What happens in a US debt default?

[Dad2three]

The usa won't default on debt due to gop winning in landslide election and taking the senate.

Historically speaking, the federal debt increases under Republican control.

Not any more.

Sure, they magically became fiscally conservative, THAT'S why they CHOSE not to offset MORE tax cuts

April, 29th, 2014

GOP Hypocrites Busted For Trying to Add $310 Billion to the Deficit Via Tax Breaks

GOP Hypocrites Busted For Trying to Add 310 Billion to the Deficit Via Tax Breaks

May 8, 2014

Dems Accuse GOP of Hypocrisy for Supporting Costly Tax Credit
A research and development bill would cost $156 billion over 10 years—and Republicans have not proposed revenue to offset it.

Dems Accuse GOP of Hypocrisy for Supporting Costly Tax Credit - NationalJournal.com

Jul 11, 2014 - House Republicans vote for business tax cut with no offset

August 5, 2014

House Republicans adding to debt as balanced budget commitment wavers
Tax measures, spending bills not offset, costs hidden with accounting gimmicks

House Republicans adding to debt as balanced budget commitment wavers - Washington Times

 

[Dad2three]

The usa won't default on debt due to gop winning in landslide election and taking the senate.

lol, on record low (not since WW2 has so few voted) election? LANDSLIDE? Oh you meant Obama in 2008 and 2012?

 

[Judicial review]

I already know what will happen. The GOP has to move to the right on fiscal issues, the debt must come down. They are painted in a corner. Now a liberal will just continue to print money till no end and destroy our country. Afterall they don't like it as is and the only way to change is is to destroy it and no better way then to make it fail financially.

I wont have this discussion with you, because you wont change my mind on what I already know.

 

[boedicca]

The U.S. government won't default on the debt. There are four alternatives to dealing with debt:

1. Default - won't happen
2. Cut spending - won't happen
3. Raise taxes - not feasible to raise them enough to address debt
4. Inflation - DingDingDing we have a winner!

The Fed will continue the age old method for dealing with debt - devalue the currency and spur inflation so that it is repaid with cheaper money.

 

[EdwardBaiamonte]

The usa won't default on debt due to gop winning in landslide election and taking the senate.

Historically speaking, the federal debt increases under Republican control.

dear, when did Republicans control 3 branches of govt plus press, electorate, Hollywood and higher ed.???

lol, you ignorant tool

dear, if someone is ignorant please say exactly why or admit as a typical liberal you lack the IQ to be here. Thanks

 

[Dad2three]

The usa won't default on debt due to gop winning in landslide election and taking the senate.

Historically speaking, the federal debt increases under Republican control.

dear, when did Republicans control 3 branches of govt plus press, electorate, Hollywood and higher ed.???

lol, you ignorant tool

dear, if someone is ignorant please say exactly why or admit as a typical liberal you lack the IQ to be here. Thanks

Stop showing you and your ideology belong in a place like Russia or China!

 

[Dad2three]

I already know what will happen. The GOP has to move to the right on fiscal issues, the debt must come down. They are painted in a corner. Now a liberal will just continue to print money till no end and destroy our country. Afterall they don't like it as is and the only way to change is is to destroy it and no better way then to make it fail financially.

I wont have this discussion with you, because you wont change my mind on what I already know.

More right wing nonsense. The right (specifically Repugs/conservatives) gave up beiung fiscally responsible decades ago and adopted Reagan's starve the beast policies instead, NOW they want to try to finish the job, lol

It's been the Dems who have chosen to be the fiscally responsible party the past 30+ years as the GOPers fought them EVERY step of the way!

 

[Judicial review]

I already know what will happen. The GOP has to move to the right on fiscal issues, the debt must come down. They are painted in a corner. Now a liberal will just continue to print money till no end and destroy our country. Afterall they don't like it as is and the only way to change is is to destroy it and no better way then to make it fail financially.

I wont have this discussion with you, because you wont change my mind on what I already know.

More right wing nonsense. The right (specifically Repugs/conservatives) gave up beiung fiscally responsible decades ago and adopted Reagan's starve the beast policies instead, NOW they want to try to finish the job, lol

It's been the Dems who have chosen to be the fiscally responsible party the past 30+ years as the GOPers fought them EVERY step of the way!

So why are Obamas budget proposals over 2 trillion and the gop budgets involve reducing yearly budget with radical spending cuts and national debt payments?

Oh that's right... you are full of shit. Ignore.

 

[Dad2three]

I already know what will happen. The GOP has to move to the right on fiscal issues, the debt must come down. They are painted in a corner. Now a liberal will just continue to print money till no end and destroy our country. Afterall they don't like it as is and the only way to change is is to destroy it and no better way then to make it fail financially.

I wont have this discussion with you, because you wont change my mind on what I already know.

More right wing nonsense. The right (specifically Repugs/conservatives) gave up beiung fiscally responsible decades ago and adopted Reagan's starve the beast policies instead, NOW they want to try to finish the job, lol

It's been the Dems who have chosen to be the fiscally responsible party the past 30+ years as the GOPers fought them EVERY step of the way!

So why are Obamas budget proposals over 2 trillion and the gop budgets involve reducing yearly budget with radical spending cuts and national debt payments?

Oh that's right... you are full of shit. Ignore.

Oh right the MYTHICAL GOP budget deals? Like Ryans? Where actual MATH fails them???


Wingnutters (like you) actually believe the GOP is serious? lol

 

[EdwardBaiamonte]

I already know what will happen. The GOP has to move to the right on fiscal issues, the debt must come down. They are painted in a corner. Now a liberal will just continue to print money till no end and destroy our country. Afterall they don't like it as is and the only way to change is is to destroy it and no better way then to make it fail financially.

I wont have this discussion with you, because you wont change my mind on what I already know.

More right wing nonsense. The right (specifically Repugs/conservatives) gave up beiung fiscally responsible decades ago and adopted Reagan's starve the beast policies instead, NOW they want to try to finish the job, lol

It's been the Dems who have chosen to be the fiscally responsible party the past 30+ years as the GOPers fought them EVERY step of the way!

So why are Obamas budget proposals over 2 trillion and the gop budgets involve reducing yearly budget with radical spending cuts and national debt payments?

Oh that's right... you are full of shit. Ignore.

Oh right the MYTHICAL GOP budget deals? Like Ryans? Where actual MATH fails them???


Wingnutters (like you) actually believe the GOP is serious? lol

serious enough to propose 30 Balanced Budget Amendments all of which were killed by liberals who as a matter of philosophy want bigger and bigger govt and higher and higher taxes.

Dumbto3 wants to pretend both parties are the same about spending so we can grow more and more toward libcommieism.

 

[Dad2three]

I already know what will happen. The GOP has to move to the right on fiscal issues, the debt must come down. They are painted in a corner. Now a liberal will just continue to print money till no end and destroy our country. Afterall they don't like it as is and the only way to change is is to destroy it and no better way then to make it fail financially.

I wont have this discussion with you, because you wont change my mind on what I already know.

More right wing nonsense. The right (specifically Repugs/conservatives) gave up beiung fiscally responsible decades ago and adopted Reagan's starve the beast policies instead, NOW they want to try to finish the job, lol

It's been the Dems who have chosen to be the fiscally responsible party the past 30+ years as the GOPers fought them EVERY step of the way!

So why are Obamas budget proposals over 2 trillion and the gop budgets involve reducing yearly budget with radical spending cuts and national debt payments?

Oh that's right... you are full of shit. Ignore.

Oh right the MYTHICAL GOP budget deals? Like Ryans? Where actual MATH fails them???


Wingnutters (like you) actually believe the GOP is serious? lol

serious enough to propose 30 Balanced Budget Amendments all of which were killed by liberals who as a matter of philosophy want bigger and bigger govt and higher and higher taxes.

Dumbto3 wants to pretend both parties are the same about spending so we can grow more and more toward libcommieism.

You mean with voodoo economics like cutting taxes and expecting more revenues? lol

 

[Freemason9]

I already know what will happen. The GOP has to move to the right on fiscal issues, the debt must come down. They are painted in a corner. Now a liberal will just continue to print money till no end and destroy our country. Afterall they don't like it as is and the only way to change is is to destroy it and no better way then to make it fail financially.

I wont have this discussion with you, because you wont change my mind on what I already know.

Deficit spending has NEVER, EVER harmed our economy. Restraining spending, on the other hand, has caused economic recessions. You might want to rethink your theories.

 

[Judicial review]

I already know what will happen. The GOP has to move to the right on fiscal issues, the debt must come down. They are painted in a corner. Now a liberal will just continue to print money till no end and destroy our country. Afterall they don't like it as is and the only way to change is is to destroy it and no better way then to make it fail financially.

I wont have this discussion with you, because you wont change my mind on what I already know.

