Debt Ceiling: Question for Financial Wizards

[jdavis675]

The debt ceiling was not raised four times in the past thirty years until at least a full month after the deadline passed each time. Each of those times there was no default on debt obligations.

If the deadline passes and the ceiling is not raised, the ball is in the treasury departments court. Default would only occur if the treasury failed to restructure future spending priorities and focus the spending on oustanding debt. It would be about six months after the deadline passes before default would occur. At that point things would turn ugly.

 

[gsvol]

interest on treasuries is a fairly small part of the budget.

Didn't we pay something like $440,000,000,000
interest on debt last year???


How do you spell DEBT?

Damaging
Entitlements make
Barry
Tingle

Democratic
Entitlements are
Bolshevik
Treasures

Diminishing
Excess like a
Bonzai
Tree

Dohgressive
Excuses to
Boost
Taxes

DingleBarry's
Economics
Breeds
Trouble

Dumbocrat
Excrement
Begets
Taxation

Deluding
Everyone
But the
Tea Party

This cannot go on forever and it debt keeps
balooning the some day, sooner or later it will
pop and it isn't going to look cery nice.

 

[lawgator1]

The debt ceiling was not raised four times in the past thirty years until at least a full month after the deadline passed each time. Each of those times there was no default on debt obligations.

If the deadline passes and the ceiling is not raised, the ball is in the treasury departments court. Default would only occur if the treasury failed to restructure future spending priorities and focus the spending on oustanding debt. It would be about six months after the deadline passes before default would occur. At that point things would turn ugly.

Was there any degradation of the credit or bond ratings on those prior instances?

 

[droski]

Was there any degradation of the credit or bond ratings on those prior instances?

No. Nor will there be this time. Of course we have twice the debt to gdp as before.
Posted via VolNation Mobile

 

[jdavis675]

Was there any degradation of the credit or bond ratings on those prior instances?

No because there was not an actual default. I would say that passing the deadline just adds uncertainty into the market, but I'm not sure if it is possible for there to be any more uncertainty (but that is an entirely different matter).

 

[gsvol]

No. Nor will there be this time. Of course we have twice the debt to gdp as before.
Posted via VolNation Mobile

I thought Standard and Poor had already downgraded
US Treasury Bonds?

 

[droski]

I thought Standard and Poor had already downgraded
US Treasury Bonds?

they put it on rating watch negative. long ways away from an actual downgrade.