Arnies mad!

[Odysseus]

Arnie is bluffing now but in the not to distant future this may actually happen nation wide. No welfare checks no unemployment, social security, military pay. I read on drudge tonight we are about to lose our triple a credit rating that means no more barrowing money. We could have complete upheaval around the corner. I’m not joking so much about this one. It’s getting ready to come down. God help us!

A drop in the US bond rating would be catastrophic. The national debt would increase dramatically as the cost of borrowing increased. We'd be forced to pay higher interest, and we may end up having to live within current revenues or default on obligations. A sudden drop in federal expenditures without any warning would be incredibly disruptive to the economy. There would be massive civiil unrest and the ones who'd be hit the hardest would be retirees, especially those who depend on Social Security and public pensions (think about all of those retired municipal, state and federal retirees who'd be suddenly left out in the cold). This would be the kind of cataclysmic event that could actually cause our government to fail.

[lacarnut]

Suing the state different than suing an individual. Most suits against the state get tossed out before they go anywhere unless they have merit. Remember, the state decides who can and can't sue the state.

Yep, you have to get permission first to sue the state I live in. After 7 years, I along with a number of other employees are waiting for the court to grant a class action law suit for working in a contaminated building that the state was aware of. I am not holding my breath that this suit will ever see the light of day. The dumb ass lawyer should have sued only the owner of the building rather than both the lessee (state) and the owner. The owner has deep pockets.

[Rockntractor]

A drop in the US bond rating would be catastrophic. The national debt would increase dramatically as the cost of borrowing increased. We'd be forced to pay higher interest, and we may end up having to live within current revenues or default on obligations. A sudden drop in federal expenditures without any warning would be incredibly disruptive to the economy. There would be massive civiil unrest and the ones who'd be hit the hardest would be retirees, especially those who depend on Social Security and public pensions (think about all of those retired municipal, state and federal retirees who'd be suddenly left out in the cold). This would be the kind of cataclysmic event that could actually cause our government to fail.

I agree with you. I am starting to see the hard reallity of this situation.

[lacarnut]

A drop in the US bond rating would be catastrophic. The national debt would increase dramatically as the cost of borrowing increased. We'd be forced to pay higher interest, and we may end up having to live within current revenues or default on obligations. A sudden drop in federal expenditures without any warning would be incredibly disruptive to the economy. There would be massive civiil unrest and the ones who'd be hit the hardest would be retirees, especially those who depend on Social Security and public pensions (think about all of those retired municipal, state and federal retirees who'd be suddenly left out in the cold). This would be the kind of cataclysmic event that could actually cause our government to fail.

I don't think the US AAA bond rating is in jeopardy in the short run but it could be in the long run. Several EU countries are in much worse shape than us. Plus, the dollar is still king among all the currencies.

No doubt that interest rates would go up especially if we could not find someone to finance our debt. China is getting antsy because of the way the Feds are flooding the market with dollars. Something will have to give, and I think inflation is around the corner. Buying gold seems like a good idea to me.

[AlmostThere]

Add the impact the eruptions of the Craters of Laki had on Europe in the 1780's and it created the perfect storm in which the seeds of revolution could blossom.

[Odysseus]

Add the impact the eruptions of the Craters of Laki had on Europe in the 1780's and it created the perfect storm in which the seeds of revolution could blossom.

Yeah, but the French Revolution was far worse than what preceded it. Just because something is a change doesn't mean that it's an improvement.