What's the worst that could happen? 7 debt-default doomsday scenarios

[RDS]

So far nothing positive and they are still playing with fire.

Faced with some Republicans shrugging their shoulders at the thought of the U.S. defaulting on its debt obligations for the first time ever, notable economists are warning that the consequences would be the economic equivalent of a swarm of frogs and a plague of locusts.

The worst of the doomsday scenarios painted by economists involve an outright depression, as the effects of missing a debt interest payment cascade through the economy, financial markets and ultimately to Main Street.
While many analysts agree that a default still remains unlikely, warnings are beginning to intensify that Washington is skating too close to a perilous line.
"The devastation to the United States would be so severe that it would take decades to recover from the Depression caused by a default and the attendant dumping of trillions of dollars of U.S. Treasury securities on the global financial markets," banking analyst Dick Bove, at Rafferty Capital Markets, said in a report for clients.

What's the worst that could happen? 7 debt-default doomsday scenarios - NBC News.com

 

[Buddha C]

14th Amendment, 4th Section:
The Validity of the Public Debt, when Authorized by Law (having passed the legislative process, my clarification, not in the physical document itself),... shall not be questioned.

A lot of legal experts say Obama already has the premise to override congress (and to override him based on the Constitution would take Senate approval, which is Democrat controlled)

 

[Gladiator]

One way to look at the problem of the US Government deficit, is that many congressmen have many things they want to fund.

The way congressmen get their projects funds, is by agreeing to fund other congressmen's projects. So everything that any congressman wants to get funded, can get funded, if he agrees to fund all the other congressmen's projects.

Like the Affordable Care act covers pre-existing conditions, and a lot of other things congressmen thought should be funded.


If congressmen want anything funded, they just have to agree to fund other congressmen's projects. So many non-essential things get funded, and the deficit goes up.

Maybe it is a good idea to shut down all non-essential government activities, periodically, and see what can be voted to start up again.

How to review entitlements?



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[Buddha C]

Man, the Congressmen are corrupt. I'm tired of people trying to cut the poor's throat with public programs. I mean, I get it:

In Europe (West, really I know East is a big ? to me lol)
The poor burden the majority of their own welfare costs (I mean, ESSENTIALLY not in literal form, transfer payments) much of it threw the VAT (which is 25% for non-essentials in some countries)
Therefore, the Rich with their money (less so there) in the representatives' pockets are less against it (publishing false reports, buying out national economic publication and not publishing anti-capitalist studies or severely denigrating those that do)

In America
The Poor, like the Rich (poor and middle class I mean by poor, especially when you consider the relativity of the top 1% that should be taxed more heavily MORALLY but because they'll flee like children it's simple impractical), DEMAND lower taxes. Because they have been so tricked by 60 years of propaganda and calumnies into believing the nonsense of conservative, even supply-driven economics. Because it's way the 'smart' people support and believe. But that's really just because they know expousing that beliefs AID and facilitates the further funnelling of more wealth to the top.

So you have the grid lock of the Poor not willing to shoulder their own burden and the RICH, with so much political power, unwilling to do so. But economically, who could blame them?

Personally, I love Abenomics.

I also love the fact that everyone is saying 'Abenomics is loosing its oomf', no **** sherlock there's contaminated nuclear waste all over NE Japan, that's going to effect the economy heavily across the board. What's the fancy word? A Negative Inter/externality?