Topic: Debt Ceiling - What would happen if US misses a payment?

[Libertas]

http://www.zerohedge.com/article/what-will-happen-if-us-misses-debt-payments?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

"Geithner said that because the United States now borrows roughly 40 cents of every dollar it spends, prioritizing payments with no debt limit increase would require cutting 40 percent of all government expenditures."

The answer is obvious, although Turbo Timmy will never advocate it!

 

Likely outcome of a technical default?  Ratings drop (cue SH for rant, he loves Moody's  ), dollar craps itself, turmoil in markets and what takes over as reserve currency du juor...who knows?

It won't be TEOTWAWKI but it will suck short term.

SLASH SPENDING NOW WHILE IT IS EASIER TO DO SO, WAITING WILL MAKE IT MORE PAINFUL (SEE GREECE MORONS)!

 

[charlesoakwood]

I tink, in the past, we have missed 3 payments.  Missing a payment is not as bad as Timmy and Benny running around crying and rending their hair shirts.  I'm sticking with those holding their feet to the fire - no extension of the debt limit - cut spending.

[brad]

Standard and Poor's said they would immediately downgrade  our 'AAA/A-1+' sovereign credit rating

[Libertas]

If they say "immediately" then there is already a valid reason to lower it now, waiting for another reason looks childish.

They think all this grotesque debt piled on since Obammy took office is a good thing?

 

[Sectionhand]

Ratings drop (cue SH for rant, he loves Moody's  )

I was about to but since you already mentioned it ....

 

[Predator Don]

Standard and Poor doesn't need to downgrade our credit rating. obama and company are doing a great job of it themselves.

It should scare the chit out of you those in control are stating, without saying it out loud, if we can't print dollars( 2+ trillion and counting) because we need all this new money to "invest", we are screwed.

Here's an idea....Go get all the credit cards you can, run the balances to the max and just before default, go around whining "if you don't allow me to qualify for more cards, the country will grind to a halt because I have no more money to "invest".

[charlesoakwood]

Last Train to Brokesville

[Weisshaupt]

I tink, in the past, we have missed 3 payments.  Missing a payment is not as bad as Timmy and Benny running around crying and rending their hair shirts.  I'm sticking with those holding their feet to the fire - no extension of the debt limit - cut spending

A missed payment isn't a big deal, as long as those holding the paper expect it will be made up to them when "things are sorted out"
Landlords do it all of the time for long term/good tenants. People already know the ratings are BS, but they also know that the Government will mostly likely pay the bond holders before paying anything else. Of course with Borat in charge, we might get surprised. 

[Libertas]

I tink, in the past, we have missed 3 payments.  Missing a payment is not as bad as Timmy and Benny running around crying and rending their hair shirts.  I'm sticking with those holding their feet to the fire - no extension of the debt limit - cut spending

A missed payment isn't a big deal, as long as those holding the paper expect it will be made up to them when "things are sorted out"
Landlords do it all of the time for long term/good tenants. People already know the ratings are BS, but they also know that the Government will mostly likely pay the bond holders before paying anything else. Of course with Borat in charge, we might get surprised. 

Ain't that the wicked truth!

[rickl]

Of course with Borat in charge, we might get surprised. 

That's what I'm thinking.  Karl Denninger has been saying that refusal to raise the debt ceiling does not automatically mean default.  It just means that the government has to stop deficit spending and live within its means.  They can cut elsewhere without defaulting on their bond payments.

But Obama is a wild card.  He is capable of anything.  Remember the GM and Chrysler bondholders?

[andrefitzgerald]

Well,if this gonna happens everybody will face a great financial crisis.And i think this will be the economic doomsday for Americans and the other foreign capitalist as well.As what President Obama addressed the debt ceiling in a White House news conference Wednesday.He was extremely critical of the Congressional Republicans that are hesitant to elevate the debt ceiling and hesitate at elevated tax revenue. The president said it is time for everyone to "take on their sacred cows" and "get it done.". Predictable, reactions to the conference have been divided along party lines. I found this here: Obama blasts Republicans on debt ceiling.

[RickZ]

Well,if this gonna happens everybody will face a great financial crisis.And i think this will be the economic doomsday for Americans and the other foreign capitalist as well.As what President Obama addressed the debt ceiling in a White House news conference Wednesday.He was extremely critical of the Congressional Republicans that are hesitant to elevate the debt ceiling and hesitate at elevated tax revenue. The president said it is time for everyone to "take on their sacred cows" and "get it done.". Predictable, reactions to the conference have been divided along party lines. I found this here: Obama blasts Republicans on debt ceiling.

I'm having a difficult time deciding if this is spam or not.  That 'newsytype' website is a joke.

[IronDioPriest]

Yup. Spam-sense is tingling. We'll see.

[Predator Don]

Obama is such a dick. He isn't very Presidential. He attempts to belittle at every turn. You gotta be a dick to have the gall to mention keeping your "sacred cows" in check.

The worst years of my existence.

[Libertas]

Looks spamish to me.  I have no doubt Oblahmah is capable of such doubletalk, he lies his ass off with regularity, but that site reads like a Obamabot propaganda burst right out of Jarrett's orifice!