How you can prepare for a debt default

Channel 3000 News/CNN ^ | May 23, 2023 | CNN Staff

[Diana in Wisconsin]

Treasury Secretary Janet Yellen reaffirmed June 1 as the hard deadline to raise the debt ceiling on Monday, saying she expects the United States will be unable to pay all of its bills in a little over a week.

If an agreement isn’t reached to prevent the United States from defaulting on its debt, the country could descend into economic disarray, affecting millions of Americans from investors to Social Security beneficiaries.

Nevertheless, consumers can take steps to safeguard their finances from some of the effects of the crisis.

There isn’t much precedent on what to do in case of a default, since it’s never happened before. If the government doesn’t raise the ceiling, the United States won’t automatically go into default. The Treasury Department has enough to cover some obligations, but it’s uncertain what protocol it would adopt to handle payments.

Here’s how you can prepare for a potential debt default.

Military families should keep extra cash

Expect volatility in bonds

Stick with high-quality investments

Make necessary adjustments to your 401(k)

Don’t over invest, despite temptation

Prepare for Social Security delays

[Diana in Wisconsin]

CNN - pulling out all the stops for a full-blown panic - which is NOT Brandon's fault, or course. *SMIRK*

"There isn’t much precedent on what to do in case of a default, since it’s never happened before."

Um...YES it has!

[skeeter]

‘Rat media fear porn.

[1Old Pro]

To CNN Staff: there will not be a default, stop the fear mongering.

[Carriage Hill]

Plenty of food, water, TP, ammo, cash.

[Melinda in TN]

My P&G stock dropped over $4 yesterday and it’s already down $1 a share today. This has happened before, so I just wait it out. That’s the only investment I have.

I hate Democrats and politicians in general.

[CurlyDave]

Basic advice is: “Have more money”.

Thank you Captain Obvious.

[Texas resident]

Prepare for Social Security delays...

If we hit a default, expect the swamp to stop payments on the most visible and political items. Their media will lose their minds and the dem voters will be up in arms.

[1Old Pro]

Since the day Biden took office in January of 2021, the DOW has performed horribly.

[avital2]

if they’re near the end,hammering out details and legislative language i wonder if they can’t vote on a short extension to get over the hump.

[Diana in Wisconsin]

“Military Members and Senior Citizens Hurt Worst!”

Hey! That’s me! ;)

Just this time around, though. Then it’s back to “Women and Children Hurt Worst!” for the next crisis Government manufactures and inflicts upon us. ;)

[skeeter]

As corrupt as the entire federal government is today, it would not surprise if the SS Administration didn’t cooperate with the ‘Rats by purposely delaying the payments.

[chief lee runamok]

In the real world, social security is self-supporting, not a program
that relies on loans from foreign countries.

Naturally, bumblin' biden's puppetmasters having full control over
the nation's proletariats, do as they will.

[dynachrome]

Delay the EBT card fill ups for too long and the cities will burn.

[Melinda in TN]

The good thing is that P&G stock goes up and down a lot, but it always recovers better than other stocks. They pay good dividends too that I reinvest.

I try not to think how good it would be with Trump in office.

[ridesthemiles]

Biden & Dems want extension to PAST the 2024 election.

[SunkenCiv]

• BREAKING: Biden Caves, He and Speaker McCarthy List Points of Agreement, Take Possibility of Default off the Table [05/22/2023]
• White House threatens to veto GOP measure blocking student loan debt relief program [05/22/2023]
• Wasting Away Again In Bidenville! Core Inflation Rate UP 244% Under Biden, Food UP 46%, Gasoline Prices UP 60%, Rental Growth UP 268% As Biden/McCarthy Negotiate [05/23/2023]
• Shocking footage shows Chicago police station lobby filled with MATTRESSES and migrants as city struggles to house around 200 new border crossers arriving each day [05/23/2023]
• Can somebody natural born, but was a foreign leader, ever become President? [05/23/2023]

  ---

• Belgium's De Croo slams degrowth, joins call for a regulatory break [05/23/2023]
• Europe wants its semiconductor groove back [05/23/2023]

  ---

• external link: Apple Clashes With EU in Fight Over $14 Billion Tax Bill: EU watchdog seeks to overturn defeat in Irish tax case | Stephanie Bodoni | May 23, 2023 [Bloomberg]

  Apple Inc. and Ireland hit back at the European Union's antitrust watchdog in a €13 billion ($14 billion) court clash that may help to define the legacy of Competition Commissioner Margrethe Vestager. At an appeal hearing at the EU's Court of Justice, Apple said Vestager's team made legal errors when they concluded the iPhone maker was given vast amounts of unfair tax aid from Ireland and issued an order to repay the money.

[jeffersondem]

“If we hit a default, expect the swamp to stop payments on the most visible and political items. Their media will lose their minds and the dem voters will be up in arms.”

First thing the federal government will do is close the Washington Monument and the WWII Monument.

School children will be sent home crying, all captured on national television.

[Leaning Right]

> If we hit a default, expect the swamp to stop payments on the most visible and political items. <

Yep. There will still be money for overseas adventures, and for studies of the snail darter. But maybe not so much for senior citizens.

[1Old Pro]

P&G is a good “defensive” stock during these Biden recessionary times.

[paint_your_wagon]

Will a default be as bad as Y2K?