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To: SkyPilot

Surprised how you bought into the fear mongering. Odd, you are usually pretty steady. The only thing we have to fear is fear itself.


130 posted on 10/09/2013 10:08:53 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va
Not my intention - but people should be greatly, greatly concerned.

The simple fact of the matter is that although SS is mandatory spending, it is not guaranteed in the post-economic and political climate of a technical default. As many economists have stated this week, if the US Treasury has to issue a prioritization plan of payments (1. Interest on the Debt, 2. Pay Active Duty Troops, 3. EBT/Food Stamps, 4. Medicaid, etc) then all bets are off. You have Tea Party members going on Hannity saying that due to US monthly revenues of taxes that SS can be "paid in full" but that must be qualified by what Obama would and could do to poison the political well.

After watching him for years, I have zero doubts (none) that he would not consider giving recipients a percentage less of SS to emphasize that he didn't get his way, and to punish the older white voters who overwhelmingly collect Social Security. Only a portion of that base is "his people."

Further, if we do technically default, our interest payments on our current debt will skyrocket. They will. Paul Ryan said so yesterday, and his warning was serious and dire.

That leaves even a smaller slice for discretionary spending, and even mandatory programs are at great risk should we technically default. We will make our interest payments, I have no doubt, but as for the rest of government - all bets are off.

Finally, we will eventually lose our status as the world's reserve currency, and that will further accelerate the race to the pit.

I predict Washington will raise the debt ceiling.......eventually. They will either do it before great damage has been done to our economy, or after.

140 posted on 10/10/2013 3:35:00 AM PDT by SkyPilot
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