White House, Dems preemptively blast House GOP budget plan BEFORE it's introduced

supermouse

Wrabbit2000

In just over 48 hours, our nation defaults. This isn't a game. This isn't a joke. This isn't a news story to come and go.

Why default? Can't they just spend a bit less money and continue to pay the bond interest out of taxation?

The government brings in enough in revenue to handle daily expenses. We wouldn't have an actual default on the 17th but there would be an immediate cut to government by about 40%. The day we default (provided no unexpected expenses come up) would be the 31st when there is a large batch of payments to make. If that didn't default us the first would when there's yet another large batch of payments to make. In order to prevent this they would have to confiscate a large portion of wealth like in Greece in order to have a savings pool to operate out of, or simply create a few hundred billion dollars that would immediately enter circulation, causing high inflation.

The real threat is that in either event, investor confidence in the dollar would fall which leads people to sell their us treasuries which makes our currency worth less internationally. The effect of this is goods like oil which is 100% dependent on the strength of the dollar (even what's domestically produced is sold on the open market so would be affected) would skyrocket in price, which would in turn ripple throughout the economy and drastically raise the price on everything. Again, creating high inflation (likely hyperinflation in this scenario).

MystikMushroom

HomerinNC
reply to post by MystikMushroom

 

Maybe I did fart, but its not gonna cost the taxpayers 93 TRILLION DOLLARS....

It wasn't designed to ever really work in the first place. I'm fairly certain the Democrats went with this "exchange" garbage to appease the GOP just enough to get it passed.

When it fails miserably everyone will be looking for a better solution, the solution we should have gone with in the first place: single-payer.

You can spin it anyway you like but its still a bailout for the healthcare industry and especially for the insurance companies. One third of americans were uninsured because of the outrageous rates they have been charging now for decades, so in comes the government dresses up the pig with some lipstick and viola we have a winner.

A better situation would have been anlaysing WHY healthcare is so expensive in the states and working out solutions from there. Of course it would be the equivilant of opening up a can or worms, because you would have to tackle dozens of inter-related problems simultaneously while admitting we have had croney capitalism all along.

We dont need nationalised healthcare, we dont need insurance exchanges, we need normal supply and demand AND anti-trust laws enforced. Go after the too big to fail, put some executives in prison AND ALLOW bad decisions to become fatal.

*clink* You hear that? That's was the can being kicked down the road. Kicked to February so we can do this all again. But even better, they suspended the debt ceiling, that should work out real well. Gonna take a master chef to cook those books this time so we won't officially add any debt, like the last 150 days. So lefties keep pointing at the right and vise versa, meanwhile the hole gets deeper the congress will keep greasing palms and passing pork filled bills. QE infinity and unlimited debt ceiling for the win!


wow, $328B the first day back, nooice!