Cornyn and McConnell Will Not Back Ted Cruz

[mojo84]

At some point the country is going to face a day of reckoning when it comes to our debt. Is is better to man up and take care of it now or leave it for our kids and grandkids to deal with it?

Define man up and take care of it.

You asking that question is very telling.

Defaulting on the debt is not "manning up" it is going bankrupt.

Did I say that? Where?

Making the hard decisions needed in order reduce our spending.

[Cedar Park Dad]

At some point the country is going to face a day of reckoning when it comes to our debt. Is is better to man up and take care of it now or leave it for our kids and grandkids to deal with it?

Define man up and take care of it.

You asking that question is very telling.

Defaulting on the debt is not "manning up" it is going bankrupt.

Did I say that? Where?

Making the hard decisions needed in order reduce our spending.

The issue is the debt ceiling. If you don't raise the debt ceiling the government defaults. You can't raise taxes (and taxes will be raised ladies and germs) fast enough and quickly enough to avoid a default. Its a simple matter of the world's largest liquidity crisis.

Reduce spending, balance the budget. All these things can be done. They can't be done overnight. It takes orderly decisioning, and timing for revenues to increase and spending to decrease.

Again its simple math.

[Charles L. Cotton]

Countries that default on their debt take generations to recover, if ever.

Unless they have the military might of the United States. "Those with the guns make the rules" is a truism, like it or not, and I happen to love it.

Chas.

No actually. If you default on the debt your economy crashes, utterly and completely. Military is irrelevant. Enjoy the toys though, because there won't be any more stealth fighters coming off the assembly lines in the US for a couple of decades if you default.

Yes, actually. The debt default will be on foreign debt first and that will be sufficient to shore up the U.S. economy. There is nothing that the U.S. needs that we don't have or cannot take. I know as a "moderate Democrat" you don't like hearing that, but that's a fact.

Chas.

Thats not how it works. There is no debt marked "foreign owned debt, default on them first." Default on one issuance and the remainder will lose value quickly, and it will spiral. Want to borrow more debt? Be prepared to pay multiple digit interest.
Everyone who owns bonds will watch the value of those bonds plummet. Municipal and state bonds would also be hit hard, including the ability to reborrow.

Further, if its a hard snap this could trigger a liquidity crisis not only in the government but in the banking sector in similar fashion to 2008.

Again this isn't speculation. This is history. And there's no reason for it. Most people can balance their books without going bankrupt.

There's no point in trying to discuss this with you when you refuse to recognize Congressional power to disavow foreign dept.

Chas.

[Charles L. Cotton]

This thread is temporarily locked while the Moderators and I consider the future of the Political subforum. It was started in response to Members' requests for a separate forum to discuss gun-related political issues. This limitation is expressly stated in the forum's description.

It didn't take long for that limitation to be ignored and it has become a favored target of people who love to start controversial threads more for the fight than substance. When discussions are over the decision will be publicized and this thread will either be opened or not.

Chas.