CAN THE USA AFFORD TO LOOSE ITS AAA RATING ?

[S_R 148]

... It Only means That Republicans & Democrats Value the Country more Than Their Ego!

[^_^ 5,021]

We can withstand a downgrade. Outright default will be many orders of magnitude worse.

[S_R 148]

We can withstand a downgrade. Outright default will be many orders of magnitude worse.

I hope the day the US defaults on its debts never comes to pass...

because it could be big trouble for anyone who needs a car, needs a home or student loan, uses a credit card, has a retirement savings account or wants to travel abroad.

[luckytxn 2,263]

It should be downgraded. I will take even a default if it meant that they will finally stop spending way more than we bring in. I am tired of deficits. Oh yeah and soaking the rich will not bring the revenue to bring us to a balanced budget. Stopping spending will do so.

[S_R 148]

It should be downgraded. I will take even a default if it meant that they will finally stop spending way more than we bring in. I am tired of deficits. Oh yeah and soaking the rich will not bring the revenue to bring us to a balanced budget. Stopping spending will do so.

The U.S. government has 80 million bills due in August, and, no matter what choices are made, about 40% to 45% of them won't get paid unless more borrowing is authorized.

"When you take away all that spending, it will have a huge effect on the broader economy.

And if the U.S. government doesn't pay back the $500 billion in debts coming due in August -- or at least pay the $29 billion in interest on those loans -- that default is going to cause havoc in the economy's credit sector, which will eventually reach down to anyone who needs to borrow money or uses a credit card.

How much interest is charged on a loan is determined by an assessment of the chances of the money being repaid. Lending money to the U.S. government, by buying Treasury bonds, has been rated as one of most risk-free investments available {until now atleast}, which means the government pays a small amount of interest on the money borrowed.

[scandal 951]

The U.S. government has 80 million bills due in August, and, no matter what choices are made, about 40% to 45% of them won't get paid unless more borrowing is authorized.

"When you take away all that spending, it will have a huge effect on the broader economy.

And if the U.S. government doesn't pay back the $500 billion in debts coming due in August -- or at least pay the $29 billion in interest on those loans -- that default is going to cause havoc in the economy's credit sector, which will eventually reach down to anyone who needs to borrow money or uses a credit card.

How much interest is charged on a loan is determined by an assessment of the chances of the money being repaid. Lending money to the U.S. government, by buying Treasury bonds, has been rated as one of most risk-free investments available {until now atleast}, which means the government pays a small amount of interest on the money borrowed.

You are right. But you won't convince him of anything.

He wants a default, prays for it and rejoices in the thought of it.

He thinks the way to rebuild America is to burn it down to the ground, level it, and then expect that something new and better will come out of that blackened crater.

I'm not really into arson, which is effectively what an intentional default is.

[Trumplestiltskin 5,791]

It should be downgraded. I will take even a default if it meant that they will finally stop spending way more than we bring in. I am tired of deficits. Oh yeah and soaking the rich will not bring the revenue to bring us to a balanced budget. Stopping spending will do so.

Who wishes themselves to go bankrupt? That's bizarre.

The us economy is linked to every other economy, many other countries use the dollar as reserve currency. If the us can't pay its debts, the world economy will crash into depression. Those are pretty high stakes.

You are right. But you won't convince him of anything.

He wants a default, prays for it and rejoices in the thought of it.

He thinks the way to rebuild America is to burn it down to the ground, level it, and then expect that something new and better will come out of that blackened crater.

I'm not really into arson, which is effectively what an intentional default is.

It is. It's more irresponsible than the people who got the us into that position in the first place.

[S_R 148]

Who wishes themselves to go bankrupt? That's bizarre.

The us economy is linked to every other economy, many other countries use the dollar as reserve currency. If the us can't pay its debts, the world economy will crash into depression. Those are pretty high stakes.

It is. It's more irresponsible than the people who got the us into that position in the first place.

Treasury bonds provide the floor for other lending -- car and home loans, credit card debt and student loans, for instance. And because those loans are seen as more risky, the interest charged on them is higher and could rise faster than an increase in the rate on U.S. securities.

How much those interest rates might go up would depend to a large extent on "perception"

[luckytxn 2,263]

The U.S. government has 80 million bills due in August, and, no matter what choices are made, about 40% to 45% of them won't get paid unless more borrowing is authorized.

"When you take away all that spending, it will have a huge effect on the broader economy.

And if the U.S. government doesn't pay back the $500 billion in debts coming due in August -- or at least pay the $29 billion in interest on those loans -- that default is going to cause havoc in the economy's credit sector, which will eventually reach down to anyone who needs to borrow money or uses a credit card.

How much interest is charged on a loan is determined by an assessment of the chances of the money being repaid. Lending money to the U.S. government, by buying Treasury bonds, has been rated as one of most risk-free investments available {until now atleast}, which means the government pays a small amount of interest on the money borrowed.

Cry me a river.

[scandal 951]

Cry me a river.

What, no 'Socialist' retort? You're slipping.

[luckytxn 2,263]

What, no 'Socialist' retort? You're slipping.

Cry baby.

[Trumplestiltskin 5,791]

You'll be a crybaby too when it costs you $1000 to buy a loaf of bread

[scandal 951]

Cry baby.

I am crying. I demand you label me a Socialist. right. now. :crying:

[luckytxn 2,263]

I am crying. I demand you label me a Socialist. right. now. :crying:

Apparently.