Face it, compared to the entire debt, this "fiscal cliff" is a little mole-hill. 1.6 trillion? bah.
But if they can't find a way to agree to ANYTHING here, then holders of US treasuries and other instruments are going to have to take a SERIOUS look over if they will EVER get paid for the securities instruments.
They're going to come to the realization, NO, and a panic could set in.
Low chance maybe, but something that needs to be considered.
what will happen is private companies will go out of business.
if they make something profitable and popular, the govt will buy the company, take it over from bankruptcy or buy at pennies on the inflated dollr, and make it union shop and govt workers and attempt to use profits so they can keep spending.
will fail b/c the product under govt production will not be as good and sales will drop significantly. overhead costs will skyrocket as well as a govt business.
>>But if they can’t find a way to agree to ANYTHING here, then holders of US treasuries and other instruments are going to have to take a SERIOUS look over if they will EVER get paid for the securities instruments.
>>They’re going to come to the realization, NO, and a panic could set in.
Which is exactly why Rats are discussing seizing all the 401k’s and IRA’s and forcibly converting them to treasuries.
The taxpayers and the Federal Reserve will always be the buyers of last resort to fund the debt.