Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

What happens if they don't raise the debt ceiling?

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » General Discussion Donate to DU
 
LiberalAndProud Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-07-11 11:10 PM
Original message
What happens if they don't raise the debt ceiling?
What if there is no agreement? What happens to seniors and disabled who depend on Social Security checks today? What happens to our economy? To the global economy?

We believe the Rs are bluffing. Are they really?

http://www.salon.com/technology/how_the_world_works/201...
Printer Friendly | Permalink |  | Top
nadinbrzezinski Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-07-11 11:12 PM
Response to Original message
1. Won't be pretty... I lived through this in Mexico
and trust me... that was a walk in the park compared to the US... will definitely NOT be pretty.
Printer Friendly | Permalink |  | Top
 
Angry Dragon Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-07-11 11:15 PM
Response to Original message
2. We just slide quickly down the hole we have been sliding
into for the last ten years .............

And you might have to learn a new foreign language
Printer Friendly | Permalink |  | Top
 
napi21 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-07-11 11:17 PM
Response to Original message
3. I believe they're bluffing too, and I also believe the Pubs will
at some point finally come to some agreement and vote to raise the debt ceiling as Congress SHOULD have done well over a month ago. Noone seems to know for sure what would happen to the World economy. Everyone, stock brokers included, that I've soken to about this have all said they don't know because it's never happened before, but everyone believes the result would be disaterous. Interest rates would skyrocket, the current debt would explode because it would cost us so much more to borrow money, and neither of those things reflect the impact on those whose life depends on getting their checks.
Printer Friendly | Permalink |  | Top
 
supraTruth Donating Member (352 posts) Send PM | Profile | Ignore Thu Jul-07-11 11:19 PM
Response to Original message
4. Tell the President to tell boehner&cantor that WILL instruct his Treasury Secretary to CUT
CONgressional paychecks FIRST if the Aug. DEADline is missed!

HIT THEM in the ONLY place THEY understand, their POCKETBOOKS!

GAME OVER!

http://supratruth.newsvine.com/
Printer Friendly | Permalink |  | Top
 
JHB Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-08-11 05:59 AM
Response to Reply #4
13. Not them. You can count on the congressmen to be able to get "loans"...
...to keep them afloat.

Draw up a list of what companies, projects, and programs that will have their payment deferred until the the issue is resolved, and sort it by state and congressional district. And inform the people who will be getting a raincheck instead of a paycheck why this has become necessary, and that their congressperson has the power to do something about it.

If you want to break up the congressional Republican lockstep voting phalanx, youhave to put pressure on them as individuals.


It might also be worth pointing this (Geithner and Obabma effectively deciding who gets paid on time) out to the teabaggers:

"You've spent the last two years calling Obama a socialist, corrupt, every name in the book and more. And now you want to hand him fiat power over the budget?"

Printer Friendly | Permalink |  | Top
 
RZM Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-07-11 11:19 PM
Response to Original message
5. I find it difficult to believe they would let the deadline expire without raising the debt limit
These are veteran politicians who know they would have to own whatever happened after and I don't see them taking that risk. Of course, maybe their pollsters/researchers are telling them that Obama will receive the lion's share of the blame . . . but I doubt it. I think they are playing chicken and are praying that Obama backs down first.
Printer Friendly | Permalink |  | Top
 
girl gone mad Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-07-11 11:22 PM
Response to Original message
6. Probably not that much, to be honest.
A sovereign government that issues debt in its own fiat currency can only default by choice. My guess is the bond vigilantes will consider this event merely a temporary political default, not a serious or consequential technical default. As such, the risk premium will be minimal.
Printer Friendly | Permalink |  | Top
 
RZM Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-07-11 11:27 PM
Response to Reply #6
8. That's an interesting argument
Hadn't thought about it like that, but it makes sense.
Printer Friendly | Permalink |  | Top
 
Fool Count Donating Member (878 posts) Send PM | Profile | Ignore Fri Jul-08-11 04:36 AM
Response to Reply #6
12. That would probably be the case were it not for all the
derivatives contracts triggered by technical default on US Government debt. There is no way to avoid the declaration of default, if a coupon payment on
any US Treasury bond is missed due to failure to increase the debt ceiling. What kind of avalanche that would cause, I wouldn't even dare to guess,
but it wouldn't be good for the world economy.
Printer Friendly | Permalink |  | Top
 
Bandit Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-08-11 07:59 AM
Response to Reply #6
14. Would you call an interest rate increase of 1% minimal?
Because that is the most likely outcome. One percent increase in interest rates would cause our National Debt to rise about a trillion dollars in a ten year period. Not exactly minimal..
Printer Friendly | Permalink |  | Top
 
nevergiveup Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-07-11 11:23 PM
Response to Original message
7. There is a sizable group of Rs who are not bluffing.
Obama is in a position where he must someway negotiate with a bunch of terrorists who control the House of Representatives. No matter how this goes down it is going to suck.
Printer Friendly | Permalink |  | Top
 
RaleighNCDUer Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-08-11 12:01 AM
Response to Reply #7
9. There's your solution. People who take hostages are terrorists.
We send terrorists to Gitmo.

With the terrorists gone, we raise the debt limit.

Game over.
Printer Friendly | Permalink |  | Top
 
whosinpower Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-08-11 12:44 AM
Response to Original message
10. It is understandable that you would be concerned
with seniors and those on SS, etc.

BUT - beleive me when I tell you - Wall street will not let this occur. Not for the the seniors or those on SS - but with all its assets and well - US debt, treasuries, etc.

It will not happen - and even if it does happen, I do not believe that the sky would fall. This would be considered a political issue - not a structural one. That is that the faith of the US government to pay its debts would continue even if its politicians played ideological games.

And the GOP will have shot their nuke - and it will fizzle on them - and the weapon will then be useless.
Printer Friendly | Permalink |  | Top
 
Posteritatis Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-08-11 04:18 AM
Response to Original message
11. The earth will plunge directly into the sun. (nt)
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Fri Aug 29th 2014, 05:35 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » General Discussion Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC