If there is a US Dept Default what are the consequences to the US and the World ?

rickymouse

khimbar
reply to post by redshoes

 

And a bug out bag will stop that how exactly?

I need a couple of semi trailers to bug out. I'll stay put and make coffee and cookies. I wonder how much coffee FEMA has in their warehouses. If they don't have any, we will all be zombies.

One of my preps is a coffee mountain. Seriously. I can't shop without getting more bags of it. Not even all for barter, all for me.

What I am hearing, is it will be like 2007, all over again, with a twist... Yet in the scheme, of things this looks like fireside theater to me.. I see a late night session Wednesday night, in the house and some breaktrhu in passing the budget and raising the debt, ceiling, and it will be some arrangement that helps the republicans save face.. If it does not happen, then the markets will crash the dow, the nasdaq, etc. Ahem, Its simple, if the US government defaults, the flow of money stops, they cannot pay their employee's programs, etc. All Government programs, will stop....

Since allot of people are employed by the government, their will be a big hit to the economy.. Not to mention The US government will be broke, and outta credit...

Ahem, not to hard to figure out what will happen...

But it wont...

reply to post by Bicent76


I hope you're right about it not happening. Then, I never thought sequester would happen. When it did, I never thought it would comfortably remain standing and without ongoing challenge as the 'new status quo'. Yet...it has.

I never thought they'd shutdown this time. It's been THE front burner issue at least 3 times now over the past 18 months. Everyone had their talks, negotiations and 'feel each other out' time on the specific issues long before this, and unlike most previous shutdowns. So I can only conclude we shut down by the willing agreement of those in Congress and the White House. Nothing else makes sense if we are dealing with adults and not a true child's level of reasoning (Which I do NOT believe, however much fun it is to make fun of them).

Will the morning of the 18th mean our nation is busted? Yes.. and No... Is a man living in a nice middle class home, full of stuff and with cars in the driveway REALLY bankrupt when filing? Nope... Not really. Same here... We aren't really broke, and everyone knows it. That doesn't matter.....because reactions and policies don't deal with reality, they deal with the world of laws on paper and spreadsheets to dictate them.

If default doesn't make a major move to ruining our nation, long term, it won't be because other nations helped prevent it.....as default almost obligates them to take steps next that hurt us very badly. If they don't, it will be because they've deliberately chosen not to.

How are you feeling about Goodwill from the world, on not pushing everything about default to the max against us? ...err.. yeah... huh? I feel a shiver of cold, suddenly.

reply to post by deviant300


This shows signs of being a Modernised version of the pre-banned Neutron Bomb does it not ?????

Wrabbit2000
reply to post by Bicent76

 

I hope you're right about it not happening. Then, I never thought sequester would happen. When it did, I never thought it would comfortably remain standing and without ongoing challenge as the 'new status quo'. Yet...it has.

I never thought they'd shutdown this time. It's been THE front burner issue at least 3 times now over the past 18 months. Everyone had their talks, negotiations and 'feel each other out' time on the specific issues long before this, and unlike most previous shutdowns. So I can only conclude we shut down by the willing agreement of those in Congress and the White House. Nothing else makes sense if we are dealing with adults and not a true child's level of reasoning (Which I do NOT believe, however much fun it is to make fun of them).

Will the morning of the 18th mean our nation is busted? Yes.. and No... Is a man living in a nice middle class home, full of stuff and with cars in the driveway REALLY bankrupt when filing? Nope... Not really. Same here... We aren't really broke, and everyone knows it. That doesn't matter.....because reactions and policies don't deal with reality, they deal with the world of laws on paper and spreadsheets to dictate them.

If default doesn't make a major move to ruining our nation, long term, it won't be because other nations helped prevent it.....as default almost obligates them to take steps next that hurt us very badly. If they don't, it will be because they've deliberately chosen not to.

How are you feeling about Goodwill from the world, on not pushing everything about default to the max against us? ...err.. yeah... huh? I feel a shiver of cold, suddenly.

