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If we default, and I said "if", and our interest rates on our debt goes up, how much will that cost us over the long run? I realize that the variables make this a difficult question, that it's somewhat subjective, but I think that it has to be a consideration as well.
I'll respond with the same "if." If we did default, the interest rates would indeed go up and it would definitely be costly. I certainly don't want that to happen. However, that is not the only way that our interest rates could go up. They could also go up if we don't get the situation under control and our continuous addition of debt makes the path unsustainable and we become a bad bet for credit.
I'll respond with the same "if." If we did default, the interest rates would indeed go up and it would definitely be costly. I certainly don't want that to happen. However, that is not the only way that our interest rates could go up. They could also go up if we don't get the situation under control and our continuous addition of debt makes the path unsustainable and we become a bad bet for credit.
I concur with you. Which is why I think we need to be thoughtful and think all the ramifications through with regards our debt issues. I want a balanced budget, but I want to achieve that balanced budget in the best possible way, not just hacking away at expenses willy-nilly.
I concur with you. Which is why I think we need to be thoughtful and think all the ramifications through with regards our debt issues. I want a balanced budget, but I want to achieve that balanced budget in the best possible way, not just hacking away at expenses willy-nilly.
I agree with that. My concern is that, with it already being a realistic discussion, time is running short. It's been put off for so long, by both parties, that we're getting pretty close. They way Congress operates, we may soon be faced with the options of either losing the credit rating or just hacking away - neither of which are good options.
I agree with that. My concern is that, with it already being a realistic discussion, time is running short. It's been put off for so long, by both parties, that we're getting pretty close. They way Congress operates, we may soon be faced with the options of either losing the credit rating or just hacking away - neither of which are good options.
Credit rating will be lost anyway. How fast will they blow past a couple trillion or whatever bandaid they apply and be right back in the same boat??
At least some are finally starting to wake up and see how irresponsible the government has been at spending. Congress ratings at 6% lowest ever I read earlier today. Wouldn't want to be an incumbent next time around. Time for the big flush part deux next election hopefully. States were cleaned last time around time for DC.
I'll respond with the same "if." If we did default, the interest rates would indeed go up and it would definitely be costly. I certainly don't want that to happen. However, that is not the only way that our interest rates could go up. They could also go up if we don't get the situation under control and our continuous addition of debt makes the path unsustainable and we become a bad bet for credit.
If they lower our rating, and it may happen regardless of what goes on in DC, then rates would most certainly go up.
Just look at the European nations..the PIIGS. The more they borrow the higher the rate because the risk factor increases.
The US is toying with the risk factor here by not paying attention to our debt, our deficit and our revenue.
At least some are finally starting to wake up and see how irresponsible the government has been at spending. Congress ratings at 6% lowest ever I read earlier today. Wouldn't want to be an incumbent next time around. Time for the big flush part deux next election hopefully. States were cleaned last time around time for DC.
That may be the one benefit, but it comes with a high price. Congress is completly dysfunctional.
Quote:
Originally Posted by HappyTexan
If they lower our rating, and it may happen regardless of what goes on in DC, then rates would most certainly go up.
Just look at the European nations..the PIIGS. The more they borrow the higher the rate because the risk factor increases.
The US is toying with the risk factor here by not paying attention to our debt, our deficit and our revenue.
Absolutely. We're been headed down this path and pretending like it wouldn't happen because we're the USA.
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