able to pay 40% of the dollars owed...
Much more at link:
http://money.cnn.com/2013/01/07/news/economy/debt-ceiling/index.html
Those expecting veteran benefits will lose those in November through shutdown or with default:
5 million will lose veterans' benefits next month if shutdown stretches to November
http://www.democraticunderground.com/?com=view_post&forum=1014&pid=616482
Rand Paul says default can be 'framed as a reasonable idea' and Tom Coburn wants to default to face a 'managed catastrophe.'
http://www.democraticunderground.com/?com=view_post&forum=1002&pid=3820816
To which I said:
A 'managed catastrophe' by these gangsters? We're officially in hell!
Why the people of the USA aren't in the offices of these gangsters protesting right now, proves the power of media.
They will blame Obama, the poor, the disabled, the elderly and any 'others,' instead of the GOP.
The long term chaos will benefit the GOP in 2014. as people forced to move, translates into them being unable to vote.
On the bright side, at that point, they will all be able to qualify for government assistance living where and how they do not want.
But anyone who has paid much attention to politics since the Tea Party gained power in 2010, knows that FOAD is their answer to those who need assistance.
All of this coming from a man-made disaster that does not have to happen.
http://upload.democraticunderground.com/10023822515
Just more information, of what the Treasure is trying to figure out in the face of this insanity. They've been doing this all year while the GOP has played this game, causing the pain, even after the Sequester. The Teabaggers are hell bent on their dystopia.
They want to do a Shock and Awe, and it will be unexpected to many. The media has kept this out of the public eye, not putting blame where it belongs for this Koch brothers disaster now staring so many of us in the face.
I posted some positive solutions, not sure if it's too late. The USA will never again entertain the progressive social issues we thought important as it is divided up into fiefdoms.
Here is another, if you are interested in reading this:
Nearing the Eve of Destruction, will this be Obama's Winning Hand?
http://www.democraticunderground.com/110218172
Thanks, Mira, for bringing this Mother Jones piece that lays it out so clearly.
