Debt

[AdrianCC100]

What will happen if the USA hits the debt ceiling? Will that make finding a job even worse?

[gherkin]

If the US hits the debt ceiling, the following are likely to happen:
The cost of loans go up
The credit rating of the US goes down
Misc government related issues occur that in the end cost you services as the government is forced to cut spending because they cannot get more money
Inflation ~may~ go up

As a result of the first two things, business tanks (loans cost more to get, less investment) and thus jobs become scarcer and job creation stops.
The second two will destroy some businesses due to missing services (government stops paying for social services for the homeless or whatnot, thus the business that provide the services in return for government cash go tits up) and increased costs/decreased revenue.

So yes, it will make finding work harder.

[Badpaladin]

What will happen if the USA hits the debt ceiling? Will that make finding a job even worse?

A number as (apparently) arbitrary as the debt ceiling will just be lifted up higher if need be. My take on it?

Things aren't going to get any better. I have no idea how to fix this economy at this point, but one thing is for sure -- the people we have in office right now aren't going to do it. Not only are they incapable of doing it, but I also don't think they have any incentive either.

[Iron Dome]

This will mean utter catastrophe for the U.S.
Many insurance companies, such as Medicare, will be destroyed. Tons of people will be laid off their jobs. Interest rates will go up. America will be screwed

BUT WHYYYYYYYYYYYYY???
As i see it, because 2 people can't agree on a solution JUST BECAUSE they're from 2 different parties.

I DON'T GIVE A **** WHAT PARTY YOU'RE FROM. EVERY AMERICAN JUST WANTS YOU TO COME UP WITH A SOLUTION BEFORE WE'RE SCREWED.

[Deleted]

I'd say an increase in people emigrating from the US The news keeps reporting about all sorts of stuff on how bad the economy is in Denmark, then I read stuff about USA and Greece, oh lord.

Edit: Just something that someone might be able to explain to me because I don't have a degree in economics and such, so I'm clueless - But where is the money that all countries seem to be missing? It's not like they burned up or got shredded. The whole crisis started with some banks loaning out money to customers who couldn't pay said money back no? Well that money must be somewhere, really, I am clueless, so please enlighten me if you can, with basic terms so I don't get thrown off.

[Iron Dome]

I'd say an increase in people emigrating from the US The news keeps reporting about all sorts of stuff on how bad the economy is in Denmark, then I read stuff about USA and Greece, oh lord.

Edit: Just something that someone might be able to explain to me because I don't have a degree in economics and such, so I'm clueless - But where is the money that all countries seem to be missing? It's not like they burned up or got shredded. The whole crisis started with some banks loaning out money to customers who couldn't pay said money back no? Well that money must be somewhere, really, I am clueless, so please enlighten me if you can, with basic terms so I don't get thrown off.

It's not that money disappeared. It's that, at least in America's case, America imported MUCH MORE than they exported. Thus, they were in debt.
I also blame i on credit cards somewhat. American shoppers think that they can spend all they want and just use their credit card. They get their bill at the end of the month - $20,000!!!! BUT they don't have the $ to pay that, most of em.

[Lefeng]

I fail to see how raising the debt ceiling will break the economy when we've done it something like 20 times in the last 10 years. Maybe this one is just much greater than the rest, I don't know.

You know, if the Republicans would just suck it up and accept that passing the idiotic Bush Tax Cuts was their fault we could start to correct that error. Oh let's not forget that George W. Bush (again, Republican) has the largest blame to bear since he spent more in his 8 years in power than all previous presidents COMBINED. /RANT

[Deleted]

Ah I see, so people spent money they didn't have and USA in general spent more money than they gained?

[Willeonge]

it wont happen, there will be a last minute deal at the very last possible moment. leadership from both parties are just political posturing atm.

[Deleted]

The debt ceiling in itself is totally meaningless for the US economy in the long run. What matters is if the US can manage to reverse the current trajectory of accumulating unsustainable debt.

On the short run, expect heavy fluctuations in the USD, Foreign currencies and gold. Interest rates will also have heavy upward pressure.

P.s. the social security checks of the elderly will not cease to be sent out, it's pure fear mongering.

[jotad4]

>Grow a d*ck
>Join Armed Forces
>???
>Profit (lots of)

[Deleted]

>Grow a d*ck
>Join Armed Forces
>???
>Profit (lots of)

What if ??? means death?
Do I still get profits?

