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Originally posted by guessing
Higher car loan rates, higher credit card rates, higher student loan and higher small business loans and consumer mortgages. That is the result of a credit downgrade for the USA
The cost for the US to fund its capital will be higher and every single person on the planet is affected.
If capital funding costs more, then the follow on effect means everything costs more.
Small business lay off workers, who in turn can not afford to pay their higher mortgage and in turn are evicted. With no job and no home and no money to buy food, bread lines and soup kitchens feed the hungry and the homeless. Even those with a home use the soup kitchen as they can not stretch the dollar far enough to buy food.
The follow on effect is an economy that has no available money for spending and as such a chain reaction occurs as more people lose work and less money goes back into the economy.
The final result is a depression unlike anything ever experienced.
There is no way to prevent it. They have tried, they have failed.
Who is profiting from this?
Unemployment rates goes from 24 million to 50 million people?
this is not a fearmongering thread , this is just some thoughts.
If credit costs are higher everything is higher!
US debt clock
edit on 6-8-2011 by guessing because: added link
yea no TAX income= less spending= Less needy get help= means, less buying= less jobs = biz that go belly up= more unemployed, = less, means no TAX income to US, I would say that is a depression.
3. Needless to say, increasing costs for consumers and businesses tends to slow their economic activity. Some estimates put a downgrade like this as likely to shave 1 percent off GDP. This slowing certainly increases the risks that the U.S. will have a second dip into recession. It also means less tax revenue, so the potential for additional debt increases.