What's the worst that could happen if the US defaults?

Started 11 months ago | Discussions thread
Walking Dead
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Re: What's the worst that could happen if the US defaults?
In reply to LeRentier, 11 months ago

LeRentier wrote:

Walking Dead wrote:

While the republicans have been trying to poo-poo the possible effects of a US default, it is interesting and frightening what could happen-

http://www.nbcnews.com/business/whats-worst-could-happen-7-debt-default-doomsday-scenarios-8C11366851

In the meantime, business leaders are warning what could happen if the US defaults-

http://www.latimes.com/business/la-fi-bankers-debt-limit-20131003,0,3809242,full.story

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Defender of Truth, Justice, and the American Way

In the event the US defaults, which I hope will not happen, the value of the US dollar will tumble dramatically.
Treasury bonds will be snubbed by foreign financial institutions, unless the interest rate is raised and doubled, tripled or better.
Imports will become difficult because sellers will demand money, not monopoly money like the US dollar would become.
The US might have to deplete its stock of Gold to pay for its debts and that is a perillous thing for the future of the US at all levels.
Can you imagine a halt to international flights for US airlines, out of fear their planes will be seized to pay for outstanding kerosene bills ?
Can you imagine Obama getting stuck in a foreign country because someone has the brilliant idea to seize his Air Force One flying machine or limousine to recover some debt ? Aircraft does not have diplomatic status, neither does a presidential limousine.
"Charge it my account" could become an almost suicidal phrase to pronounce for any American travelling abroad, with the prospect of being detained until the bill is paid in local banknotes.
I believe a serious earthquake, with California sliding into the ocean, would be the nicer option.

If we go down, we're taking the rest of the world with us. Hahahahahahahaha

Seriously, the Tea Partiers aren't business savvy, so they don't look at the big picture. So, much for the Republicans being the party that businesses support. Just about every business and financial person has come out against a default.

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