America going to default

[eflatminor]

mate the leader of the house who is conservative said default would be nightmare. he no big goverment liberal. Paul ryan and eric cantor have said same thing.

Perhaps it would, but again, why would we default when we have plenty of money to pay the debt???

you won,t have same amount of money if you default.

Oh for God's sake, you're a fucking troll!

WE HAVE PLENTY OF MONEY TO AVOID DEFAULT! Why can't you acknowledge that?

Troll!

 

[decker]

Nothing in those words suggests we don't have PLENTY of money to pay the debt. Again, tell us why...in your own words...you think we would default. Who is going to refuse to make a debt payment when there is more than enough money to do so?

mate if you default markets around the world would plunge and investors would pull out. Not just my words but bbc and many non american sites words.

Now you're just being obtuse! No one is suggesting that default wouldn't be bad. We're saying that there is no logical reason we would default because we have more than enough revenue to pay the debt. Now please, answer the question: Why would we default if our revenues are more than 10 times that which is necessary to pay the debt?

The reason is that you would run out of money eventually to pay the debt off and as cnn pointed out ault, that the United States does not pay back money, principal and interest on its debt. At that point, the country is declared to be in default. Financial instruments that people hold that have been regarded as safe cease to be regarded as safe. A panic begins on money market funds and many other parts of the financial system, and a cascade that makes Lehman Brothers look like a very small event unfolds.

 

[decker]

Perhaps it would, but again, why would we default when we have plenty of money to pay the debt???

you won,t have same amount of money if you default.

Oh for God's sake, you're fucking troll!

WE HAVE PLENTY OF MONEY TO AVOID DEFAULT! Why can't you acknowledge that?

Troll!

fuck of with trolling buiness. You have not shown one fucking piece of evidence to show you have enough money to pay it off if you default forever.

so your fucking troll idiot. Your not used to dealing with someone from another country who knows his stuff on this

 

[TakeAStepBack]

Did the IRS close down too? So the govt. wont be incurring any revenue to service the debt interest obligations?



People are so confused about this it's actually comical.

 

[BreezeWood]

Now you're just being obtuse! No one is suggesting that default wouldn't be bad. We're saying that there is no logical reason we would default because we have more than enough revenue to pay the debt. Now please, answer the question: Why would we default if our revenues are more than 10 times that which is necessary to pay the debt?

that is purely a self motivated deflection from reality - the legislation is not based on debt but obligations already spent.

 

[eflatminor]

mate if you default markets around the world would plunge and investors would pull out. Not just my words but bbc and many non american sites words.

Now you're just being obtuse! No one is suggesting that default wouldn't be bad. We're saying that there is no logical reason we would default because we have more than enough revenue to pay the debt. Now please, answer the question: Why would we default if our revenues are more than 10 times that which is necessary to pay the debt?

The reason is that you would run out of money eventually to pay the debt off

"pay the debt off"...what the fuck are you talking about? We don't have to pay off the debt to avoid default. We only have to continue to make the interest payments. Again, plenty of money for that.

 

[Toddsterpatriot]

mate the leader of the house who is conservative said default would be nightmare. he no big goverment liberal. Paul ryan and eric cantor have said same thing.

Perhaps it would, but again, why would we default when we have plenty of money to pay the debt???

you won,t have same amount of money if you default. Here more evidence to throw at you
in buisness insider

One quote from Jamie Dimon is especially chilling:

Now, here's what really would happen.

Every single company with treasuries, every insurance fund, every -- every requirement that -- it will start snowballing. Automatic, you don't pay your debt, there will be default by ratings agencies. All short-term financing will disappear. I would have hundreds of work streams working around the world protecting our company for that kind of event.

And recently, he told the US Chamber of Commerce, "If anyone wants to [cap the debt ceiling], which I think would be catastrophic and unpredictable, I think they're crazy."

And Dimon apparently brought up the subject on JPMorgan's earning call yesterday too. According to the Wall Street Journal, he said that the bank is preparing for the (unlikely) case of default.

"We are praying," Dimon said, then, after a pause, "And we are planning."



Read more: Jamie Dimon: Here's What Will Happen If The Debt Ceiling Isn't Raised And The U.S. Defaults - Business Insider

you won,t have same amount of money if you default.

We won't default. And the tax revenues keep coming in.

 

[Redfish]

mate if you default markets around the world would plunge and investors would pull out. Not just my words but bbc and many non american sites words.

