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The markets would consider it a technical default and start selling off treasuries because you would have to break contracts to shut down the military spending and it is only a matter of time until the treasury can't redeem the Medicare and SS IOU's. The military personnel would continue to work because they would be thrown in the brig if they tried to go AWOL, but the military contractors and nations that have contracts would be defaulted on. Much of this depends on the language of the contracts, but the GOP isn't going to throw away their party over this.
No they wouldnt.. we've heard this same doom and gloom when Clinton shut down the government.
No they wouldnt.. we've heard this same doom and gloom when Clinton shut down the government.
I was talking about the debt ceiling, not the gov shutdown. A gov shutdown would just hurt the economy, but we can manage. Failing to raise the debt ceiling would be catastrophic because it would be the first time we have defaulted. The debt ceiling will be raised though unless the GOP decides to commit permanent political suicide and that is unlikely.
Why anyone would say the debt ceiling shouldn't be raised until we are able to increase revenue is lost on me. The fact is we need to have more and more people paying more money into the government (through more jobs and higher paying jobs) unless we cut spending and even still there's some spending that we still need to pay off that we can't cut (the wars.)
Why anyone would say the debt ceiling shouldn't be raised until we are able to increase revenue is lost on me. The fact is we need to have more and more people paying more money into the government (through more jobs and higher paying jobs) unless we cut spending and even still there's some spending that we still need to pay off that we can't cut (the wars.)
I don't think many people are really opposed to that, but we hit the ceiling on the 17th, so there isn't much time to negotiate and raising taxes takes more than 2 weeks to get through Congress.
I don't think many people are really opposed to that, but we hit the ceiling on the 17th, so there isn't much time to negotiate and raising taxes takes more than 2 weeks to get through Congress.
I'm not saying to raise taxes, I am just saying to increase the ceiling. Mainly because the revenue increase we need won't happen from taxing the few 1%-ers 80% will not cover what millions of (formerly) middle class Americans at anywhere from 20%-30% who are making not enough to be covered in those rates.
The problem is they keep doing this. Running up to the debt ceiling and expecting more credit cards. We have to stop this. We have to figure out how to live within our means.
Thus far, the U.S. has managed to have only one year without debt. That was in 1835.
The majority of the current debt was acquired before Obama was elected in 2008.
Yet the GOP Misinformation Machine want the masses to believe it's all Obama's fault.
Huge, huge difference between "we have a problem" and "you created the problem" and it has nothing to do with the problem and all to do with politics.
Oh, brother. The naïvete is mind-numbing. In order for there to be an "obligation that is already incurred," then the obligation (i.e spending) must have already occurred. You don't owe a debt unless you obligated (i.e. spent) something in return for which you don't have!.
In simpler terms, the debt limit pays for spending because of deficit spending!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!
The United States has a SPENDING PROBLEM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stop trying to gloss it over as if we're just being good money manager's and paying our bills like good Samaritans! We are spending money we don't have, which is why the DEBT CEILING is an issue!!!!
The U.S. had no debt ceiling prior to 1917. Today, the U.S. and Denmark are the only 2 nations with a debt ceiling. The U.S. has had only one year wen it was not in debt- 1835. The majority of the current debt was acquired before Obama was elected.
Every single president inherited debt and added to it. I do not mean this to rationalize continuing to do so. Rather this blame the Obama thing is getting old.
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