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1 Decatur Deb  Thu, May 19, 2011 4:24:56pm

These bastards are signing up for a double-dip recession. Some are doing it because they're stupid, and some because they're smart.

2 SteelGHAZI  Thu, May 19, 2011 4:37:01pm

It's all about ruining things and pinning the blame of the President.

3 Randall Gross  Thu, May 19, 2011 4:45:01pm

Fine . Don't raise the ceiling, but stop all pay to congress and the senate first.

4 jc717  Thu, May 19, 2011 5:14:55pm

If these idiots actually go through with this, it will backfire on them big time.
I can't believe this is anything but red meat for the masses.
Still, I'll pick up some September puts in case they decide to go full retard.

5 simoom  Thu, May 19, 2011 5:29:27pm

Budget Committee Chairman, Rep. Paul Ryan is also on board:

[Link: www.cnbc.com...]

Holders of US government debt would be willing to miss payments "for a day or two or three or four" if it put the US in a stronger position to pay them later on, Rep. Paul Ryan told CNBC Tuesday.

"That's what I'm hearing from most people," said the Wisconsin Republican, chairman of the House Budget Committee. "What is more important is that you're putting the government in a materially better position to be able to pay their bonds later on."

6 elizajane  Thu, May 19, 2011 5:59:34pm

Fine. If you are the type who rejoices when your neighbor goes bankrupt, thinking "serves him right," fine. If you want to default on your own mortgage, because hey, you were in over your head and better just to survive the fallout and start over, fine. If that's the way you judge others, or the way you run your financial life, Mr. Toomey, fine.

JUST DON'T TAKE MY COUNTRY DOWN WITH YOU!!!

Republicans. Giving a whole new meaning to the concept of irresponsibility.

7 Decatur Deb  Thu, May 19, 2011 6:01:47pm

This is why we really needed President Trump--he knows how to handle a bankruptcy.

8 MarkAM  Thu, May 19, 2011 6:06:02pm

Reads kinda Leninist to me. . .

9 moderatelyradicalliberal  Thu, May 19, 2011 6:08:29pm

The GOP is the enraged, bitter and psychotic parent who kills their own children in order to punish the other parent for leaving them.

10 celticdragon  Thu, May 19, 2011 7:54:58pm

I wonder what will happen when that default also means that everybody on Social Security and disability simply doesn't get paid, and neither does the military.

That is what will happen as of August 2nd.

What happens if we crash into the debt ceiling? Nobody really knows, but it's not likely to be pretty. Inflows and outflows of cash to and from the Treasury jump around from day to day as bills are paid and revenues arrive. But at average fiscal 2011 rates, receipts cover only about 60% of expenditures. So if we hit the borrowing wall traveling at full speed, the U.S. government's total outlays—a complex amalgam that includes everything from Social Security benefits to soldiers' pay to interest on the national debt—will have to drop by about 40% immediately.

How in the world do you do that? No one really knows. If and when the time comes, Mr. Geithner and his boss will have to decide. But here's one prediction: Defaulting on the national debt will not be their first choice. After all, the statue of Alexander Hamilton at the Treasury entrance reminds Mr. Geithner every day of the importance of maintaining the nation's creditworthiness. Even if we hit the debt ceiling, maturing obligations still can be rolled over. And I'll bet he will bend every effort to make the interest payments, too. Unfortunately, however, when you're 40% short, not much can be ruled out.

For a while, the Treasury can temporize with creative accounting, shifting money from one pile to another, and the like. For example, contributions to government employees' pension funds can be delayed. But a 40% shortfall translates to over $4 billion a day, including Saturdays and Sundays. At that rate, you run through your bag of tricks pretty fast and must find ways to conserve serious amounts of cash.

The bills for Social Security, Medicare, Medicaid, national defense and interest on the debt comprise about two-thirds of all federal outlays. So they can't all be sacrosanct indefinitely. At some point, Mr. Geithner could wind up brooding over horrible questions like these: Do we stop issuing checks for Social Security benefits, or for soldiers' pay, or for interest payments to the Chinese government? Such agonizing choices are what make default imaginable.
Imaginable, but unlikely. Should it occur, the consequences could be severe. It might, for example, reignite the world financial crisis. Remember how rattled financial markets became last year when it looked like Greece might default? And that was just little Greece and the possibility of default. An actual default by the mightiest nation on Earth would be immeasurably more unsettling. Where, in such a case, would frightened investors run to hide?

The U.S. dollar would be among the first casualties. If hot money were to flee what was once its safest haven, the dollar would sink and U.S. interest rates would rise. The latter could lead us back into recession.

There would also be lasting costs to the U.S. government in the form of higher interest rates. For as long as anyone can remember, the full faith and credit of the United States has been as good as gold—no one has better credit. But if investors start to see default as part of U.S. political gamesmanship, they will demand compensation for this novel risk. How much? Again, no one can know. But even if it's as little as 10-20 basis points on the U.S. government's average borrowing cost, that's an additional $10 billion to $20 billion in interest expenses every year. Seems like an expensive way to score a political point.

11 EiMitch  Thu, May 19, 2011 8:15:10pm

So lemme get this straight: First, the right made a 2010 mid-term comeback by promising to make fiscal responsibility their primary focus. Then, they break the primary focus part of that promise with their atavistic war on gays and abortion. Now, they are openly talking of breaking the rest of that promise because delivering a death-blow to the economy is good for the economy?!

I hope the majority of us voters aren't as stupid as the teabaggers are betting we are. I hope its clear to each and every village idiot, and his dumbest dog, that republicans treat the economy as nothing but a trojan horse to get into power, and impose their social agenda.

Just in case some lurker (like I was recently) doesn't believe me: Try to find one (just one, any one) republican economic reform/proposal since the new term that doesn't have anything to do with the far right's social agenda. Something that neither contains their SA, nor has since been ditched or otherwise compromised in favor of their SA.

Try to find one. That's how you can see for yourself.

12 Romantic Heretic  Thu, May 19, 2011 9:43:35pm

Teh crazy! It burns!

Why do I get the feeling every one of these loons is buying gold and preparing to move to the Caymans?

13 shutdown  Thu, May 19, 2011 10:07:24pm

There will be an asset fire sale to raise cash - remember, the Fed has a gigantic balance sheet. Since desperate sellers are cheap sellers, the country will get hammered by the investors buying the securities. That will allow all the populists
to beat up Wall Street again later (Yay! Bonus!) and deplete the country of important reserves. Commodities sales will follow.

Why do crazy people hate America?

14 nines09  Fri, May 20, 2011 5:14:30am

Define "us". It's all making sense now. Fiscal responsibility. Job creation. Less government. Just like they promised. I must go tell myself this great news. I'll be right back.

15 suchislife  Fri, May 20, 2011 9:08:41am

re: #7 Decatur Deb

This is why we really needed President Trump--he knows how to handle a bankruptcy.

that was hilarious


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