We are not going to default.

There are two types of spending in our government. Discretionary and mandatory. Mandatory is supposedly important things like defense spending. Discretionary is everything else.

When we hit the limit discretionary spending gets cut while mandatory does not. We call this a government shutdown. It's happened a few times. It's not a big deal. Everyone gets back pay in the end when the Republicans inevitably cave. A few useless government offices are closed for a few days. Nobody notices.

Importantly, repaying the debt is mandatory spending. It does not get cut.

If the debt ceiling debate can't be resolved at any point then a bunch of useless government employees are kind of fired.

It'd be a huge win.

Debt ceiling and default are different. Debt ceiling means the country has borrowed the maximum that congress has authorized. Congress saying they will not raise the debt ceiling is like the credit card company not raising your credit limit.

Default means a failure to pay an already-existing debt. Each debt will have its own agreement regarding the consequences of default, but defaulting is not the same as hitting the debt ceiling.

I think they will collapse the banks, blame it on the debt ceiling and then replace the money lost in the banks with CBDC.

If the smaller and medium sized regional banks start caving, the larger banks and the Fed will "call in" all outstanding debts. If you can't pay, they take your shit. House loans, car loans, business loans, etc. This is what [they] did at the beginning of the Great Depression. Loans were called in and a lot of people lost everything because they were leveraged to the eyeballs and couldn't pay outstanding debts on the timeline the Fed and the larger banks provided. The timelines provided started out at 30 days, but by the 2nd week fo nothing but stock market losses, they were only giving people around 3 business days to come up with the money to pay off their debts. This is how upwards of 25% of workers ended up jobless, mortgaged homes were foreclosed, businesses shuttered, farms foreclosed and everything was auctioned off just so the large banks and Fed could recoup some of the Fed Govt's outstanding debts.

Only this time will be slightly different. Instead of the Fed calling in those loans and auctioning off assets, it'll be the World Bank and the IMF doing it. The IMF is the Central Bank for ALL central banks for ALL UN members and any non member country who has a central bank. And [they]'ll justify it by telling the American People that if you have a SSN, you are, in fact, an owned employee of the Fed Govt and have no legal recourse to stop it.

But I don't think we'll get that far. Some people will lose, but once it becomes apparent that the majority of the indebted will lose their asses, that's when the American Public will take to the streets and finally begin to take back their power. From my logic, that will be the precipice. Not some world war, not some CBR attack, but people facing losing everything and ending up homeless with children to feed.

The people will finally begin to wake up to the fact that they're playing a rigged game and can't possibly win unless they take their power back.

Good question.

I think one of the first things that will happen is that the National Parks will be owned by the Rockerfellers and Rothschilds.

No default; that is the Narrative the Left want to give. We have more than enough money to pay our bills...Social Security, Medicare, Medicaid, Military, Federal Government employee payments, etc. It's just that in order to STALL from signing the great Bill the House has passed, they want a BLANK check to spend more than we bring in. So don't pay any attention to them saying we are going to DEFAULT because we are not. That's what they want to tell the rest of the nation in order to get what they want and blame the Republicans for.

The US Government spends more than its income. So it has to constantly borrow money. They constantly are holding meetings with investors where they sell US Government bonds. To institutions and foreign governments etc.

If the government is not allowed to borrow more, then they must live within their normal income from taxes etc. However, $640 billion of the budget is for interest payments on the US Debt.

If the US Government decides to stop making those payments, then nobody will ever buy any US Government bonds again, making running a budget deficit impossible.

If the US government just prints up the money to pay off the creditors, it leads to the same result - nobody wants US dollars any more. We are no longer the world's prime reserve currency.

This bunch of politicians will never cut spending - so we are headed for rough times IMHO. All intentional - not because of incompetence. They are doing it on purpose.

The demon rats will cry oooooh we are going to default and crash oooooh if we dont quit spending like drunken sailors we will default...BULLSHIT...they will say anything to hang on to their wasteful spending...fuk em....

I had the same question. I will read the comments carefully.

China owns a majority of our debt. Basically, our banker. What happens in the real world when you default? Foreclosure. It is all intentional for the great reset.

We pay or our standing becomes worthless.

IMHO, nothing major will happen until they take our guns.