August 2nd

Faye

Faye

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Dear Forum,

How will happen if the U.S. government defaults on their debt come August 2nd because the Republicans don't want to let Obama raise the debt ceiling? More importantly, how will it affect my ability to get a job?
 
They'll probably halt some government paychecks first - aka, the military. But from there on it's anyone's guess. Not even sure what that would mean for the world economy, actually; will some countries come to collect?
 
Dragon said:
Dear Forum,

How will happen if the U.S. government defaults on their debt come August 2nd because the Republicans don't want to let Obama raise the debt ceiling? More importantly, how will it affect my ability to get a job?
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If the U.S. defaults, interest rates will rise. This is because loaning money to the U.S. will be a riskier thing, and will only be undertaken at higher cost.

When interest rates rise, people and businesses are naturally reluctant to borrow money. This means that companies and businesses will be less likely to expand, but will instead seek to cut costs. The easiest way to cut costs is to lay off staff.

So, if the U.S. defaults, even for a week, interest rates and employment will be certain to suffer, because the U.S. economy will be seen as a higher risk investment to lend money to. Just remember, than even a week of delay in payment of debt will cost investors hundreds of millions of dollars.
 
If the US Gov defaults on its debt it will show its weakness and make room for another, leaner, more efficient, better than ever government to take its place. It is the laws of the market place in action. Rupert Murdoch already has a secret competitor government just waiting to roll out onto the US market. Obama and the GOP will be yesterdays news in the bright shiny future.

Wendy's is hiring.
 
arbygil said:
They'll probably halt some government paychecks first - aka, the military. But from there on it's anyone's guess. Not even sure what that would mean for the world economy, actually; will some countries come to collect?
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Is there anything left to collect?
 
And apparently we won't be paying out Social Security checks to those people who worked their whole lives and put money into the system.
 
There is currently talk of passing a law whereby the Pres could raise the debt ceiling by himself.

this is a terrible Idea, I hate to say it but I think the cataclysm of a default would be preferable to having the congress cede its purse string power due to its inability to deal with reality.
 
StudebakerHawk said:
There is currently talk of passing a law whereby the Pres could raise the debt ceiling by himself.

this is a terrible Idea, I hate to say it but I think the cataclysm of a default would be preferable to having the congress cede its purse string power due to its inability to deal with reality.
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It's ridiculous that the U.S. should be wanting to pass laws so as to be able to borrow money, in order to pay debt repayments.

That's like using a high-interest credit card to make a mortgage repayment.



The U.S. is in very, very deep trouble.
 
Flavus Aquila said:
It's ridiculous that the U.S. should be wanting to pass laws so as to be able to borrow money, in order to pay debt repayments.

That's like using a high-interest credit card to make a mortgage repayment.



The U.S. is in very, very deep trouble.
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Increased globalization pretty much means that it will have an impact around the world in some respects. One of the most difficult things about modern markets is trying to understand how globalization is affecting individual markets. It is one of the least understands economic influences IMO.
 
I'll put my money on the idea that Obama is bluffing. He won't be the president to not send out SSI checks, it would kill him politically and possibly physically.
 
Barnabas said:
I'll put my money on the idea that Obama is bluffing. He won't be the president to not send out SSI checks, it would kill him politically and possibly physically.
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I am sure if it happens it will include a round of finger-pointing...it's their fault, no it's their fault--people will stay on whatever side they are already on politically...unless it drags on too long..
 
Yeah, but he has to know that historically blame and glory always falls on the acting President.
 
I am an alarmist.
There will probably be riots and revolts if people stop receiving their SSI and other public aid.
When people are made desperate to live, they do desperate things.
Violent crimes will go up. People will lose good jobs and eat dog food and sell their children and jump out of bank windows.
The rich will just take their money over seas, anyways. They'll all be fine, of course.
/Chicken Little rant

Actually, I am afraid of how bad things will get if this happens.
If it doesn't happen, we're still screwed.. but at least it buys a smidge of time to keep us in a delusional lull.
America is about to collapse in on itself like a dying star.
I'm taking my money and going to illegally emigrate to Mexico.
 
for the record, it is the US House of Representatives responsibility to pass a bill to raise the debt ceiling. If they decide that they won't do it unless the President and the US Senate agree to......whatever.... that is within their purview. If they say they will not put a bill to vote unless Obama shoots his dog, that is their business. But if they do not pass a bill, for what ever reason, the onus is on them.
 
Your right, it is congress responsibility, but historically blame falls on the president.
 
because the last time congress failed to pass the debt ceiling was when (fill in the blank)_____________was President. (I am thinkin, Lincoln)
 
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