D day: Aug 2nd

[thallon]

Debt day,
the US has stalled on raising its debt ceiling,
it has till about aug 2 give or take a couple of weeks to vote to raise the ceiling even more,
currently i think its about 15 trillion dollars.

So what happens if they default?

Probably inflation,
and your yankee dollar will be worth about the same as a Zimbawe dollar,
okay probably won't come to that....
but since these are the last days,
i'll take a stab
and predict
they won't agree and the stock market will collapse all over again
all the stock markets will collapse,
there will be a run to get out of investments in america,
another GFC,
and unemployment will
blow out to 20 % and there will be big big trouble...

or maybe nothing will happen...

[Adopted Son]

The idea of a debt ceiling was a failsafe to avoid spending us into an irreversable situation. We anticipated the exact position we now find ourselves in and have come up against the brick wall we built to avoid total financial anarchy. So the answer is to break it down? Maybe. I doubt it. We may have painted ourselves into a corner and anything we do will trigger the feared event.