What's the *worst* that could happen?

[FirstLight]

:shrug:

We still have a couple weeks to see how this plays out, but it's not looking good...the Re-thugs are just about bat-shit crazy enough to think they can crash the US economy and that will increase their chances of gaining more control, even Executive Power.

But what does it *really* mean...?
I have seen the posts here about interest rates, and other banking effects...

But I want to understand the TANGIBLE, ON-the-Ground, effects...

SS checks and veterans checks not going out, that's one group of people hit hard... ramifications are not good.

what else? :shrug:
asking to think about what we may need to do to batten down the hatches here... no food stamps? no tanf? etc?

[LiberalAndProud]

1. I think nobody knows.

My mother's life depends on Medicare. She needs dialysis four times every week. Will the center work on credit for a while? It's really frightening to contemplate the ramifications.

[AtomicKitten]

2. Moody's has issued a warning.

Hopefully the powers that be can pass a bill raising the debt ceiling that isn't tethered to anything else. Raising the debt ceiling has been and should always be dealt with as housekeeping and not a knife to hold at America's throat.

[phasma ex machina]

3. The war machine comes to a screeching halt? nt

[FirstLight]

4. if only!

...why can't this be the only bargaining-chip?

[phasma ex machina]

5. It's an impossible dream. The powers-that-be (banksters) will starve people before they give up

their war machine.

So, that's truly the worst that can happen, people starving.

[nadinbrzezinski]

8. Oh Empire is comign to an end

and it will happen relatively fast.

A collapse will bring it to and end as fast as the Russian Empire.

[grahamhgreen]

11. That's the answer to our prayers.

[nadinbrzezinski]

6. Well how scary do you wamt me to put it?

From OTHER countries and austerity programs... here are some highlights, (or the great depression in the US)

General furloughs of government workers\ workers working without pay (CHP during the Great Depression, they worked two weeks of a month sans pay for a while)...

No SS checks.

Reduction of ALL government programs

Stopping of major infrastructure projects.

Freeze pay of soldiers, and civilian workers.

Austerity to hospitals, (read no medicare in the case of the US)

Oh bright light, end of empire... it is not a question of if, but when.

In the case of the US collapse of the Dollar as a reserve currency.

I could go on.

Short version... if you think your life sucks right now... just wait,

[pscot]

7. Our honorable friends have their tit in a wringer

The House has to vote to raise the debt ceiling. They wrote the bills. They appropriated the money. They ran up the debt. and now they have to sign the check. They want to pretend it's the Dem's responsibility. Nuh-uh. Their real sponsors, the oil guys and the banksters and the war contractors really don't want a default. Gawd, do they not want a default. The Repukes are finagling for a way to pin all this on the Democrats, but not a single Democrat has to vote to raise the debt limit. It really is a no-brainer. They'ed be nuts to pull the repukes cookies out of the fire.

[OHdem10]

9. Wall Street will start pressing the Republicans if they have not

already.

In the end, the USA cannot default. Something will happen
and we will pay our bills.

[Yupster]

10. The government takes in about $ 200 billion per month

We spend about 350 billion per month.

If the debt limit isn't raised then the government must operate on a balanced budget.

So how do you go from 350 billion spending to 200 billion?

The first question will be whether to pay interest on the debt. That's about 30 billion a month. If you don't pay it the US government has defaulted on its debt. If you pay it , no problem.

I don't know who gets to decide what gets paid and what doesn't. I assume that's the President.

So let's say he decides not to default at least temporarily.

That leaves him 170 billion more to fund the government.

Basically it means cutting the size of government in half overnight.

Medicare payments to doctors can probably be delayed. Social security can be sent out.

Then it gets tougher. Which federal employees do you pay and which do you lay off.

Which programs do you stop operating and which do you keep limping along?

Can you operate the government at 50 % funding level?

For at least until people start screaming?