US default could be disastrous choice for economy

Calling on all the financial gurus here to help me decipher this, do you see a default coming too.?



news.yahoo.com...


The government now borrows about 42 cents of every dollar it spends. Imagine that one day soon, the borrowing slams up against the current debt limit ceiling of $14.3 trillion and Congress fails to raise it. The damage would ripple across the entire economy, eventually affecting nearly every American, and rocking global markets in the process

This is a big lie.

The US wouldn't default if the debt ceiling isn't raised.

If it isn't raised, that means that the US has to run a NO DEFICIT budget. It doesn't mean that it would default.

This is propaganda so the debt ceiling is raised and the crazy continues...

If the debt ceiling ain't raised, IT'S IN FACT IMPOSING A NO DEFICIT BUDGET ON THE US GOVERNMENT.


Want to end crazy spending? DON'T RAISE THE DEBT CEILING.

Originally posted by Vitchilo
This is a big lie.

The US wouldn't default if the debt ceiling isn't raised.

If it isn't raised, that means that the US has to run a NO DEFICIT budget. It doesn't mean that it would default.

This is propaganda so the debt ceiling is raised and the crazy continues...

If the debt ceiling ain't raised, IT'S IN FACT IMPOSING A NO DEFICIT BUDGET ON THE US GOVERNMENT.


Want to end crazy spending? DON'T RAISE THE DEBT CEILING.

I agree that the crazy spending would end if they don't raise the debt ceiling , so is this just scare tactics to insure that the ceiling gets raised?

reply to post by infojunkie2

so is this just scare tactics to insure that the ceiling gets raised?

Yes. Since the average guy doesn't even know what the debt ceiling is... you can bet they won't dig deeper and will believe whatever the ``experts`` on tv tells them.

If you read the mainstream forums, you can see it...

reply to post by infojunkie2

Try taking a step back. This whole situation is a setup. Going into debt to keep things running is a long-term formula for total disaster. It goes way beyond the government. How many individuals operate their lives this way?

The current target is the US government. Debt ceiling or no debt ceiling, the bigger fact is the DEBT ITSELF.
If the government is really this much in debt, then who really owns it? When push comes to shove, who can call the shots? This debt has apparently succeeded in depriving us of our democracy.

Next target: your own personal sovereignty.

Everyone gets pretty wound up over all of this.

At the end of the day, the economy is the economy, and it will find ways of functioning with or without the U.S. official currency.

People need food, housing, power, etc. Businesses need manpower and supplies. If the proverbial push comes to shove - it will not be fun or pretty, but people and businesses will do what they need to in order to survive.

For example - Facebook may begin offering a way of crediting people with 'facebook credits' to employers. It may sound kind of silly - but if you stop and think about it - it's a ready stand-in for the dollar with a value relative to a number of other currency systems. Wal-Mart would being offering a service to exchange facebook credits for in-store credits, if not utilizing a more direct and universal system.

In all probability - banking systems would simply fragment their own bank notes off of the dollar. This would be rather rough-riding, but would allow you to retain some value of any money in your bank (the transition to facebook credits presumes a rather catastrophic collapse of other banking systems).

The point is, however, that people would find a way to make things work. It's the way we are wired, on a physiological level.

That said - it could all be avoided if we just stop raising the debt ceiling and start running a budget that isn't in the deficit. The problem is that it would require such deep cuts or such fundamental restructuring of the entire medicare, social security, and military financial structure that no one wants to cut it. Those three are the biggest when it comes to federal spending, and need to be addressed - as they each are at, over, or approach a trillion dollars, each.