Now you're just being obtuse! No one is suggesting that default wouldn't be bad. We're saying that there is no logical reason we would default because we have more than enough revenue to pay the debt. Now please, answer the question: Why would we default if our revenues are more than 10 times that which is necessary to pay the debt?

The reason is that you would run out of money eventually to pay the debt off and as cnn pointed out ault, that the United States does not pay back money, principal and interest on its debt. At that point, the country is declared to be in default. Financial instruments that people hold that have been regarded as safe cease to be regarded as safe. A panic begins on money market funds and many other parts of the financial system, and a cascade that makes Lehman Brothers look like a very small event unfolds.

Why would the US run out of money? are we going to stop collecting taxes?

 

[eflatminor]

Now you're just being obtuse! No one is suggesting that default wouldn't be bad. We're saying that there is no logical reason we would default because we have more than enough revenue to pay the debt. Now please, answer the question: Why would we default if our revenues are more than 10 times that which is necessary to pay the debt?

that is purely a self motivated deflection from reality - the legislation is not based on debt but obligations already spent.

Which in no way results in default. Sorry, but if one of your precious programs gets shorted, that's NOT default. That's a step in the right direction.

 

[TakeAStepBack]

Now you're just being obtuse! No one is suggesting that default wouldn't be bad. We're saying that there is no logical reason we would default because we have more than enough revenue to pay the debt. Now please, answer the question: Why would we default if our revenues are more than 10 times that which is necessary to pay the debt?

that is purely a self motivated deflection from reality - the legislation is not based on debt but obligations already spent.

I give up. You guys have at it. We have a regular economics/finance short bus load pulling in here.

 

[Redfish]

Now you're just being obtuse! No one is suggesting that default wouldn't be bad. We're saying that there is no logical reason we would default because we have more than enough revenue to pay the debt. Now please, answer the question: Why would we default if our revenues are more than 10 times that which is necessary to pay the debt?

The reason is that you would run out of money eventually to pay the debt off

"pay the debt off"...what the fuck are you talking about? We don't have to pay off the debt to avoid default. We only have to continue to make the interest payments. Again, plenty of money for that.

the ignorance of liberals never ceases to amaze me.

 

[decker]

Now you're just being obtuse! No one is suggesting that default wouldn't be bad. We're saying that there is no logical reason we would default because we have more than enough revenue to pay the debt. Now please, answer the question: Why would we default if our revenues are more than 10 times that which is necessary to pay the debt?

The reason is that you would run out of money eventually to pay the debt off and as cnn pointed out ault, that the United States does not pay back money, principal and interest on its debt. At that point, the country is declared to be in default. Financial instruments that people hold that have been regarded as safe cease to be regarded as safe. A panic begins on money market funds and many other parts of the financial system, and a cascade that makes Lehman Brothers look like a very small event unfolds.

Why would the US run out of money? are we going to stop collecting taxes?

No that not what i mean. I am just saying that even if he does this it will still lead to damaged american ecnomey. Just read this

Once a government has defaulted and its bond rating is downgraded, that government is viewed as a riskier investment. That likely leads to that government having to pay more in interest rates on future borrowing because of the risk bondholders have to assume. For taxpayers, that means increases in property taxes, sales taxes or other rates used to secure the bond-funded project. If a government is not able to achieve an affordable interest rate on its borrowings after defaulting, taxpayers will experience major cutbacks in services and projects.

Read more: What Happens When a Government Defaults on Debt? | eHow

 

[eflatminor]

The reason is that you would run out of money eventually to pay the debt off and as cnn pointed out ault, that the United States does not pay back money, principal and interest on its debt. At that point, the country is declared to be in default. Financial instruments that people hold that have been regarded as safe cease to be regarded as safe. A panic begins on money market funds and many other parts of the financial system, and a cascade that makes Lehman Brothers look like a very small event unfolds.

Why would the US run out of money? are we going to stop collecting taxes?

No that not what i mean. I am just saying that even if he does this it will still lead to damaged american ecnomey. Just read this

Once a government has defaulted...

WE'RE NOT GOING TO DEFAULT DUMBSHIT. Next.

 

[decker]

The reason is that you would run out of money eventually to pay the debt off

"pay the debt off"...what the fuck are you talking about? We don't have to pay off the debt to avoid default. We only have to continue to make the interest payments. Again, plenty of money for that.

the ignorance of liberals never ceases to amaze me.

