What Actually Happens Oct. 17th | Page 2 | TigerDroppings.com

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NC_Tigah
LSU Fan
Member since Sep 2003
53606 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
3492 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?






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SpidermanTUba
LSU Fan
NAWLINS
Member since May 2004
30727 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.






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SpidermanTUba
LSU Fan
NAWLINS
Member since May 2004
30727 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
30727 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
Obvious and pointed jeering
Member since Oct 2003
13837 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
4054 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?






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90proofprofessional
LSU Fan
Member since Mar 2004
9395 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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