Who here, in preparation of a possible US gov default...

[The Freethinker]

... has withdrawn most if not all of their USDs from bank accounts?

 

[jkr]

soon







soon

 

[specsaregood]

I'm not concerned about the US defaulting by lack of printing money.

 

[jllundqu]

Why do people keep spreading this nonsense??

The US WILL NOT DEFAULT! We have 5 times the amount of revenue needed to service the debt and make the interest payments. The only way we default is if the treasury CHOOSES not to pay the interest debt service.

Debt Ceiling or no Debt Ceiling... as long as the US is taxing its people, we have more than enough revenue to service the debt and avoid default. Rand is screaming this at the top of his lungs on every news show! Why do people keep believing the lie that "The US WILL DEFAULT IF WE DON'T RAISE THE DEBT CEILING!"

It's BS. Basic math. Out debt service is about 30$ billion a month and our tax revenue is about +/- 200$ billion a month... Impossible to default.

 

[Acala]

The government won't default now because they don't have to and defaulting will bring the party to a halt. They are going to do whatever they need to do to keep the line of credit open for as long as possible. And the default will be via inflation, not by failure to write the check.

 

[oyarde]

... has withdrawn most if not all of their USDs from bank accounts?

I do that all of the time.

 

[Kelly.]

i pull my money out of the bank the day i am paid, regardless of what the government is doing or not doing

 

[Seraphim]

This correct when it comes to the bond obligations.

But the gov't would default on SOMETHING, be it welfarism, military contracts...this is included in the default scare mongering.

Why do people keep spreading this nonsense??

The US WILL NOT DEFAULT! We have 5 times the amount of revenue needed to service the debt and make the interest payments. The only way we default is if the treasury CHOOSES not to pay the interest debt service.

Debt Ceiling or no Debt Ceiling... as long as the US is taxing its people, we have more than enough revenue to service the debt and avoid default. Rand is screaming this at the top of his lungs on every news show! Why do people keep believing the lie that "The US WILL DEFAULT IF WE DON'T RAISE THE DEBT CEILING!"

It's BS. Basic math. Out debt service is about 30$ billion a month and our tax revenue is about +/- 200$ billion a month... Impossible to default.

 

[krugminator]

It looks like the Treasury market is pricing in almost certain default. Look at the panic. You can almost feel the fear. When will the freefall end?

http://stockcharts.com/h-sc/ui?s=tlt

 

[Zippyjuan]

Why do people keep spreading this nonsense??

The US WILL NOT DEFAULT! We have 5 times the amount of revenue needed to service the debt and make the interest payments. The only way we default is if the treasury CHOOSES not to pay the interest debt service.

Debt Ceiling or no Debt Ceiling... as long as the US is taxing its people, we have more than enough revenue to service the debt and avoid default. Rand is screaming this at the top of his lungs on every news show! Why do people keep believing the lie that "The US WILL DEFAULT IF WE DON'T RAISE THE DEBT CEILING!"

It's BS. Basic math. Out debt service is about 30$ billion a month and our tax revenue is about +/- 200$ billion a month... Impossible to default.

Interest on the debt will likely continue to be made but cash flow will force reductions in other bills like you paying the interest on your mortgage but then you can't pay for your electricity or food.

 

[Zippyjuan]

It looks like the Treasury market is pricing in almost certain default. Look at the panic. You can almost feel the fear. When will the freefall end?

http://stockcharts.com/h-sc/ui?s=tlt

That chart doesn't show any panic in the last month in the Treasury market.

 

[Tod]

Not yet, but I have been looking for signs that the time to pull out of banks is arriving. It doesn't need to be default. It could be any big crisis that would provide the excuse they are looking for to seize savings.

 

[krugminator]

That chart doesn't show any panic in the last month in the Treasury market.

Did I sound serious in that post?

 

[Cap]

Yeah, let's have a bail-in party.

 

[heavenlyboy34]

Why do people keep spreading this nonsense??

The US WILL NOT DEFAULT! We have 5 times the amount of revenue needed to service the debt and make the interest payments. The only way we default is if the treasury CHOOSES not to pay the interest debt service.

Debt Ceiling or no Debt Ceiling... as long as the US is taxing its people, we have more than enough revenue to service the debt and avoid default. Rand is screaming this at the top of his lungs on every news show! Why do people keep believing the lie that "The US WILL DEFAULT IF WE DON'T RAISE THE DEBT CEILING!"

It's BS. Basic math. Out debt service is about 30$ billion a month and our tax revenue is about +/- 200$ billion a month... Impossible to default.

Good point. But printing money is a type of default. The default is already here. The question is how bad things are going to get from here.

 

[jllundqu]

Good point. But printing money is a type of default. The default is already here. The question is how bad things are going to get from here.

I'm referring to a literal default (as opposed to default by inflation etc). If we can service the debt (which we can) then there is no LITERAL default, right?

 

[Zippyjuan]

Defalut means not paying bills. If the debt ceiling isn't raised, at least some bills won't get paid. Some still will. If I don't pay my mortgage I am in default even if I still pay the credit card bill.

 

[heavenlyboy34]

I'm referring to a literal default (as opposed to default by inflation etc). If we can service the debt (which we can) then there is no LITERAL default, right?

As zippy mentioned^^ it would be a literal (partial) default.

 

[enoch150]

Defalut means not paying bills. If the debt ceiling isn't raised, at least some bills won't get paid. Some still will. If I don't pay my mortgage I am in default even if I still pay the credit card bill.

You have an obligation to pay your mortgage and buying food and utilities is a necessity. You do not have an obligation, nor is it a necessity, to give to charity or go to the movies. Congress does not have an obligation to buy mechanical bulls, pay welfare, molest people at airports, give foreign aid, or police the world.

 

[Zippyjuan]

If you do want to pay bills with cash only and keep interest on the debt, DOD spending, and Medicare/ Medicaid plus Social Security payments flowing (don't want to piss off voters), you basically have to cut everything else. Everything- by 90% or more. That means you make the car payment, the mortgage, and the credit card bill but give up on everything else including food and electricity. All those "luxury items" don't save you enough money.