Hitting the debt ceiling has nothing to do with our ability to service the debt. These people are just doing this for attention and a reaction.
http://www.streetinsider.com/Credit...AA+IDRs+on+Rating+Watch+Negative/8779274.html
And to think...the talking heads on Fox News and the Tea party tell me that nothing bad will happen if we hit the debt ceiling.....That it might actually be good!
I'm pretty sure we hit the debt ceiling some months ago.
Edit: And do you remember high how rates went the last time we were downgraded? No, me neither since it had no effect whatsoever.
Fern
Great logic! The last time we fell asleep at the wheel and drove in the ditch nothing bad happened, so lets do it again. I'm sure nothing bad can happen this time
And to think...the talking heads on Fox News and the Tea party tell me that nothing bad will happen if we hit the debt ceiling.....That it might actually be good!
Hey bonehead, nobody's talking about the last time. I'm talking about this time. We hit it a couple of months ago.
Fern
Anything that happens will be a man made creation.
The sun will still rise, set and the seasons will still change.
Tell the folks that lose their jobs and their homes that its OK because the sun still rises and sets and the seasons still change. I'm sure that will be of some consolation to them
Hey sock puppet!
We hit it last time also, but a deal was reached before treasury ran out of extraordinary measure to pay the bills. And just the fact that we came close earned a minor downgrade. Now pretend you know what will happen when we actually do default and enlighten us, I'm sure it will be entertaining
We're not going to default immediately, no, unless Obama decides to do it to increase the pain. But at some point we'll have to either have a deal or default.Hey Lemming!
We're not going to fault. It's been explained so many times here and in the MSM there's no use repeating it. But carry on with your FUD campaign and fear mongering.
Fern
In the meantime, the shutdown is doing little damage. For one thing, it applies only to the third of federal spending that Congress has to reauthorise each year. The rest, including interest payments on America’s debts and outlays on Social Security (government pensions), Medicare (health care for the old) and most government assistance for the poor, carries on as usual. In addition, functions that fall within the affected third but are deemed essential, such as defence, air-traffic control and disaster assistance, not to mention Congress and the White House, are exempt.
We're not going to default immediately, no, unless Obama decides to do it to increase the pain. But at some point we'll have to either have a deal or default.
http://www.streetinsider.com/Credit...AA+IDRs+on+Rating+Watch+Negative/8779274.html
And to think...the talking heads on Fox News and the Tea party tell me that nothing bad will happen if we hit the debt ceiling.....That it might actually be good!
No, there is no reason to default on debt. It can easily be rolled over and we have plenty of monthly revenue to pay the interest.
The options are deal or suffer major reduction in spending. I suspect it will be a deal whereby the Repubs fold.
Fern
I feel for those people, I really do. There have been a few times when I was almost homeless. But I was lucky enough to have a support chain.
No, there is no reason to default on debt. It can easily be rolled over and we have plenty of monthly revenue to pay the interest.
The options are deal or suffer major reduction in spending. I suspect it will be a deal whereby the Repubs fold.
Fern
Working just from memory, roughly 80% of government is still working but our budget is roughly 25% newly borrowed money. I don't think we can make that math work for more than a month or three. Most people who are working but not being paid do not have the ability to go more than a month or two with no income, and as they transition to food stamps and WIC and UI those spending streams will quicken. We can simply will money into existence, but under our current system that money belongs to the Fed and can only be loaned to government, and government can only borrow to existing amounts. And that's even assuming we can find takers at the same interest rates, which isn't guaranteed. We may find that we simply cannot borrow to authorized levels at the same low rates.No, there is no reason to default on debt. It can easily be rolled over and we have plenty of monthly revenue to pay the interest.
The options are deal or suffer major reduction in spending. I suspect it will be a deal whereby the Repubs fold.
Fern