Yellin getting pushy

[Missouri_Mike]

Yellen Sends New Warning Letter About Default...to the Wrong Person

townhall.com

Why is she sending emails about default to the only person that actually passed a budget? She may want to talk to the other two branches about that.

I also have a couple questions.

First- if we can’t pay our bills without borrowing more isn’t that bankruptcy? Seems to be the very definition of it.

Second- if stopping more spending is going to kill our economy what exactly is our economy built on? Do we have an economy based on nothing but loans? That’s a pyramid scheme.

Third- who loses money if we don’t take on more debt? Is it the FED? They hold most of our debt. So if we don’t take on more the people that are printing the money loose? Is this a bad thing?

 

[Thunk]

Do we have an economy based on nothing but loans? That’s a pyramid scheme.

Congrat's! You understand now!

Not only is it a debt based economy...it's a debt based currency! A dollar isn't a dollar until it is LENT into existence.

And yes...IT IS a pyramid scheme.

Now...wait for the thunderous KA-BOOM!

It'll only be 10 days or less...we wont be waiting long.

 

[TroglocratsRdumb]

Barry the Magnificent shut down the gubment in 2013 and the world did not come to an end.

 

[Dekster]

Yellen Sends New Warning Letter About Default...to the Wrong Person

townhall.com

Why is she sending emails about default to the only person that actually passed a budget? She may want to talk to the other two branches about that.

I also have a couple questions.

First- if we can’t pay our bills without borrowing more isn’t that bankruptcy? Seems to be the very definition of it.

Second- if stopping more spending is going to kill our economy what exactly is our economy built on? Do we have an economy based on nothing but loans? That’s a pyramid scheme.

Third- who loses money if we don’t take on more debt? Is it the FED? They hold most of our debt. So if we don’t take on more the people that are printing the money loose? Is this a bad thing?

The House controls the pursestrings.

1. No. The federal government can't declare bankruptcy. It just means payments will be late until they cash is on hand to pay them.

2. We have had a consumption-based economy since Clinton at the very least.

3. Well first, retirees and SNAP recipients will be the first to lose money. Medicare providers won't be far behind. Whether that is a bad thing depends on how much money your grandma keeps stuffed in her bra.

 

[Thunk]

who loses money if we don’t take on more debt?

Everybody holding US bonds.

But worse than that...with no credit, the dollar collapses, stores close, No gas, groceries, meds, or car parts.

Ships don't get unloaded in ports. International trade stops. Oil stops coming in.

Gasoline is $75 per gallon if you can get it at all.

Starting to get the picture?

 

[Harpy Eagle]

First- if we can’t pay our bills without borrowing more isn’t that bankruptcy? Seems to be the very definition of it.

Second- if stopping more spending is going to kill our economy what exactly is our economy built on? Do we have an economy based on nothing but loans? That’s a pyramid scheme.

Third- who loses money if we don’t take on more debt? Is it the FED? They hold most of our debt. So if we don’t take on more the people that are printing the money loose? Is this a bad thing?

1. not if you can get more credit

2. Yep, same thing it was built on the 3 times it was raised under the last guy to keep this from happening

3. The markets will crash, interest rates will go sky high and we will still owe the money

 

[Harpy Eagle]

The House controls the pursestrings.

1. No. The federal government can't declare bankruptcy. It just means payments will be late until they cash is on hand to pay them.

2. We have had a consumption-based economy since Clinton at the very least.

3. Well first, retirees and SNAP recipients will be the first to lose money. Medicare providers won't be far behind. Whether that is a bad thing depends on how much money your grandma keeps stuffed in her bra.

3. Do not forget about Veterans that will lose VA services and military retirees that will not get a check

 

[Harpy Eagle]

Barry the Magnificent shut down the gubment in 2013 and the world did not come to an end.

Shutting down the Govt is not the same as defaulting on our debt.

 

[Thunk]

3. Well first, retirees and SNAP recipients will be the first to lose money. Medicare providers won't be far behind.

Unless the democrats decide to not pay the interest on the debt and actually default.

Just because they don't have to...doesn't mean they wont.

 

[Leo123]

Congrat's! You understand now!

Not only is it a debt based economy...it's a debt based currency! A dollar isn't a dollar until it is LENT into existence.

And yes...IT IS a pyramid scheme.

Now...wait for the thunderous KA-BOOM!

It'll only be 10 days or less...we wont be waiting long.

