Debt Default....what happens

[Lesh]

I don't constantly ask the credit card company to increase my limit every three months.
That fucking existing debt you are yammering about was still overspending over revenue.
The credit card company doesn't allow me to outspend my credit limit then ask for more after the fact.

Your credit card company does not manage your finances. They will gladly let you get debt you can’t pay.

How stupid are you?

 

[Toddsterpatriot]

This is not that. This is paying EXISTING DEBT you dope.

This is like saying… yea my credit card bill is too high… I’m just not gonna pay it

This is like saying… yea my credit card bill is too high… I’m just not gonna pay it

Stopping new debt doesn't mean you're not current on old debt, moron.

 

[petro]

Your credit card company does not manage your finances. They will gladly let you get debt you can’t pay.

How stupid are you?

My credit limit says otherwise.

 

[Lesh]

This is like saying… yea my credit card bill is too high… I’m just not gonna pay it

Stopping new debt doesn't mean you're not current on old debt, moron.

Raising the debt ceiling pays for EXISTING debt...what part of that do you not understand?

Congress appropriates money BEFORE they have the ability to pay that debt. They raise the debt ceiling in that amount.

Morons

 

[M14 Shooter]

This is not that. This is paying EXISTING DEBT you dope.
This is like saying… yea my credit card bill is too high… I’m just not gonna pay it

Your ignorance rears its empty head.... again.
The inability to borrow money does not preclude us from servicing our debt - that is, paying bonds off as they come due.

 

[Lesh]

Your ignorance rears its empty head.... again.
The inability to borrow money does not preclude us from servicing our debt - that is, paying bonds off as they come due.

An actual U.S. debt default would likely send shockwaves through global financial markets, as investors would lose confidence in the U.S. ability to pay its bonds, which are seen as among the safest investments and serve as building blocks for the world's financial system.

That "could leave some lasting scars, including a permanent increase in the cost of funding U.S. federal debt," said David Kelly, chief global strategist at J.P. Morgan Asset Management.

Reporting by Davide Barbuscia, Additional reporting by Saqib Iqbal Ahmed; Editing by Megan Davies and Josie Kao
Our Standards: The Thomson Reuters Trust Principles.

 

[petro]

EXISTING DEBT

That is the problem you are not grasping asshole.
How long do you think we can just keep kicking the can down the road till it all implodes?

 

[Toddsterpatriot]

Raising the debt ceiling pays for EXISTING debt...what part of that do you not understand?

Congress appropriates money BEFORE they have the ability to pay that debt. They raise the debt ceiling in that amount.

Morons

Raising the debt ceiling pays for EXISTING debt...what part of that do you not understand?

I understand your error just fine.

Congress appropriates money BEFORE they have the ability to pay that debt.

And now they'll have to unappropriate some of that money.

 

[Kondor3]

If we default then our priorities need to be...

1. Defense

2. Our own people

3. Servicing the debt insofar as may still be practicable

4. Everybody and everything else in the very unlikely even that there is anything leftover from 1-3 above

 

[Lesh]

An actual U.S. debt default would likely send shockwaves through global financial markets, as investors would lose confidence in the U.S. ability to pay its bonds, which are seen as among the safest investments and serve as building blocks for the world's financial system.

That "could leave some lasting scars, including a permanent increase in the cost of funding U.S. federal debt," said David Kelly, chief global strategist at J.P. Morgan Asset Management.

Reporting by Davide Barbuscia, Additional reporting by Saqib Iqbal Ahmed; Editing by Megan Davies and Josie Kao
Our Standards: The Thomson Reuters Trust Principles.

What part of that do you not understand?

Where was your debt concerns when Trump was piling up that that and the GOP Congress was raising the debt ceiling every time it was reached?

 

[Lesh]

Understanding the Debt Ceiling​

Congress had free rein over the country’s finances before the debt ceiling was created. In 1917, the debt ceiling was created during World War I to make the federal government fiscally responsible.1


Over time, the debt ceiling has been raised whenever the United States has approached the limit. By hitting the limit and failing to pay interest payments to bondholders, the United States would be in default, lowering its credit rating and increasing the cost of its debt.

 

[Toddsterpatriot]

Understanding the Debt Ceiling​

Congress had free rein over the country’s finances before the debt ceiling was created. In 1917, the debt ceiling was created during World War I to make the federal government fiscally responsible.1


Over time, the debt ceiling has been raised whenever the United States has approached the limit. By hitting the limit and failing to pay interest payments to bondholders, the United States would be in default, lowering its credit rating and increasing the cost of its debt.

You' d have to be Biden level stupid to not use incoming revenue to pay the interest first.

 

[Lesh]

You' d have to be Biden level stupid to not use incoming revenue to pay the interest first.

It doesn't MATTER jackass.

We default and it all goes to shit. AND THE DEBT INCREASES

Read what was posted

 

[Toddsterpatriot]

It doesn't MATTER jackass.

We default and it all goes to shit. AND THE DEBT INCREASES

Read what was posted

And I said it'd be stupid to default.

So Biden will probably do it.

 

[Lesh]

And I said it'd be stupid to default.

So Biden will probably do it.

It's not Biden's choosing.

