Yes it can when debt is > assets just like any entity. It's just that nobody will enforce it.
Joe Biden’s dire warning: a ‘meteor’ is headed to tank the US economy
- Thread starter themickey
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Yes it can when debt is > assets just like any entity. It's just that nobody will enforce it.
It certainly seems that way, doesn't it. Like the government was a person or corporation.
You have lots of company with this kind of thinking. You can at least take pleasure in that.
You might want to toodle on over to post#39 in the thread "The Risk of Rising Inflation" , this same "Economics Forum."
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Who woke him up? It's nap time!https://www.smh.com.au/world/north-...d-to-tank-the-us-economy-20211005-p58x7e.html
Joe Biden’s dire warning: a ‘meteor’ is headed to tank the US economy
By Matthew Knott October 5, 2021
Washington: President Joe Biden has warned that a “meteor” will crash into the US economy if Republicans continue to block efforts to raise the US debt ceiling, blasting his political opponents for deploying “hypocritical, dangerous and disgraceful” tactics.
The US federal government is set to run out of money on October 18, a development financial analysts warn would wipe out millions of jobs, crash the stock market and devastate American economic growth.
US President Joe Biden accused Republicans of playing “Russian roulette” with the country’s economy. Credit:Bloomberg
The government would also be unable to issue vital federal payments, such as Social Security cheques to senior citizens.
Republican Senate leader Mitch McConnell has argued that Democrats should act alone to lift the debt ceiling, but the Senate’s complicated filibuster rules mean they may not be able to do so before the federal government defaults on its debts – a deadline known as the “X date”.
In an unusually fiery speech at the White House, Biden said that Republicans were playing “Russian roulette with the US economy” by refusing to help Democrats raise the debt ceiling.
“I think, quite frankly, it’s hypocritical, dangerous, and disgraceful,” he said on Tuesday (AEDT). “Their obstruction and irresponsibility knows absolutely no bounds, especially as we’re clawing our way out of this pandemic.”
Biden continued: “A meteor is headed to crash into our economy. Democrats are willing to do all the work stopping it. Republicans just have to let us do our job. Just get out of the way. If you don’t want to help save the country, get out of the way so you don’t destroy it.”
Democratic Senate Leader Chuck Schumer said that Congress needed to send a bill on the debt ceiling to Biden’s desk by the end of the week to avoid unleashing financial calamity.
“We do not have the luxury of waiting until October 18, as it is our responsibility to reassure the world that the United States meets our obligations in a timely fashion and that the full faith and credit of the United States should never be in question,” Schumer wrote in a letter to his colleagues.
“The consequences of even approaching the X date could be disastrous for our economy and devastating to American families.”
In a letter to Biden, McConnell said there was a real risk the US government could “sleepwalk toward an avoidable catastrophe”.
“Republicans’ position is simple,” McConnell wrote. “We have no list of demands. For two and a half months, we have simply warned that since your party wishes to govern alone, it must handle the debt limit alone as well.”
Republican Senate Leader Mitch McConnell said it was up to Democrats to act alone to stop the US government defaulting on its debts. Credit:AP
In an analysis to investors last month, Moody’s Analytics chief economist Mark Zandi warned of “cataclysmic” consequences if the US debt limit is breached, comparing the resulting downturn to the financial crisis of 2008-2009.
“That means real GDP would decline almost 4 per cent peak to trough, nearly 6 million jobs would be lost, and the unemployment rate would surge back to close to 9 per cent,” Zandi warned.
“Stock prices would be cut almost in one-third at the worst of the selloff, wiping out $US15 trillion in household wealth.”
Actually, it seems like if nothing is done and the two parties cannot come to some sort of Middle Ground then potentially not doing anything might lead to a default. Money can of course always be printed but I do see how inaction can actually mean that important necessary steps aren't taken in time. It's like if you forget to pay your bill on time. You may have lots of money in your account but not using it to pay off your credit card does lead to consequences.
There should be an age limit for US presidents. 75 should be the maximum age one can run for the presidency. And for anybody above the age of 70, a test for Alzheimer's should be mandatory and a negative test result should be now one of the eligibility requirements.
Yes. Doing nothing will lead to, at first, sequestering, i.e., delayed payment of certain obligations. By the Time Senators stop getting paid they'll decide it's time to act like adults.
Money Can Not always be printed. Not legally. Congress must approve. If the Republicans filibuster to prevent the U.S. from paying its Bills, the Treasury will selectively pay on debts to avoid going over the artificial "debt" limit Congress has created.
The U.S. is debtless, but the amount of "outside" or "base" money it can create and spend into the economy is determined ultimately by Congress. We call the net total of new outside money we have created "the national debt", but of course it is not "real" debt. It is nothing like private sector debt which is very real.
First payments that should be deayed should be the salaries of the politicians. Preferably starting with those who cause the problem by refusing the vote to avoid the default.
They will print new notes to fill their pockets. Only regular people, especially those with fixed incomes will suffer.
Biden and the Democrats have a plan to help those in need, who, in turn, can then contribute. Trump's tiny brain cell could only manage to enrich the elite, and trash the US economy by borrowing when there was no need to. Unless dumb 'Murica gets educated, Putin wins in 2024 like he did in 2016. If you think GOP are anything other than a bunch of disgusting self serving con artists, and morons, please try to get enlightened. I will never again stay in the US, it has been trashed as Putin awakened and empowered the worst of your nation.