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The republican/teabag/Stupid Party in Congress is known for delusional "thinking", but NOWHERE is this as evident as in their views of the impending debt crisis.

They seem to believe at least publicly that they can just not pay for the Federal Government to do it's regular business, and this will somehow not be a bad thing or even  be a BETTER thing than passing the debt limit increase. They are incredibly wrong on this, and more dangerously, they are persuading others that they know what they are talking about...They do not.

Let me state now that I have little doubt the GOP will refuse to fund the debt ceiling increase on October 17th, and will refuse to budge on the shutdown of the Federal Government either. They hate the government and wanted to kill it and may partly succeed.

I am hearing only a few dire consequences of not funding the debt: US international credit will without doubt be downgraded, and this time more severely than in the Newt government shutdown. We will be refused credit to do business in the world, we will default on bills owed to US businesses, we will NOT be able to fund government programs...Social Security payments will cease after November 1st if the debt limit increase is not approved.

We will also crash our recovering economy...EVERYONE who has investments, retirement funds, etc will suffer for this, even thought there is as yet little panic in the market...

http://dealbook.nytimes.com/...

I am an old retired guy with some money in a mutual fund to help pay my bills...I am in the process of converting it all to cash, and have been for a week..I will be out of stocks by next week, and have the money in a local credit union's money market fund...no income, but safety.

The media seems to think "fairness" means they have to give all ideas equal merit, even the most insane teabagger fantasy...too many people seem to think the GOPers are just ordinary people with different opinions rather than raving looneys.

If you have investments, at least consider cashing out or seeking a safer alternative...it you are getting any government payment, you may not be getting any more after November 1st...including disability, social security and even medicare and medicaid. I don't know how to prepare for this. I don't know any way to avoid this.
I really HOPE I am wrong, but I am afraid I am right.

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Comment Preferences

  •  Tip Jar (5+ / 0-)

    What doesn't kill me had better start running.

    by old mark on Thu Oct 10, 2013 at 04:22:23 AM PDT

  •  I've made it a personal point for several years... (1+ / 0-)
    Recommended by:
    old mark

    not to publish any real details of my own personal circumstances.  However, I know folks who have been furloughed (they're receiving one week's worth of pay today or tomorrow), and many retirees and/or veterans who absolutely rely on government payments on the 30th of each month.

    As things stand now, by the 30th of October, the country will be two weeks into default.  Government workers who are still on the job will not have been paid, and to boot, not eligible for unemployment benefits.  Those who are furloughed will have at least started receiving meager benefits.  Retirees, veterans, SSI recipients and others will not receive their monthly sitpends.

    If this scenario breaks (and it's looking more likely every day), IMHO, you're making the right move now by quietly moving your money into safe harbor.

    UID: 14791 Join Date: 7/7/2004 Status: Lifetime member Mojo: nearly infinite Any questions?

    by Richard Cranium on Thu Oct 10, 2013 at 04:39:52 AM PDT

  •  FWIW a Moody's guy says (0+ / 0-)

    our credit will not be affected

    We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact. The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasury’s extraordinary measures to raise funds) and a default.
    http://blogs.barrons.com/...

    looks like we find out in about a week...

  •  The "crisis" is that we have people who refuse to (0+ / 0-)

    meet their obligations in charge of the country's obligations.

    How did the wolf trick Little Red Riding Hood? He disguised himself as her grandmother.

    How did the Cons get into Congress? They disguised themselves as patriots.

    Since a crisis is a sudden thing, the disfunctional House is not really a crisis situation and cleaning up after them will take some time. Let's just hope the American electorate doesn't have a short-term memory problem, like it did in 2010.

  •  They're Dog Whistling Investors (1+ / 0-)
    Recommended by:
    old mark

    when they talk about the consequences not being so dire. They're making it plain there will be default.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Thu Oct 10, 2013 at 05:54:23 AM PDT

  •  I see talks, meetings, etc... (0+ / 0-)

    And the Dow went crazy again today...but I think this is really very foolish. I have moved most of my money out safely...I am insignificant to the market, but this is all I will have for how ever long I will be here, and I will err on the side of caution. I am very happy with how my first attempt at investing went but I am looking for stability now...

    Again I hope I am wrong, but I still do not see any sign of that.

    What doesn't kill me had better start running.

    by old mark on Thu Oct 10, 2013 at 03:12:06 PM PDT

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