Why the US Won't Default Even Without a Deal

Damocles

Damocles

Accedo!
Staff member
The Federal government is scheduled to take in a bit over $170 Billion in Revenues in August, to simply pay the interest on the debt takes $35 Billion.

The government can pay the interest, avoiding default, then make some hard choices on what they were "supposed" to spend as to what can wait a bit.

The reality is the idea that we are going to "default" on our debt is a fabrication. It isn't going to happen even if there is zero compromise on either side and no "deal" is cut.
 
SmarterThanYou said:
but, if the dems can't spend that 35 billion, millions upon millions of kids and old people will starve or die of some horrible disease.
Click to expand...

Only if they choose to delay the "feed the millions of kids" portion of the budget rather than say the agricultural money we give to railways to not grow crops on the land next to their railroad tracks, maybe some of the Ethanol subsidies can wait a day or two without starving a kid.
 
I notice that the noted economist Dalai Damocles has offered no sources for his comforting assertion.
 
(\(\(\/)/)/) said:
I notice that the noted economist Dalai Damocles has offered no sources for his comforting assertion.
Click to expand...

You can read the CBO reports as well as any other to find both the revenue projection as well as the interest, however it is an opinion piece based on knowledge it is an original work it would be its own reference.

http://www.cbo.gov/

You have to be ultimately stupid to believe what the fear mongering democrats are trying to portray. The US will not default even if no deal is made, unless the President chooses to default by spending money he knows that he shouldn't.
 
Damocles said:
You can read the CBO reports as well as any other to find both the revenue projection as well as the interest, however it is an opinion piece based on knowledge it is an original work it would be its own reference. http://www.cbo.gov/ You have to be ultimately stupid to believe what the fear mongering democrats are trying to portray. The US will not default even if no deal is made, unless the President chooses to default.
Click to expand...



When I checked, I saw the CBO Director's warning that if any of Treasury's obligations are missed, creditors are going to likely raise rates, at a minimum.




http://tpmdc.talkingpointsmemo.com/...elmendorf-debt-default-a-dangerous-gamble.php




Against that, I have the opinion of the world-renowned expert on economics Dr. Dalai Damocles.


How could I - or the myriad investors and financial professional the world over - have been so blind?


Thank you for enlightening me, Dalai Damocles.
 
The best thing that can happen is for the debt ceiling to remain where it is and the feds forced to deal with an austerity budget. The Republican House leadership are wimps for offering a larger budget than the predicted revenue. They have the Democrats in a box and they need to take advantage of the situation.
 
Here, check this out. Since you asked, and I knew that somebody else would write something along the same lines, I just typed 'why the us won't default on debt even if there is no deal' (without the ' marks) into google and got several articles saying much the same thing.

This one has a nice soothing chart for you: http://www.economist.com/blogs/freeexchange/2011/01/americas_debt

GregChart550.jpg


That should help. We actually will take in 185 Billion, while the interest is at 37 Billion. But the premise is the same. As I said I was going off simple averages and knowledge, he created a chart that even you will be able to read...

We'd simply have to pay the service on the debt (the interest, that's all we've paid since 1962 so why change now?) then shift the outlays so that 37 Billion is delayed or dropped. Just because somebody told you that you can spend some money doesn't mean you have to spend all of it.
 
(\(\(\/)/)/) said:
When I checked, I saw the CBO Director's warning that if any of Treasury's obligations are missed, creditors are going to likely raise rates, at a minimum.




http://tpmdc.talkingpointsmemo.com/...elmendorf-debt-default-a-dangerous-gamble.php




Against that, I have the opinion of the world-renowned expert on economics Dr. Dalai Damocles.


How could I - or the myriad investors and financial professional the world over - have been so blind?


Thank you for enlightening me, Dalai Damocles.
Click to expand...

Which is simple fear mongering. To service the debt they would have to push money into different pools, but there is zero chance of default even without a deal. You're a sheep, following whatever the left tells you. You should get in the closet, I hear that tornadoes can break your windows and hurt you. It shouldn't matter to you that there is no storm, all I have to do is tell you that the windows could break and you'll huddle away...
 
I need no evidence.

Your opinion has convinced me, and will doubtless calm the markets worldwide and silence those dastardly doubting Democrats.

The reputation of the Dalai Damocles for expertise in matters of international finance and his penchant for truth-telling in all circumstances is so well known, who could doubt your call?
 
(\(\(\/)/)/) said:
I need no evidence.

Your opinion has convinced me, and will doubtless calm the markets worldwide and silence those dastardly doubting Democrats.

The reputation of the Dalai Damocles for expertise in matters of international finance and his penchant for truth-telling in all circumstances is so well known, who could doubt your call?
Click to expand...

Translation:

I'm going to ignore the numbers and try to attack the messenger, this will make me look smart to people who are frightened by silly fear mongering.

The last time we went through exactly this same thing was May... I wonder why we didn't default then....
 
Damocles said:
Translation: I'm going to ignore the numbers and try to attack the messenger, this will make me look smart to people who are frightened by silly fear mongering. The last time we went through exactly this same thing was May... I wonder why we didn't default then....
Click to expand...



You wound me, Dalai Damocles. Have you so little faith in your powers of persuasion?
 
We can pay the interest on our debt, or continue to support Democrat pet projects and prop up public employee unions.
 
Damocles said:
The Federal government is scheduled to take in a bit over $170 Billion in Revenues in August, to simply pay the interest on the debt takes $35 Billion.

The government can pay the interest, avoiding default, then make some hard choices on what they were "supposed" to spend as to what can wait a bit.

The reality is the idea that we are going to "default" on our debt is a fabrication. It isn't going to happen even if there is zero compromise on either side and no "deal" is cut.
Click to expand...

I agree.

The reps have an opportunity here, but I bet they blow it.
 
Last edited:
tom prendergast said:
I wonder if you are aware that the last of the PIIGS, namely Italy is very close to defaulting?

http://economictimes.indiatimes.com...lls-emergency-meeting/articleshow/9175803.cms
Click to expand...

Which changes absolutely nothing about my post or add to the subject of this thread at all. This is a foolish non-starter and has no bearing whatsoever on the thread. Although it would be a good thread of its own where we were talking about Italy with different numbers, different taxation, and an economy built on the policies that the President propounds.
 
You must log in or register to reply here.
Back
Top