Exactly. U.S. Treasuries are basically promissory notes backed by the U.S. Economy and our currency is fiat. Since Biden became POTUS and rescinded Trump's energy policies, our economy has taken a nosedive so you need more dollars to pay for the same bond compared to the past because the American economy is worth less today.

 

[Missouri_Mike]

The House controls the pursestrings.

1. No. The federal government can't declare bankruptcy. It just means payments will be late until they cash is on hand to pay them.

2. We have had a consumption-based economy since Clinton at the very least.

3. Well first, retirees and SNAP recipients will be the first to lose money. Medicare providers won't be far behind. Whether that is a bad thing depends on how much money your grandma keeps stuffed in her bra.

To your third point. Isn’t it amazing how the poor and grandmas are the front line of who doesn’t get paid. Not the FED who made all of this happen. Not the government who made these budgets. They get paid first I guess.

 

[Dekster]

Unless the democrats decide to not pay the interest on the debt and actually default.

Just because they don't have to...doesn't mean they wont.

My guess is they will short-change beneficiaries first just to manufacture the will to actually resolve the matter. I don't know how many people actually cash in their government bonds instead of just rolling them over at maturity. They could just switch out the bonds with ones the fed already holds that have not yet matured whose interest is already baked into the debt cake.

 

[Dekster]

3. Do not forget about Veterans that will lose VA services and military retirees that will not get a check

Ok pretty much any federal beneficiary, particularly those on any kind of benefits.

 

[Missouri_Mike]

Everybody holding US bonds.

But worse than that...with no credit, the dollar collapses, stores close, No gas, groceries, meds, or car parts.

Ships don't get unloaded in ports. International trade stops. Oil stops coming in.

Gasoline is $75 per gallon if you can get it at all.

Starting to get the picture?

Well those bonds may have been a bad bet.

If all of those retailers are going to close because the feds can’t borrow more money then maybe this entire credit system wasn’t solid.

We can drill for oil here. Maybe it just needs price adjusted.

 

[Missouri_Mike]

1. not if you can get more credit

2. Yep, same thing it was built on the 3 times it was raised under the last guy to keep this from happening

3. The markets will crash, interest rates will go sky high and we will still owe the money

1- the final gasp of every bankruptcy in history. Once the credit stops the inevitable happens.

2- maybe that’s the problem. When does it stop?

3- owe the money to who? That’s my biggest question. Who exactly does not get paid. Is it the FED? The people printing the money? China? Really? China has enough cash to float the entire US economy?

None of this makes sense.

 

[Seymour Flops]

Yellen Sends New Warning Letter About Default...to the Wrong Person

townhall.com

Why is she sending emails about default to the only person that actually passed a budget? She may want to talk to the other two branches about that.

That is the key point that I think few Americans understand. The media is pushing the "Congressional GOP wants to default" narrative to the point that only the most informed of us know it is false. I'd bet that if there was a poll asking,

Who is threatening a U.S. default by refusing to pass a debt ceiling increase?

A) Democrats
B) Republicans

All Democrats, the majority of independents and maybe a majority of Repubs would answer B).

 

[Lesh]

Yellen Sends New Warning Letter About Default...to the Wrong Person

townhall.com

Why is she sending emails about default to the only person that actually passed a budget? She may want to talk to the other two branches about that.

I also have a couple questions.

First- if we can’t pay our bills without borrowing more isn’t that bankruptcy? Seems to be the very definition of it.

Second- if stopping more spending is going to kill our economy what exactly is our economy built on? Do we have an economy based on nothing but loans? That’s a pyramid scheme.

Third- who loses money if we don’t take on more debt? Is it the FED? They hold most of our debt. So if we don’t take on more the people that are printing the money loose? Is this a bad thing?

Our economy is built on debt.

Welcome to the real world

 

[Missouri_Mike]

Our economy is built on debt.

Welcome to the real world

Nobody can live off of debt forever. Individuals, families, corporations, states, nations. An economy built on debt can’t survive. It’s a simple economic fact.

 

[Rogue AI]

If the whole of the economy is so fragile that it could collapse in days regardless of circumstances, it needs to collapse and be rebuilt with a more durable system.

 

[Lesh]

That is the key point that I think few Americans understand. The media is pushing the "Congressional GOP wants to default" narrative to the point that only the most informed of us know it is false. I'd bet that if there was a poll asking,

Who is threatening a U.S. default by refusing to pass a debt ceiling increase?

A) Democrats
B) Republicans

All Democrats, the majority of independents and maybe a majority of Repubs would answer B).

And they’d be right.

Pass a clean debt ceiling bill and move along