It's your stupid MAGArats in Congress

Yesterday’s market plunge seemed to suggest that investors, after months of ignoring the fight over raising the debt ceiling, were suddenly taking the once-unthinkable possibility of a U.S. debt default seriously. Treasury Secretary Janet Yellen warned lawmakers at a Senate hearing of “catastrophic” consequences if they failed to suspend or raise the debt limit before the government hit it, which the Treasury estimated could come as soon as Oct. 18.
This isn’t the first time the government has flirted with the debt ceiling, an artificially imposed borrowing limit that Congress used to raise routinely, but that in recent years has become a partisan cudgel. Nor is it the most immediate economic threat coming out of Washington. A government shutdown, which could happen as early as Friday, would furlough federal workers and disrupt other government services.
But a potential government debt default is what particularly worries market watchers. Here are two of the main scenarios being discussed on Wall Street as the debt ceiling closes in.
The “short-term panic” scenario. A brush with a ceiling-induced default in 2011, the first in a while, riled markets and led many to predict that the U.S.’s ability to borrow would be permanently affected: Standard & Poor’s downgraded the country’s credit rating for the first time in 70 years. (A decade later, interest rates are lower than ever.) Similarly, in 2013, during another debt-ceiling standoff, short-term government borrowing rates shot up, but quickly fell back to where they were before once the debt ceiling was raised. In both cases, the broader economy — jobs, house prices and the like — over time brushed off the temporarily higher borrowing costs.
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Continue reading the main story


Yellen’s “catastrophic” scenario. A prolonged standoff could result in something a lot worse than what happened in 2011 or 2013. The main problem: Treasuries are widely used as collateral to back up short-term loans. If the U.S. defaults on some of its bonds, lenders may be unwilling to accept those tainted securities as collateral. Worse, Wall Street’s trading systems have not really been set up to sort defaulted Treasuries from the rest, because few thought a U.S. default was possible. This could lead to a short-term lending market that grinds to a halt, like at the beginning of the financial crisis.
Investors appear to have regained a measure of confidence today, with stock futures up and bond yields falling. It could be a sign that investors are betting on the first scenario — yet another episode of debt-ceiling brinkmanship that is eventually resolved before things tip over the edge. What do you think? Let us know at dealbook@nytimes.com. Include your name and location and we may feature your response in a future newsletter.

 

[Toddsterpatriot]

It's not Biden's choosing.

It's your stupid MAGArats in Congress

Yesterday’s market plunge seemed to suggest that investors, after months of ignoring the fight over raising the debt ceiling, were suddenly taking the once-unthinkable possibility of a U.S. debt default seriously. Treasury Secretary Janet Yellen warned lawmakers at a Senate hearing of “catastrophic” consequences if they failed to suspend or raise the debt limit before the government hit it, which the Treasury estimated could come as soon as Oct. 18.
This isn’t the first time the government has flirted with the debt ceiling, an artificially imposed borrowing limit that Congress used to raise routinely, but that in recent years has become a partisan cudgel. Nor is it the most immediate economic threat coming out of Washington. A government shutdown, which could happen as early as Friday, would furlough federal workers and disrupt other government services.
But a potential government debt default is what particularly worries market watchers. Here are two of the main scenarios being discussed on Wall Street as the debt ceiling closes in.
The “short-term panic” scenario. A brush with a ceiling-induced default in 2011, the first in a while, riled markets and led many to predict that the U.S.’s ability to borrow would be permanently affected: Standard & Poor’s downgraded the country’s credit rating for the first time in 70 years. (A decade later, interest rates are lower than ever.) Similarly, in 2013, during another debt-ceiling standoff, short-term government borrowing rates shot up, but quickly fell back to where they were before once the debt ceiling was raised. In both cases, the broader economy — jobs, house prices and the like — over time brushed off the temporarily higher borrowing costs.
ADVERTISEMENT
Continue reading the main story


Yellen’s “catastrophic” scenario. A prolonged standoff could result in something a lot worse than what happened in 2011 or 2013. The main problem: Treasuries are widely used as collateral to back up short-term loans. If the U.S. defaults on some of its bonds, lenders may be unwilling to accept those tainted securities as collateral. Worse, Wall Street’s trading systems have not really been set up to sort defaulted Treasuries from the rest, because few thought a U.S. default was possible. This could lead to a short-term lending market that grinds to a halt, like at the beginning of the financial crisis.
Investors appear to have regained a measure of confidence today, with stock futures up and bond yields falling. It could be a sign that investors are betting on the first scenario — yet another episode of debt-ceiling brinkmanship that is eventually resolved before things tip over the edge. What do you think? Let us know at dealbook@nytimes.com. Include your name and location and we may feature your response in a future newsletter.

It's not Biden's choosing.

If they take the roughly $400 billion of monthly tax revenues and don't use it to pay
the interest on the debt, FIRST, it'll be Biden's fault.

 

[M14 Shooter]

An actual U.S. debt default would likely send shockwaves through global financial markets, a

The inability to borrow money does not preclude us from servicing our debt - that is, paying bonds off as they come due.

 

[M14 Shooter]

Over time, the debt ceiling has been raised whenever the United States has approached the limit. By hitting the limit and failing to pay interest payments to bondholders, the United States would be in default, lowering its credit rating and increasing the cost of its debt.

The inability to borrow money does not preclude us from servicing our debt - that is, paying bonds off as they come due.

 

[M14 Shooter]

It's not Biden's choosing.

It is.
The only reason Biden won't sign the GOP bill is he doesn't want to decrease spending.

 

[M14 Shooter]

We default and it all goes to shit. AND THE DEBT INCREASES

It doesn't matter, jackass - read what was posted:
The inability to borrow money does not preclude us from servicing our debt - that is, paying bonds off as they come due.