If America defaults, our credit rating will automatically drop to a ‘D’, causing the stock market to go into meltdown, which will lead to massive lay-offs in the private sector. The military won’t get paid, social security won’t go out, federal workers will be furloughed, and many many people will be out of a job. Hence, people won’t be buying jack squat, leading businesses such as grocery stores to slump. The economy will continue to slump lower and lower, leading to more and more job loss.
Consider that, next time you shout “Shut it down.”
and borrowing more money prevents this how? Lets get the shyt in the fan now and get it over with. we’d becoming out of this by now if they had allowed it to happen before tarp.
Rather than slamming on the brakes, we need to slow down gradually. I think the one cent solution is a good idea - - cut enough to be balanced in about 6-10 years.