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48
I have a question 🤔💭 Theory 😲💡
posted 1 year ago by brain_dead 1 year ago by brain_dead +48 / -0

I am a brain dead, so I have a question for you smart people.

Let's assume that the debt ceiling talk cannot be resolved and we as a country default on our debt.

What happened then? Who are these debtors? What will they repo?

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– Mr_A 11 points 1 year ago +11 / -0

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.

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– brain_dead [S] 3 points 1 year ago +3 / -0

Thanks for the clarification. Appreciate that.

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– Mr_A 3 points 1 year ago +3 / -0

Your brain is more quickened than you think!

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– brain_dead [S] 3 points 1 year ago +3 / -0

Thank you.

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