Lumpenproletariat
Veteran Member
- Joined
- May 9, 2014
- Messages
- 2,564
- Basic Beliefs
- ---- "Just the facts, ma'am, just the facts."
Why does it matter if the Debt Ceiling is not raised higher?
If it's not raised, it means there will be sacrifice now in order to avoid pain in the future.
In other words,
There shall be wailing and gnashing of teeth!
but that's all.
It does not mean any creditors would not be paid. All those holding bonds will be paid the same anyway. There will be no "default" other than reduction of payments on budget items, like workers getting pay cuts and government contracts being cut, or payments delayed to a later date (maybe by many years).
The cuts could even include reduction in Social Security payouts. The "Lock Box" is probably a myth. Nothing can be exempt if it's dependent on payment from the government. Except payment of interest or principle to creditors, who all will be paid according to schedule.
It would be smart for some of the tax increase to be that of gasoline taxes.
A smart way to cut programs would be just a straight across-the-board cut of everything, the meat ax, perhaps by 10%. Probably this would be enough to then pay for everything, along with some tax increase.
If it's not raised, it means there will be sacrifice now in order to avoid pain in the future.
In other words,
There shall be wailing and gnashing of teeth!
but that's all.
It does not mean any creditors would not be paid. All those holding bonds will be paid the same anyway. There will be no "default" other than reduction of payments on budget items, like workers getting pay cuts and government contracts being cut, or payments delayed to a later date (maybe by many years).
The cuts could even include reduction in Social Security payouts. The "Lock Box" is probably a myth. Nothing can be exempt if it's dependent on payment from the government. Except payment of interest or principle to creditors, who all will be paid according to schedule.
It would be smart for some of the tax increase to be that of gasoline taxes.
A smart way to cut programs would be just a straight across-the-board cut of everything, the meat ax, perhaps by 10%. Probably this would be enough to then pay for everything, along with some tax increase.