Well know one knows the future, I am trying to be optimistic, on ats lotsa people are pesimistic, and can see the future clearly... The debt, ceiling is a huge problem, it has been for a long time, the Republicans are pissed and the democrats are pissed, and neither one of these parties want to take responsability for anything, and listening to them wallow, and argue with one another is sickening. They are idiots, out of touch to the people of this Country, they live behind gates in gated communities, and do not mingle with the people. So how the hell can they help us? If they cannot relate... Here is the thing, if we default, those idiots will not have a job, and will get scared of the people, so I see it in that sense, they will make something work, its a stunt, between the republicans, and democrats, what they are doing right now, has 0, to do with us... It has to do with money...

Another thing I see, is we are going to default one way or another, Which is odd, because federal taxes on gas at the pump alone brings in billions in itself, its just poor federal budgeting, corruption, our tax dollars paying for personal extravaganza's between politicians, bloated defense contracts, meaningless wars, and many many failed policies...

Another thing that I notice... We are not even close to the age of China, and our Economy right now, and Government right now is on the brink... China's Economy has been around for hundreds of years, they managed to survive, and here we are not a quarter of the age of CHina, and the people are feaking out, our politicians, are moronic outta touch idiots, and in the end, when you get mad, about it, its our fault.. The People its our fault, this is happening...

Anyhow, thanks for the reply..

redshoes
reply to post by khimbar

 

Actually a US default if it were to occur would be disastrous for the world economy as a whole. Look what happened after one little bank (Lehmann Bros) went to the wall, it resulted in a world wide economic recession that we are only just beginning to emerge from.

On practical level, interests rates, which are currently at an all time low would increase in order to fill the hole. So your credit card suddenly gets out of control. Likewise your mortgage. Even if you don't have a mortgage, your landlord probably does so he needs to put your rent up to manage. Debt trickles down and those with money stop spending, making it harder for those who need it to get it. People will start defaulting on their loans, loosing their houses, cars and having to drop out of college or school. Food will become more expensive to produce and therefore to purchase. Energy prices will need to go up too, so people who have relatively comfortable lifestyles will need to start thinking carefully if that cappuccino they get on the way to work each morning is really necessary, or if they can afford to eat out at restaurants this month.

Look at what is happening in Greece, Cyprus and Russia right now with the increase in popularity in extremist political movements.

The international energy markets are primarily traded in US dollars. A us dollar is in effect an I.O.U. issued by the US government. Would you accept an I.O.U. from someone who stiffed you last month?

Doom porn . . . not true.

Interest rates will rise on new borrowing. Current rates on consumer debt would only increase if it is within your contract to do so. If they raise your rates against your contract terms, you go to court and you would win. Contracts are legally binding, regardless of economic events. Mortgages would only rise on those with ARM loans and if you were stupid enough to be talked into an ARM, you deserve whatever you get . . . a fool and his money, right? It will effect new home buyers though . . .

You've been listening to the administration's supporters (politicians/media pundits) too much . . . none of that stuff would happen by defaulting . . . And, actually, the government doesn't have to default anyway as they bring in enough revenue to service their debt obligations, if the ceiling isn't raised.

reply to post by Bicent76


You bring up an interesting point whether you had meant to or not. You meant this shouldn't be happening because we bring in so much revenue. The short, snarky answer of course is always 'not enough'...and so the subject dies right there, most of the time.

However, I wonder...perhaps we need to start demanding some answers to what you're saying. How isn't tax revenue enough? People think the wars cost trillions when that's flat untrue. Both wars combined to that date had run about 1 trillion by 2010, and close to the end of one. ...about 100 billion a year, for both wars combined..while the Pentagon was spending 7-8x's that amount (as one example)?

It's mind boggling to stop, once in awhile, to consider how much 1 trillion really IS. Only 15 nations in the world ever break 1 trillion for their entire G.D.P. Yet, we're on track to approach 7 trillion in combined Government spending (State and Federal) for 2013. Where in Gods name does it all go? Is there a "2012 movie" like Arc project somewhere in the world, busting economies?

We should literally have cities and streets of gold plated bricks (Repaved with fresh gold EACH year!) ...no kidding (All the gold ever mined in history roughly matches 2013 expected U.S. Government spending...as it just so happens) If I were a paranoid rabbit like all those weird people at ATS? I'd say there is a BIG BIG "something" there...and has been for a fair number of years.