I am not a liberal or a conservative. Just a brit from london worried america going send world ecnomey into the tank. mate almost all the media are saying a default be nightmare. even if obama pays this off it won,t stop one of the short-term effects is that the rating agencies will review and likely lower the rating. They have scales used to determine the creditworthiness of bond issuers, and defaults can lead to an issuer's rating slipping below investment grade.

Governments unable to pay off their bonds suffer long-term effects, including not being able to access the capital markets to borrow again. This may make it difficult to meet basic service needs of taxpayers, such as education.

 

[Redfish]

The reason is that you would run out of money eventually to pay the debt off and as cnn pointed out ault, that the United States does not pay back money, principal and interest on its debt. At that point, the country is declared to be in default. Financial instruments that people hold that have been regarded as safe cease to be regarded as safe. A panic begins on money market funds and many other parts of the financial system, and a cascade that makes Lehman Brothers look like a very small event unfolds.

Why would the US run out of money? are we going to stop collecting taxes?

No that not what i mean. I am just saying that even if he does this it will still lead to damaged american ecnomey. Just read this

Once a government has defaulted and its bond rating is downgraded, that government is viewed as a riskier investment. That likely leads to that government having to pay more in interest rates on future borrowing because of the risk bondholders have to assume. For taxpayers, that means increases in property taxes, sales taxes or other rates used to secure the bond-funded project. If a government is not able to achieve an affordable interest rate on its borrowings after defaulting, taxpayers will experience major cutbacks in services and projects.

Read more: What Happens When a Government Defaults on Debt? | eHow

we understand the repercussions of a default. But its not going to happen unless obama makes it happen intentionally by not using current revenue to pay the interest on the debt.

Yes, default would be bad.

now take your valium with a glass of vodka and go back to sleep.

 

[Mustang]

The GOP is responsible for making the debt payments? I did not know what.

Please explain how we would default when we take in more than 10 times that which is necessary to make those payments. The floor is yours...

Heres another article in examiner showing why america would default and how bad it be

The debt is not just numbers; it is real money that has been lent with real expectations of returned payment. The debt is owed to multi-national banks, foreign countries, and the public itself through treasuries. If an individual defaults on a loan, the debt does not disappear. Instead, the bank takes the loss. If the United States goes into default, much of the world will suddenly face the prospect of losing about $14 trillion dollars. The results likely will be catastrophic.

Many of the world's largest banks, which are still hardly on solid footing after the 2008 financial crisis, would go bankrupt due to their exposure to the United States. Credit for simple things like houses and car loans may become unavailable as a result. Most large companies use short-term credit to make their payrolls. That credit would disappear, and as a result, many workers would have to start going without a paycheck. There is a very real possibility that people would go to their local bank or ATM and not be able to withdraw cash from their account. Hyperinflation could very likely ensue as the United States dollar becomes basically worthless. The "full faith and credit" of the United States is the only thing holding up the value of the dollar, so when that credit is gone, it is hard to imagine the dollar's surviving with it.

In response to the crisis, businesses would once more lay off workers, only worsening matters and creating a downward economic cycle, which results in a depression. The stock market would plummet as well, negatively affecting the 401(k) accounts of millions of Americans. The price of oil would skyrocket, and with it likely the price of gasoline. Ironically, the only people to benefit may be the firms which invested in the kind of credit default swaps that caused the 2008 financial disaster.

So bad all round

Nothing in those words suggests we don't have PLENTY of money to pay the debt. Again, tell us why...in your own words...you think we would default. Who is going to refuse to make a debt payment when there is more than enough money to do so?

How much money our gov't had would be irrelevant in much the same way that it would be irrelevant if a millionaire failed to pay his agreed upon financial obligations on time.

But that's not even the point. The system is based on confidence AND psychology which would both be badly shaken by failing to raise the debt limit and pay our FULL agreed upon debts ON TIME.

If you've ever watched old movies like "It's a Wonderful Life" you would know a little bit of what used to happen in the old days when there was a bank run in the days before the FDIC. (Keep in mind that banks still fail today, but the depositers don't lose their money up to a minimum of $250,000 thanks to US gov't guarantees).

Confidence (and a lack of confidence) and psychology drive human behavior, and if investor confidence was shaken by a self-imposed wound due to political infighting by people who damn well should know better, investors all over the world would begin to believe that America was not a safe place to invest and T- Bills were no longer the safe haven they've always been.

On the other side of the equation, there's the fools who have uninformed opinions which are merely bolstered by listening to talk radio and politicians who probably should be in mental wards considering the sheer degree of nonsense they spew every time they step in front of a microphone.

