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View Diary: Idiot Teabag FL Congressman: Default will “bring stability to the world markets”! (94 comments)

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  •  Re (0+ / 0-)
    They may be different things, but without raising the debt ceiling so that we can borrow more money to pay off those T-bills, means we will be in default, which has never happened before.  Happy now?
    The US takes in enough in taxes to cover payouts of all outstanding T bills. Remember that with the debt limit, you can still issue new T bills. You just need to retire them at the same rate, or faster.

    It's "just" a question of what gets cut to make it happen.

    (-5.50,-6.67): Left Libertarian
    Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

    by Sparhawk on Mon Oct 07, 2013 at 01:52:22 AM PDT

    [ Parent ]

    •  So Cannibalize Government (1+ / 0-)
      Recommended by:
      SemDem

      It's undefined whether prioritizing debt payments over other spending is legal, and whether the government has mechanisms to do so. Even if it did, forcing the government to do so would cause political chaos as Republicans monkeywrenched the prioritization.

      You are technically correct. But since default is the (ahem) default outcome, and its immediate effects on politics and economies are effectively the same, default is the term to use in the messaging. Republican strategy counts on the specifics being too detailed for anyone but DC lawyers to understand on a few listens, and so messaging must use the default scenario in mass communications.

      If you want to discuss remedies to the prioritization scenario, then its details matter. Otherwise they're counterproductive.

      "When the going gets weird, the weird turn pro." - HST

      by DocGonzo on Mon Oct 07, 2013 at 06:41:55 AM PDT

      [ Parent ]

    •  Sigh... (0+ / 0-)

      Yeah, sure and bring on a constitutional crisis or impeachment!  Spending would have to be cut—who decides?  Not to mention the other knowable effects, another ratings downgrade, even bigger losses in GDP, more people unemployed, further loss of confidence by the rest of the world.   Oh, and let's not forget impeachment!  You think they won't try it with the catch-22 they've want to put Obama in?

      Yeah, there's no problem, except that real people get hurt, millions of them and it very well CAN spin out of control.  

      You are technically correct, but it still makes no difference because it is unchartered territory.  Splitting hairs over it doesn't change anything.  If the ceiling isn't raised we simply don't know what will happen.  it's irresponsible, dangerous and yes, not a stabilizing choice.

      The priest said, "Today's sermon is called 'Liars', but first I have a question. How many of you have read Chapter 66 in Matthew?" Nearly every hand went up. "You're just the group I need to speak to," the priest said. "There's no such chapter."

      by Back In Blue on Mon Oct 07, 2013 at 07:27:18 AM PDT

      [ Parent ]

    •  Not sure if (0+ / 0-)

      eating our seedcorn is an appropriate way to finance a government, especially one that purports to be in charge of the world's bestest ever country in the history of the universe.

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