Here’s what would happen if debt ceiling not raised
All presidents exaggerate. President Barack Obama just does it with media help.
Notice how every network, including Fox, does not argue with “Obama’s not raising the debt ceiling will ‘bankrupt’ the country” exaggeration.
Current revenue is $225 billion a month. Total amount of this to service our debt about $20 billion.
Obvious Obama nonsense. What happens?
Treasury and the Fed no longer are issuing debt and buying it with printed money. The only ones available are rollover. The last time this happened was with President Harding. The result was a huge surge of note price and a yield drop.
Government spending is slammed. Bill Clinton-level spending per person based on 317 million Americans. A recession half as bad as 2008 ensues, but Obama tries to get tax hikes to help the children but the House stops it.
Ability to increase U.S. debt stopped means gold drops to $800 an ounce, oil to $65. Why? The U.S. budget is balanced. The dollar soars, not drops as Obama claims. The 30-year mortgage rate is around 2.5 percent. (No Washington drawing available credit)
Consumer prices fall about 5 percent through 2014. Example, gasoline down $1.25 a gallon.
The first boom since the 1980s begins based on low taxes, loan rates and cheaper commodities.
Incomes rise faster than any time since the 1920s.
Or we listen to a president who has trouble with grade 8 algebra.