 

[decker]

Why would the US run out of money? are we going to stop collecting taxes?

No that not what i mean. I am just saying that even if he does this it will still lead to damaged american ecnomey. Just read this

Once a government has defaulted...

WE'RE NOT GOING TO DEFAULT DUMBSHIT. Next.

fuck you stupid fucking idiot . Jesus christ thank god not all americans think like you. Anyway if your so confident america not going to default good luck to you. But i doubt most of media or congress or american people are so confident.

 

[decker]

Heres another article in examiner showing why america would default and how bad it be

The debt is not just numbers; it is real money that has been lent with real expectations of returned payment. The debt is owed to multi-national banks, foreign countries, and the public itself through treasuries. If an individual defaults on a loan, the debt does not disappear. Instead, the bank takes the loss. If the United States goes into default, much of the world will suddenly face the prospect of losing about $14 trillion dollars. The results likely will be catastrophic.

Many of the world's largest banks, which are still hardly on solid footing after the 2008 financial crisis, would go bankrupt due to their exposure to the United States. Credit for simple things like houses and car loans may become unavailable as a result. Most large companies use short-term credit to make their payrolls. That credit would disappear, and as a result, many workers would have to start going without a paycheck. There is a very real possibility that people would go to their local bank or ATM and not be able to withdraw cash from their account. Hyperinflation could very likely ensue as the United States dollar becomes basically worthless. The "full faith and credit" of the United States is the only thing holding up the value of the dollar, so when that credit is gone, it is hard to imagine the dollar's surviving with it.

In response to the crisis, businesses would once more lay off workers, only worsening matters and creating a downward economic cycle, which results in a depression. The stock market would plummet as well, negatively affecting the 401(k) accounts of millions of Americans. The price of oil would skyrocket, and with it likely the price of gasoline. Ironically, the only people to benefit may be the firms which invested in the kind of credit default swaps that caused the 2008 financial disaster.

So bad all round

Nothing in those words suggests we don't have PLENTY of money to pay the debt. Again, tell us why...in your own words...you think we would default. Who is going to refuse to make a debt payment when there is more than enough money to do so?

How much money our gov't had would be irrelevant in much the same way that it would be irrelevant if a millionaire failed to pay his agreed upon financial obligations on time.

But that's not even the point. The system is based on confidence AND psychology which would both be badly shaken by failing to raise the debt limit and pay our FULL agreed upon debts ON TIME.

If you've ever watched old movies like "It's a Wonderful Life" you would know a little bit of what used to happen in the old days when there was a bank run in the days before the FDIC. (Keep in mind that banks still fail today, but the depositers don't lose their money up to a minimum of $250,000 thanks to US gov't guarantees).

Confidence (and a lack of confidence) and psychology drive human behavior, and if investor confidence was shaken by a self-imposed wound due to political infighting by people who damn well should know better, investors all over the world would begin to believe that America was not a safe place to invest and T- Bills were no longer the safe haven they've always been.

On the other side of the equation, there's the fools who have uninformed opinions which are merely bolstered by listening to talk radio and politicians who probably should be in mental wards considering the sheer degree of nonsense they spew every time they step in front of a microphon.

Greast post. Investors from aboard confident will be shaken and their start to pull out if you default.

 

[Redfish]

"pay the debt off"...what the fuck are you talking about? We don't have to pay off the debt to avoid default. We only have to continue to make the interest payments. Again, plenty of money for that.

the ignorance of liberals never ceases to amaze me.

I am not a liberal or a conservative. Just a brit from london worried america going send world ecnomey into the tank. mate almost all the media are saying a default be nightmare. even if obama pays this off it won,t stop one of the short-term effects is that the rating agencies will review and likely lower the rating. They have scales used to determine the creditworthiness of bond issuers, and defaults can lead to an issuer's rating slipping below investment grade.

Governments unable to pay off their bonds suffer long-term effects, including not being able to access the capital markets to borrow again. This may make it difficult to meet basic service needs of taxpayers, such as education.

Geez, try to pay attention. There is 10 times the revenue coming in that is needed to pay the interest on the debt.

 

[BreezeWood]

Why would the US run out of money? are we going to stop collecting taxes?

No that not what i mean. I am just saying that even if he does this it will still lead to damaged american ecnomey. Just read this

Once a government has defaulted...

WE'RE NOT GOING TO DEFAULT DUMBSHIT. Next.

Full Faith and Credit - DUMBSHIT.

.