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I read at Foxnews.com that the government will have little left for other than 56% of its bills when the debt ceiling is reached. There is the option of printing money- and the Fed buying it back- according to the professor cited in the piece. The government, says the University of Maryland professor, will only afford some defense, interest on the debt, Social Security, and Medicare outlays.

Will there really be cuts in TANF, AFDC, MedicAID, or other programs if the ceiling is reached? Will we see civil unrest? There will be apocalyptic predictions and Pollyannish predictions for this scenario so explain your prognostications.
 

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Semper Fi
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Personally I think they'll do an 11th hour passage of a new debt ceiling. There may be some spending cuts and tax increases.

On the off chance that they don't, I'd say look at what's going on in Spain and Greece right now as far as civil unrest. Retirees, college students, welfare recipients, and people with money invested will all be directly affected by austerity measures. I should think food riots wouldn't be all that uncommon if the SS, food stamps, and savings/investments all went bye-bye.
 

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I'll be hunting with my son in Africa when it happens, if it happens. So what it means to me is that I'll be overseas with non-negotiable US currency. I'll be stashing some alternative forms of payment just in case.
 

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I hate everyone equally.
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At the last minute, the republicans will cave as usual and they will raise the debt limit with only token spending cuts. The spending orgy will then continue unabated to appease the masses. When the ponzi scheme eventually collapses (and it has to) it will only be that much worse.
 

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If we default, it means our government is going to have to get out the checkbook, log into their bank account and decide what NEEDS to be paid and what can wait.

This country is buying into this hype that the deadline is a set deadline and we will be out of money.

Its a dog and pony show.

Here's what will happen. The sun will come up just as it has for the last 4 billion years and about 14 hours later, it will disappear. Lather rinse and repeat.

It's not the end of the world. It just means that US government will have to get it's sh1t together and start making some REAL cuts, not these joke cuts being passed around DC.

You will see some people all ****ed off but so what. They are only ****ed because they are getting that government check. Oh well. They should of seen it coming but they were too busy deciding what politician to put into office, which one would give them the most entitlements. I don't feel sorry for those people. One on one, I might but as a group- they can get bent.

Military summed it up perfect and the entitlement seekers should practice this in their daily lives:

Proper Planning Prevents Poor Performance.
 

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Debt default means you don't pay your debts. The international bond market will have a nervous breakdown. The stock market will get nervous and have a sell off. I really don't think they will default. I think there will be a midnight agreement to kick the can down the road like they always do.
 

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We already reached the debt limit some time ago however the Administration played a game to make it work till August. This whole debate is a false game or schrade for the masses. The fact is if it is not voted on, the treasury will print the money to finance the bills through a trickery of a QE.gov. If there is an agreement it will do little for the problem and also the ball is kicked further. The farther this ball is kicked down the road the harder we will fall. It is beyond reasonable resolution.
 

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To your thought on what would happen, Oh I hope so. :D:



________________________________________

Real Government answer, everybody gets what they want.
 

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It could cause major economic problems and send the country back into recession. It could make foreign governments reduce the amount of credit they extend the U.S. and demand higher interest, resulting in increased costs for everyone. Or, if the Republicans continue to play hardball and the deadline is reached with no agreement, Obama could grow a pair, could go before the American public, say that under the 14th Amendment the whole debt ceiling limit is unconstitutional, he's not going to play this game anymore, and as far as he's concerned it's business as usual and if the Republicans don't like it they can take him to court.

But as noted, he'd have to have balls to do that.

Maybe he could borrow Hillary's...
 

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Hopefully it will mean the polititions will be forced to face the problem , not kick it down the road . Hopefully they will begin to cut wasteful , out of control spending and come up with common sense solutions . But we all know that isn't going to happen . Especially with this administration .
Whatever happens , you can be sure the current administration will only make things worse .
 

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I believe it's time to start acting like we are broke as a nation.

After all, we ARE broke as a nation. Reminds me of the out of work alcoholic who keeps buying beers on a tab.
 

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The can will be kicked down the road untill there is no more road. The real question is when does the road end.:eek: Civil unrest from the inner cities will mark this point;) At that point you will need to be quick or be dead:eek:
 

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Continuing to raise the debt ceiling equals only one thing mathmatically....inflation of the likes you have never seen. Sad but true.
 

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not raising the debt ceiling means nothing,you don't default unless you quit paying,and we aren't going to quit paying. eventually enough oldtimers in dc will die off or get beaten and then maybe we can get some folks in that understand you have to cut spending,don't borrow, live within your means.
 

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If the Government defaults it won't matter if you vote right or left. It probably won't even matter if your rich or poor. Even if you have invested in gold, silver, or whatever, the benchmark against what all global credit is rated against will be gone. The whole reason the world economy functions is because the US short-term note is considered risk-free. It's the only note to have that rating. If we default, that's gone.

Any debt of ours owed to Germany will be considered in default, meaning the German note will lose value as well. It would take years before another benchmark is created, if one is. It won't just be Germany hurting though, the entire Eurozone will collapse (so many European countries hold US Debt).

All this means is that credit will be frozen. Since the world runs on credit, you can kiss "Free Market" good-bye. We'll have to repeal NAFTA and place tariffs on foreign goods. It will be the only way for the US to generate enough revenue to start making payments at higher interest rates. Meaning jobs will come back, but will pay in dollars that aren't worth anything.

Examples: Argentina (defaulted in 2001 and still an economic disaster zone), Zimbabwe, Greece.
 

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No congressman is going to vote against a debt ceiling raise right before an election cycle and risk defaulting.. debt ceiling will increase, no question... and there will be some long term goal to cut spending and all that... but like we saw back in May -- they said the same thing... but instead of getting anything done they just wait until the last minute. So they will increase the ceiling enough to get us to early 2013 and then in Jan 2013 we will be doing the same crap again.
 

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A person - or a country - can only go on borrowing more and accumulating more debt for so many years, it can't go on indefinitely. The longer it takes to grow some b*lls and face the problem head on, the more painful and lengthy the correction period.

America is not alone, there are very few nations in the world with a strong and stable economy. Even China, despite its image as a manufacturing giant, is being artificially propped up by its government. I live in Australia where the economy is supposedly good - not because of any good management by current governments (far from it), but only because of our resource boom due to China.

If America tanks, China will follow preceded or followed by an EU faceplant. Most of the rest of the world will then tag along (get dragged along) for the ride.

The start of the Great Depression was defined by historians after the fact. There are many economists, market analysts and business people (there's even rumblings in the MSM) indicating that the precarious positions that so many countries find themselves is indicative that the world is rapidly approaching another depression era, if it hasn't in fact already started.

Things are obviously very different today than they were in the 1930's so who knows what a Depression would actually mean today. I suppose a lot would depend on how many (if any) government conspiracy theories have any truth to them. I personally don't buy into the belief that the Government 'wouldn't let it happen' - they would either be unable or unwilling to prevent it.

It seems pretty obvious though that without a major change in political and personal behaviours and actions - or some other such miracle - then a dramatic shake-up such as a Depression is inevitable, not just for the US, but for the rest of the world as well.
 
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