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Debt Ceiling Isn't a Broad Default - Hype and Lying at Mass Scale (Public Board)

by Cornpop Sutton ⌂, A bad bad dude who makes good shine., Saturday, May 27, 2023, 13:26 (306 days ago)
edited by Cornpop Sutton, Saturday, May 27, 2023, 13:41

Basically, the failure to *raise* the debt ceiling of the US debt means just one thing:

The government's spending will be CAPPED at the present ceiling level. New spending cannot happen. The actual outcome in terms of spending would be like some person on a fixed income. They can't take the vacation to the Bahamas this season because they need to pay the car loan first.

Existing debt, by constitutional law, will need to be serviced first. That is not default.

The real outcome is that NEW programs may be cut or shrunk or not funded. Older programs will probably be funded in whole, Medicare for instance.

There will NOT be a broad default on Treasury notes. The US debt rating will not go to junk status. We will not become Venezuela. The Treasure will still receive $4T in revenue for 2023.

In fact, not raising the debt ceiling should be desired by any reasonable non idiot because it would force government program shrinkage and would constrain new spending.

There is enough revenue to take care of real needs plus service existing debt. This video breaks down the issue in a way I already understood and he's right IMO:

https://youtu.be/4JpJM-hHtRE

Of course congress will approve raising the debt ceiling and it will be fiat currency expansion as usual.

I think Kevin McCarthy should hold out for adding squirrels to the Health Care Marketplace as a new covered class. It would be random enough to clog things up for a long time.

If no agreement is made, IMO you should buy equities on any major dips. The normies will be screaming reeee until things stabilize.

A dip won't last long as the real truth comes out. That may be an opportunity to profit from this.


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