“Financial Apocalypse”

Lehman-Brothers-collapse

The staff at Bloomberg aren’t taking any prisoners as they lay out what defaulting on the national debt would mean for the economy here at home and abroad.

Failure by the world’s largest borrower to pay its debt — unprecedented in modern history — will devastate stock markets from Brazil to Zurich, halt a $5 trillion lending mechanism for investors who rely on Treasuries, blow up borrowing costs for billions of people and companies, ravage the dollar and throw the U.S. and world economies into a recession that probably would become a depression. Among the dozens of money managers, economists, bankers, traders and former government officials interviewed for this story, few view a U.S. default as anything but a financial apocalypse.

The $12 trillion of outstanding government debt is 23 times the $517 billion Lehman owed when it filed for bankruptcy on Sept. 15, 2008. As politicians butt heads over raising the debt ceiling, executives from Berkshire Hathaway Inc.’s Warren Buffett to Goldman Sachs Group Inc.’s Lloyd C. Blankfein have warned that going over the edge would be catastrophic.

YohoExecutives say it would be “catastrophic” and a “financial apocalypse,” and that it could even be worse than Leham Brothers in 2008.

Or as Representative Ted Yoho (R-Batshit) puts it, it would “bring stability to the world markets.”

BartonYoho (Yolo?) isn’t alone in his contrarian delusion. A group of congressmen being dubbed the Default Truthers is emerging.

Representative Joe Barton (R-TX), who would like to apologize to BP for that shakedown, says defaulting on the national debt would be no big deal because he’s late paying his bills all the time. (Do we need a better example of how out of touch and clueless they are?)
Coburn
Senator Tom Coburn (R-OK) says default is really just a myth and to say that we’ll default if we don’t raise the debt ceiling isn’t “entirely accurate.”

And as you may recall, Rep. Ted Yoho also previously said that defaulting on the national debt would actually improve our credit rating. Words of wisdom from a man who held no public office and who counted cattle as his primary constituents before imbeciles in his district elected him.

If you asked me a month ago if we would default on the national debt this month, I would have said no. I would have predicted that a bill will be passed at the 11th hour of the last day to avert catastrophe. But I’m not so sure anymore. I underestimated just how much John Boehner values being the Speaker of the House over preserving the full faith and credit of the United States, and at this point a default wouldn’t surprise me.

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  • feloniousgrammar

    Is it too much to ask that candidates be given bluebook tests on the responsibilities of the U.S. Congress, financial facts about macroeconomics and government budgets, foreign relations, and constitutional law so that at least voters could get an idea of whether or not a congressional candidate has any understanding of the job they want to be elected to do?

    • nathkatun7

      I don’t think it’s too much to ask!. At least candidates for Congress should be able to answer questions on Article I of the original Constitution, and in particular Sections 7 & 8 which specifically deal with Congress’ power over the purse and Congress’ responsibility to pay U.S. debts. Also, knowledge of Section 4, of the 14th Amendment, with respect to paying the debts incurred by the government, is absolutely crucial for any one aspiring to serve in either the U.S Senate or the U.S. House of Representatives.

  • MrDHalen

    All the businesses who advertise on Fox and any of the other news outlets should start pulling their ads until they start accurately reporting what a default would mean to the U.S. & World economies.

    These businesses need to realize we are in constitutional crisis here and the President can not yield. This is not a “lets wait and see which side wins”, situation!

    And for the idiots who post the “the government shutdown and nothing happened, so the default will be nothing either!”, YOUR JOBS is on the line you stupid, stupids!!! Oh, the rage!!!!

    • feloniousgrammar

      It strikes me as being blatantly absurd that there is no penalty for congressmen who purposely lie about the laws they have passed and the way our government is meant to work. Why is it that they’re able to slander other elected officials by perpetuating lies about them?

      • nathkatun7

        Even more egregiously, especially on the part of the so called mainstream media, is why these tea bag members of Congress, like Ted Cruz,are not held to account for conspiring to destroy the U.S. economy, hurting millions and millions and millions of people? As far as I am concerned, these tea baggers are engaged in insurrection/rebellion against the U.S. Constitution. Under Section 3, of the 14th Amendment, they should be thrown out of Congress.

  • JWheels

    This whole situation is just completely unbelievable. One thing I would say is I hope “Default Truthers” doesn’t catch on, the better term would probably be “Default Liars.” To us Internet peoples Truthers is a known term, but to some I would say it makes it sound like they are actually correct. I could be wrong it was just a thought I had.

    I’m otherwise utterly shocked at how broken our democracy seems to be.

  • drspittle

    I knew US had crossed the Idiocracy Rubicon when, during the 2004 Republican convention, delegates wore purple bandaids to mock John Kerry’s Purple Heart (while idolizing the guy who never served active duty). Nothing surprises me. Nothing.