U.S. default could deliver swift hit to consumers

[alp227]

Source: The Washington Post

Life might get more difficult for many Americans if Congress doesn’t reach a deal to raise the government’s borrowing limit.

Without the ability to borrow more, the Treasury has said it would not have enough cash on hand to pay all its bills, which include payments due on the government’s outstanding debt. Experts disagree on when exactly such a default would occur or how long it would last. But the impact could be wide-reaching.

“In almost every area where people have pocketbook concerns — jobs, interest rates, credit, availability of government payments, benefits — all those things would be affected in relatively short order,” Ben S. Bernanke, chairman of the Federal Reserve, warned Congress earlier this month.

Read more: http://www.washingtonpost.com/business/economy/us-default-could-deliver-swift-hit-to-consumers/2011/07/30/gIQACkGvjI_story.html

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Among consequences: "It might become more difficult to get a job. With less money coursing through the economy, consumers’ economic activity could slow."

[safeinOhio]

1. Money to states

might be one of the 1st things to go. Within a month you'd see police and other first responders laid off.

[Blandocyte]

2. Hopefully we'd have religion-based police to step in if local police

were not funded anymore.

:sarcasm:

[iamjoy]

3. Precisely What Republicans Want

This would be exactly what Republicans want.

It would worsen the economy. Even if more folks blame them for this failure to raise the debt ceiling (than those who blame President Obama), the Democrats would still get the blame for the worsened economy. After all, look how fast after Obama was inaugurated that people started blaming him for the Bush depression.

It would give them another opportunity to point to how government doesn't work. Thus, another excuse to cut taxes and do away with safety net programs to supposedly help the economy, but really to help put more money into the hands of the elite.

From their perspective, mission accomplished.

[glinda]

13. People that loose jobs would be replaced by nutjobs.

[tigereye]

21. yes, but their corporate overlords would have been highly

displeased (not the Kochs, all the other ones)

[L0oniX]

4. F*cking economic terrorists!

[aquart]

5. Uh huh.I still want to hang Bernanke. Legally. Publicly.

On Wall Street.

[UpInArms]

6. +1

[Po_d Mainiac]

10. And

Greenscum
Jamie and the JP Morgue
Moynihan and the Bank of Assholes
Blankfein's Goldman Sucks
Caruso and his credit default shit
Fuld the Lyarman
Turbo T
and it's a long list

[roomfullofmirrors]

7. "cough up a couple a trillion or the world will end". Seems like we have heard that song before.

[SammyWinstonJack]

8. We have and it worked out so well.

But not for us and this won't either.

[No Elephants]

14. Bingo.

[chrisa]

9. Hyper inflation would make things we take for granted now impossible to get.

[aquart]

11. Like what?

[closeupready]

12. I don't care. If Social Security and Medicare are cut, that is worse. Hold tight.

It could get bumpy.

[AndyTiedye]

17. Default Would Destroy SS and Medicare. Where Do You Think Their Money Is Invested?

U.S. Government Treasury bills, that's where.

[No Elephants]

15. If you think this is bad, wait till Y2K gets here.

[Stumbler]

16. Lol, we were scared our computers & toasters would hurt us back then

Little did we know what we really had in store...

[Politicalboi]

18. They already hit my mom's SSI

I'm curious if others have had the same thing happen to them. She usually gets her payment on the 3rd, but she got it on the 27th of July, and it was only for $96.00 when she usually gets $1300. I haven't told her yet. She's 84 and this is going to floor her if this is what we can expect. Is this a wake up call to let people see reality if the Pukes get their cry baby way. I hope that is all it is.

[classof56]

19. Oh my gosh! This is stunning in its implication!

My spouse and I are on SS, supplemented by small retirement pensions from our years in public service, definitely not enough to live on. If we don't get our SS this week, we will be in serious trouble. Have long since had our investments pretty well wiped out by the Bush financial fiascos. I hope your Mom's remaining SS shows up soon, or at least some sort of explanation as to what's going on. Suddenly, I feel sick. Not sure if I've mentioned it lately here on DU, but my hatred for repukes knows no bounds. Damn their eye, each and every one of them!

Best wishes to you and your Mom!

Tired Old Cynic

[tigereye]

20. it would have been a crazy cascade... ironic given that the

TP crowd are supposedly concerned with the economic health of the country at large... :eyes: