Zander
Platinum Member
They borrow 40%. They will have to furlough employees, eliminate programs. Cut back on the military. Stop paying for silly shit like scientific studies of shrimp running on treadmills! The glory days of spend, spend, spend are over. Spending needs to match revenue, it ain't rocket science!The question is, if the USA does not increase its debt ceiling who WILL it pay and who won't it pay?
If, as we are often told, the USA borrows 60% of the money it spends every year, (the other 40% they pay from revenues) then, sans the ability to issue new debt, in THEORY, the government will have to stop paying for 60% of its current obligations.
Now what exactly can the government stop doing that will amount to a 60% decrease in its operating budget?
In other words, add more people to the unemployment rolls. Not very sensible in a crumbling economy.
Either way, we have to face the music. So we can make the hard choice now or later. Politicians have been choosing the "later" option for the last 70 years. It doesn't seem to be working.....