Tag Archive for default on national debt

Consequences of Not Raising the Debt Ceiling

Hat tip to the National Journal

If Congress fails to raise the debt limit by August 2, the Treasury has only two options: It can default on its debt—meaning, stop paying its creditors around the world—or continue to pay creditors but halt any other federal spending above what the government collects in taxes. In effect, that would mean an overnight spending cut of about 40 percent.

Here are the choices:

1. Cut $125 Billion Per Month
2. Treasury Bonds Collapse
3. Cut Medicare and Social Security
4. Stock Market Plunge
5. Government Furloughs or Mass Layoffs
6. Sky-High Mortgage and Interest Rates

The Republicans would destroy the nation and millions of their fellow citizens to achieve their obsession with “spending cuts.” And they have the gall to consider themselves “patriots”!

Like everything else in their philosophy. It is upside down and inside out. These people are not patriots, they are traitors.

If Republicans refuse to raise the debt ceiling, will President Obama do the right thing and invoke the constitutional mandate that the nation “shall” pay its bills?