Deficit spending has NEVER, EVER harmed our economy. Restraining spending, on the other hand, has caused economic recessions. You might want to rethink your theories.

I'm taling about paying down national debt. Not yearly budget. They don't have a choice.

 

[oldfart]

I already know what will happen. The GOP has to move to the right on fiscal issues, the debt must come down. They are painted in a corner. Now a liberal will just continue to print money till no end and destroy our country. Afterall they don't like it as is and the only way to change is is to destroy it and no better way then to make it fail financially.

I wont have this discussion with you, because you wont change my mind on what I already know.

Deficit spending has NEVER, EVER harmed our economy. Restraining spending, on the other hand, has caused economic recessions. You might want to rethink your theories.

I'm taling about paying down national debt. Not yearly budget. They don't have a choice.

The national debt is a stock concept, while the deficit is a flow concept. With minor adjustments, the change in the national debt IS the budget surplus. How do you decrease national debt without running a budget surplus?

 

[regent]

The US paid off its debt just once in our history and that under a Democratic president. Anyone want to guess the result of that payoff?

 

[Rozman]

What are the consequences of a US default?

No one really knows exactly what would happen, but the likelihood is that markets around the world would plunge and global interest rates would rise.

This is because if the US government could not repay the money it owed bondholders, the value of the bonds would decrease. And the yield - the return the government pays to an investor - would rise. This is because it would be perceived as a less safe investment.

This would prompt interest rates around the world, which are often tied to those of US Treasuries, to spike.

Furthermore, the impact on the US's creditors could be dire. Japan, for instance, owns about $1.14 trillion of US debt - which is equivalent to 20% of its annual economic output.

In the US, Goldman Sachs estimates that $175bn would immediately be withdrawn from the US economy and it could lead to a very deep recession.


BBC News - What happens in a US debt default

I just got this on Drudge....

Paying Down The Debt Is Now Almost Mathematically Impossible Zero Hedge

 

[CrusaderFrank]

Obama has twice now threatened us seniors with starvation and destitution by withholding their Social Security checks unless he got his way on the budget

 

[EdwardBaiamonte]

You mean with voodoo economics like cutting taxes and expecting more revenues? lol

dear, the more you cut govt the more the private sector can grow( becuase you're not sucking money out of it) and the bigger the tax base is.

Do you understand?

 

[80zephyr]

What are the consequences of a US default?

No one really knows exactly what would happen, but the likelihood is that markets around the world would plunge and global interest rates would rise.

This is because if the US government could not repay the money it owed bondholders, the value of the bonds would decrease. And the yield - the return the government pays to an investor - would rise. This is because it would be perceived as a less safe investment.

This would prompt interest rates around the world, which are often tied to those of US Treasuries, to spike.

Furthermore, the impact on the US's creditors could be dire. Japan, for instance, owns about $1.14 trillion of US debt - which is equivalent to 20% of its annual economic output.

In the US, Goldman Sachs estimates that $175bn would immediately be withdrawn from the US economy and it could lead to a very deep recession.


BBC News - What happens in a US debt default

How does a nation that prints it's own money, default? lol

No, The United States Will Not Go Into A Debt Crisis, Not Now, Not Ever

The reason why it’s not true is because we live in a fiat currency system, where the United States government can create an infinite number of dollars at no cost to meet its obligations. A Treasury bill is a promise that the government will give you US dollars–something that the United States government can produce infinitely and at no cost.

That’s the reason why interest rates on United States debt have only gone down even as the debt has ballooned. That’s the reason why Great Britain has very low rates on its debt despite having very high debt-to-GDP. That’s the reason why Japan has an astounding debt-to-GDP ratio and still enjoys some of the lowest rates ever. Investors have bet for so long that there would be a run on Japanese debt and have ended up so ruined that in financial circles that trade is called “the Widowmaker”


No The United States Will Not Go Into A Debt Crisis Not Now Not Ever - Forbes

Hmm. How does a nation that prints its own money default? Maybe you could ask Russia, Germany, Argentina and Zimbabwe?

I am fairly certain no one was printing their money for them either.

Mark

 

[Rozman]

I will say once again...
I have no doubt the Democrats at some point will demand the nationalization of our private
retirement accounts....

There is way too much money that these bastards don't control.
Most folks nearing retirement have to have nearly $200k in IRA's,401 k plans or a combination of the both....

Democrats see the private sector taking a distribution of thousands during the year leaving the rest in
the account...
Dems have to be getting hard ons over the fact that there's a whole lot of money just sitting around waiting for them.