[quote=The-Shoveler][quote=SK in CV][quote=livinincali]
The bottom line being the media and analysts are lying when they say not raising the debt ceiling means a default. No, it just means there’s an immediate and large cut to government spending.[/quote]
It also means a severe recession. A spike in unemployment. Probably a depression.[/quote]
Not likely to happen,
As it would all but kill off most local municipalities pension systems (the real thing the Fed has been so desperate to save, not so much the housing market as most everyone believes but the tax base and stock market are the real targets).
Also it would likely increase the Debt even further.[/quote]
It would undoubtedly happen. See Greece. See every single time the Federal government has drastically cut spending.
The Fed is in it for the banks. Not for wall street. Not for pensions. Not for unemployment. Its primary goal is to keep inflation down. That’s what banks MUST have. Everything else is secondary.
Oh, and under your scenario, how can the debt be increased without a increase in the debt limit (which is not the issue congress has been debating the last 3 weeks anyway)? Kind of back to square one. Cuts to government spending increase deficits.
