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4 Bumps

What happens when the US defaults?

• After Aug 2, someone expecting a government check will not get a check, and it will be the Obama administration that decides who this is – “I expect the administration to play that for maximum political advantage,” explains Stuart Varney. (Obama just told CBS News this about Social Security: "I cannot guarantee that those checks go out on August 3.)

• On Aug 3, $23B in Social Security checks are supposed to go out – “They will almost certainly, definitely go out,” says Varney

• On Aug 15, we have to pay an interest bill of $30B on debt that’s already outstanding – “That will almost certainly be paid,” explained Varney, and so on and so on, “but sooner or later someone will not get the check they are expecting and that will be called a technical default, different than a mainline default, but a default nonetheless”

Answer Question

Asked by Carpy at 8:05 PM on Jul. 12, 2011 in Politics & Current Events

Level 39 (114,053 Credits)
Answers (5)
  • I think this is just more of the same political mind game. It almost seems that PBO knew the dems would loose at least one of the houses. He has not gotten his caucus to pass a budget when the help both houses. It is like he waited. This is the fight he is going to use to get re-elected I do believe. The debt ceiling is just one more thing to say 'see, I told you the repubs wouldn't play (or 'eat their peas)' so he can use that as an election talking point. It isn't real. It is a ploy. I have a novel suggestion for the gov't. Stop borrowing money, live within our means. We don't have a revenue problem. We have an employment problem. Get people working and the revenue will flow.

    Answer by jesse123456 at 8:30 PM on Jul. 12, 2011

  • I saw something about this recently on the news. When the US defaults we're gonna spiral down into an even worse recession that the one we're trying to climb out of.

    Answer by Rosehawk at 8:30 PM on Jul. 12, 2011

  • I really don't know for sure but I am certain that Obama wants us to think that the sky will fall...

    Answer by agentwanda at 8:56 PM on Jul. 12, 2011

  • It would have been nice if they had thought of this BEFORE they passed the PORKULOUS bill.

    The govt needs to do what the folks at home have to the NECESSITIES first. There are thousands of things that could be cut off or shorted without threatening soc sec, disability or mili retirement benefits. Our president is a first class jackass for even hinting at such a thing.

    Answer by yourspecialkid at 9:48 PM on Jul. 12, 2011

  • i expect the stock market will have the screaming jitters and the price of gold will rise but not much else .

    Answer by janet116 at 10:08 PM on Jul. 12, 2011

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