What Actually Happens Oct. 17th | Page 2 | TigerDroppings.com
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NC_Tigah
LSU Fan
Member since Sep 2003
57892 posts

re: What Actually Happens Oct. 17th

quote:

What Actually Happens Oct. 17th
Thanks Benny.
I've been saying the same thing on the "other board".

Essentially if we hit the Oct17th Debt Ceiling, we've got a suddenly imposed Balanced Budget. Decisions would be hard, but actual default would constitute dereliction.


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matthew25
Ole Miss Fan
Member since Jun 2012
3930 posts

re: What Actually Happens Oct. 17th
So, 1/3 of federal "creditors" don't get paid.

I guess you could rotate the pain -- one month social security recipients are not paid, the next month medicare and student loans, then military and federal contractors. Repeat.

Under bankruptcy laws, 3 creditors can put you into involuntary bankruptcy. Does government work the same way?

And who decides the sequence, the Decider in Chief?


SpidermanTUba
LSU Fan
NAWLINS
Member since May 2004
32277 posts

re: What Actually Happens Oct. 17th
quote:

During the previous debt ceiling negotiations and rating downgrade, Treasuries rallied.

The U.S. didn't default during the previous debt ceiling negotiation.


SpidermanTUba
LSU Fan
NAWLINS
Member since May 2004
32277 posts

re: What Actually Happens Oct. 17th
quote:


one debt payment? yeah.


Yes. If the contract says the U.S. has defaulted, its defaulted. The U.S. sent a few checks out late in the 70's and short term rates jumped overnight.


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SpidermanTUba
LSU Fan
NAWLINS
Member since May 2004
32277 posts

re: What Actually Happens Oct. 17th
quote:

Payments are routinely delayed for one reason or another in the normal course of business.


PAYMENTS TO U.S. DEBT HOLDERS ARE NOT.


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Cold Cous Cous
LSU Fan
Member since Oct 2003
14040 posts

re: What Actually Happens Oct. 17th
quote:

Under bankruptcy laws, 3 creditors can put you into involuntary bankruptcy. Does government work the same way?

Are you asking whether 3 creditors could join together and force the entire federal government into an involuntary bankruptcy.


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BennyAndTheInkJets
Arkansas Fan
NYC / Orange County
Member since Nov 2010
4279 posts

re: What Actually Happens Oct. 17th
quote:

The U.S. didn't default during the previous debt ceiling negotiation.

And prioritization would be enacted before the default occurred... not sure what your point is here?


90proofprofessional
LSU Fan
Member since Mar 2004
11143 posts

re: What Actually Happens Oct. 17th
quote:

rioritization would be enacted before the default occurred... not sure what your point is here?

the exact definition of "default" is doing some work here for Tuba


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