So if the USA defaults August 2nd, what will happen?

[DudeistBelieve]

I haven't gotten a clear answer from anyone, it ranges from "It won't be so bad" to "Apocalyptic" can someone explain exactly what's gonna happen?

ugh... I really hate our Dumb and Dumber two party system... Free election my ass.

 

[Thaluikhain]

Everyone outside the US will laugh at you, for one.

Whatever the results "Actually" are, there will be a massive loss in confidence in the US government/economy, which will fuck things right up in of itself. All that time and money spent putting the US economy back together again? Possibly all of it would be wasted.

Not to mention, another kicking for various other fragile economies around the world.

On the other hand, those of us living in Australia will continue to be mostly unaffected, except that it'd be harder to get tourists to come here and spend money.

 

[Staskala]

First world nations can't default. Stop listening to the fear-mongering bullshit that a certain part of your media likes to propagate.
If the USA was even close to defaulting, they'd raise taxes, cut spending or, you know, just move out of Iraq.

 

[Dratis]

Here your assuming we have confidence in our government to actually do such a thing instead of hold out until all shit has already hit the fan. But your right we need not worry as much because with the world economy like it is I'd assume that such a big problem for such a large nation like the USA would mean problems from the rest of the First World Nations as well.

What ever happened to the old idea everyone us to have that if your economy is failing, just invade another one, take their stuff and maybe make their citizens slaves, We could do it! I'm sure that would go over well, I mean it went well the last few times nations tried it.

 

[GrimTuesday]

First world nations can't default. Stop listening to the fear-mongering bullshit that a certain part of your media likes to propagate.

You're wrong, as evidenced by the default of Greece, Spain, Portugal, and Ireland which has contributed to the almost complete meltdown of their economies.

Basically, the government doesn't take in enough money for all the programs it runs. So to make up for the gap in revenues and what is actually required, they issue what are called bonds. For the most part, these are only worth between 50 and a couple hundred dollars and are mostly bought by your average citizen. Now there are also a type that are worth much more than that and are bought up by other countries for the most part. Now, if we were to default on our loans this would make the US's credit score go down, thus showing potential investers that the US is a less than secure investment, thus driving up the interest rates we pay to those countries that have purchased the bonds. So really, it means the the government will either not have as much money because other entities aren't buying our bonds, or the government is having pay even more in interest due to the lowered credit rating.

There are other things at work, but that is a basic explanation of why a default would be bad.

 

[Soviet Steve]

It wont happen but if you look up 'Wall street crash' on Wikipedia, basically that but maybe 50-200% worse.

 

[Sticky Squid]

The US will default, people will become more and more paranoid and the escapist will have a lot more threads about China.

 

[Worgen]

you wont get a real answer since its never happened, chances are it will be bad but until it happens we dont know what will happen

 

[Worgen]

First world nations can't default. Stop listening to the fear-mongering bullshit that a certain part of your media likes to propagate.
If the USA was even close to defaulting, they'd raise taxes, cut spending or, you know, just move out of Iraq.

that is what I would assume if we didnt end up electing these fucken moron tea party shits, they are too stupid to know what compromise is so they think this is the best time to stand for everything they want and not give an inch, really the only debt plan they have is to eliminate taxes totally and everything will work out

 

[Vault101]

Everyone outside the US will laugh at you, for one.

Whatever the results "Actually" are, there will be a massive loss in confidence in the US government/economy, which will fuck things right up in of itself. All that time and money spent putting the US economy back together again? Possibly all of it would be wasted.

Not to mention, another kicking for various other fragile economies around the world.

On the other hand, those of us living in Australia will continue to be mostly unaffected, except that it'd be harder to get tourists to come here and spend money.

havnt we been having trouble with that for a while?

out AD campagns havnt been working

ESPECIALLY that spin off campaign from that abomination of a movie

ohh look an Aborigianie kid!...yeah because aboriginaies have magical powers, if you happen to be stressed an aboriginal kid will break into your apartment and give you some sand, then youll be teleported to outback Australia..agghhhh!

"We're gonna go walkabout!...here's some sand!"

 

[Greatjusticeman]

Things won't be pretty.


We would lose our AAA Credit Rating. The government wouldn't be able to borrow money for awhile which means they would have to cut down a lot of programs and such. Social Security would take a hit, the military would take a hit, the stock market would take a hit.

It wouldn't be only us, however. It would be the entire world that would take a hit. Yes, to the guy above, even Australia would be hit. Because if America is going to go down so is everyone else. That's why all the big nations from China to the U.K. is worried that we won't extend the debt ceiling on time.

Essentially, the world would be plunged into a recession that would make the 2008 dump look like nothing.

 

[Greatjusticeman]

First world nations can't default. Stop listening to the fear-mongering bullshit that a certain part of your media likes to propagate.
If the USA was even close to defaulting, they'd raise taxes, cut spending or, you know, just move out of Iraq.

Actually, they can. Portugal, Spain, Ireland, and Greece are all examples. Hell, back in 2000 or 2001 Japan did default and they lost their AAA credit rating.

Also, even if we weren't in Iraq and Afghanistan, we would probably still be in this situation. The government borrows money not to fund those wars but to fund a ton of useless programs that are just there to extend the grasp of the government.

 

[Khada]

First world nations can't default. Stop listening to the fear-mongering bullshit that a certain part of your media likes to propagate.
If the USA was even close to defaulting, they'd raise taxes, cut spending or, you know, just move out of Iraq.

amen!

EDIT... better extend that else i'll cop the ban hammer again... =.=..

The debt ceiling is an arbitrary number that can be changed whenever it's needed. Go watch Zeitgeist Addendum for a clearer understanding of how the monetary system works.

 

[Phlakes]

Some bad shit.

So, anyone know a good, relatively wallet-friendly university in another country?

 

[FalloutJack]

I suppose people are expecting some instantaneous effect even if it does. Like you wake up one day and BAM, no government. That much? Isn't happening. Some state of emergency thing will pop up because they don't want everything to go to hell in case of a crisis. Honestly, if they haven't figured out their monetary issues, they HAVE worked on damage prevention.

 

[TonyVonTonyus]

I'm assuming China will be repoing some stuff, mainly the country and you'll be speaking Chinese by August the 4th. Seriously, the debt ceiling is just a number. Since during the Bush Presidency they raised it 7 times. Though I'm sure some sort of "war against terrorism" or something along the lines of that will "sponteanously erupt" prompting the US to go to war and seize resources that are "essential to the enemy" and then somehow those resources will end up in China.

ugh... I really hate our Dumb and Dumber two party system... Free election my ass.

Anarchist-socialist state or Fascism should be the options on a ballet.

 

[Redlin5_v1legacy]

The rest of the world will be royally pissed, especially us Canadians. Just because your economy goes to shit must mean we must fall too, right? I really hope those politicians fix this before it all goes to hell but I don't have much faith in them.

This will royally piss me off if I find myself laid off.