Quote:
Originally Posted by Hank_Heartland
Now who's being overly simple...oh we default and life just carry on...I'm sure the world economy would appreciate that  |
It's not complex at all... we wouldn't really be in default. If we stopped spending, our income is vastly higher than our real costs, like payments on interest, basic services, etc. The gov shutting down does not mean the fed reserve and banks and american business stops, not even the full gov stops...
Even if we went in default, we still have 10x the money vs cost ratio than the next country and that amount over what is needed overall. It's impossible for us to be in default... we would need to stop making money first.
Either way, based on the 14th Amendment, Obama isn't allowed to let us go into default. So either this is total media hype spin and we will never really go into default, or both sides are willing to let Obama set this anyway he likes, without the ability to stop him. Which I find, very unlikely.