[Wilian]

What if ??? means death?
Do I still get profits?

No but you wouldn't care at that point either so win / win?

[Kreo]

If you will go down, you better not take Canada with you.

[Elementium]

No but you wouldn't care at that point either so win / win?

You'd care about your family.

Anyway.. even if Obama is full of crap it's pretty ballsy to call out the rich and corporations like he did. He also almost hinted that we need to start being louder than the people paying their way with the government. I tend to agree that the rich should pay slightly higher taxes rather than have MORE tax cuts than regular people at the very least as a way to say "Hey we picked capitalism and it worked for you now pay it forward". I don't think the democrats are asking them to stop owning 5 homes and 100 cars but rather maybe 4 homes and 80 cars. That's a big hit

[Deleted]

>Grow a d*ck
>Join Armed Forces
>???
>Profit (lots of)

And who is going to pay the soldiers after a few months if the government can't borrow money?

As a non-American (I'm British), I'd say the answer is simple... raise taxes on the wealthy and lower taxes on the middle class.
It is obvious that the average American is seeing a reduction in their disposable income, this leads to lower spending and lower utilisation of a companies capacity meaning they are able to cut jobs.

Instead you are likely to see cuts to services and entitlements that the poorest rely on and have paid into for years, and all because of tax cuts for the wealthiest, banking collapses caused by deregulation and wars/ increased national defense spending.

[jotad4]

And who is going to pay the soldiers after a few months if the government can't borrow money?

As a non-American (I'm British), I'd say the answer is simple... raise taxes on the wealthy and lower taxes on the middle class.
It is obvious that the average American is seeing a reduction in their disposable income, this leads to lower spending and lower utilisation of a companies capacity meaning they are able to cut jobs.

Instead you are likely to see cuts to services and entitlements that the poorest rely on and have paid into for years, and all because of tax cuts for the wealthiest, banking collapses caused by deregulation and wars/ increased national defense spending.

It's just a thought, but imagine how degrading it would be if/when people who served in the Army(+) started suing the Government for not being paid. If there's anything Americans can be proud of is, supposedly, of the people who "serves their country." But now the Government has no money whatsoever, and people's most beloved "idols" are going somewhat 'against' it's own Government for being, let's say, deceived.

Actually, I'm not sure where I'm going with this anymore, but I find it to be something interesting to think about, and how many different outcomes there could be.

[Deleted]

As a non-American (I'm British), I'd say the answer is simple... raise taxes on the wealthy and lower taxes on the middle class.
It is obvious that the average American is seeing a reduction in their disposable income, this leads to lower spending and lower utilisation of a companies capacity meaning they are able to cut jobs.

It would be impossible to solve the problem by simply raising taxes on the rich. There is simply too much spending in almost all areas of government. The concept of lowering taxes for the general public is correct though, as the reduced burden on the productive part of the economy would contribute to sound and sustainable economic growth - as opposed to stimulus spending which wastes resources and causes bubbles in sectors where no proper demand exists.

Instead you are likely to see cuts to services and entitlements that the poorest rely on and have paid into for years, and all because of tax cuts for the wealthiest, banking collapses caused by deregulation and wars/ increased national defense spending.

The US could regain fiscal sanity while retaining social security and medicare, but this means cutting other spending that is not vital (as in people will not die as a direct result of cutting them) as well as military.

[Silhouette of Seraphim]

It's just a game of chicken right now.

To be honest the people should be full of rage right now and demanding more of these idiots. If that means barricading the politicians inside their building with thousands of people until they do what's right for them, then so be it.

Unfortunately it won't happen, as fast food and general fatassery have caused the majority of the American people to be complacent and not wanting to do anything for themselves. That isn't to turn this into a flame war, I'm from the US and see it every day.

[Deleted]

It's just a game of chicken right now.

To be honest the people should be full of rage right now and demanding more of these idiots. If that means barricading the politicians inside their building with thousands of people until they do what's right for them, then so be it.

Unfortunately it won't happen, as fast food and general fatassery have caused the majority of the American people to be complacent and not wanting to do anything for themselves. That isn't to turn this into a flame war, I'm from the US and see it every day.

The problem is that a compromise will almost certainly result in a disaster either way. The democrat "solution" will also result in a certain disaster later. The Republican "solution" will have the best long term effect but can cause almost any reaction (depending on the exact content of the package) in the short run.