>

But following that economic collapse all their campaign donors will suddenly see interests rates spike to the moon. They wont exactly be happy they cant fund any development, construction, or even basic financial projects anymore. No company can expect a bailout if they fuck up etc. Nobody other than Boebert and Green would be that stupid to actually follow through on this game of chicken
What will this mean for other government employees? Like state employees are often funded by state or county budgets but that is with money coming down from the feds. If we default, that money doesn’t come. >

It will have a catastrophic, trickle down effect.
Depends how much money your state gets from the feds. California may be fine. Louisiana and Mississippi? Good f’ng luck >

This isn't the trickle down effect I was promised >

They let losses trickle down, but not gains. >

Socialize loses privatize gains.
We don’t live in a capitalist world.
We live in a Corporate Socialism one. >

No, you live in a Capitalist one. The whole point is to externalise losses and internalise gains, nothing to do with Socialism.
This is the end-game of Capitalism. This is what happens when your entire system is based around owning private ownership of Capital.
The people with the most Capital bribe the people in charge and politically manipulate the system to their advantage. >

The is absolutely insane.
Modern economics uses an extremely important number that we call the "risk free rate of return" and abbreviate as Rf.
This value is fundamental to modern finance. It's the number that let's you find the current value of any guaranteed future payment.
Economists combine this with other risk factors to do most of the predictive modeling you've ever heard of. Stock pricing models, Black-Scholes even simple mortgage calculations.
The thing is, nobody really knows the true value of RF. All we can do is observe actual rates of return and assume that Rf is some part of it.
In practice, we use US government debt to estimate Rf. Why? Because, historically, it's the only interest rate that reflected 0 investor expectation of default.
The US has never defaulted. Ever.
And this is the really strict definition of default where even a second late payment would count. The US hasn't done it.
Historically, the US has been so reliable about paying back debt that investors assume that the US will always do so. If you lend the US money, you will 100% get your money back, on time and with all interest owed, come hell or high water.
Right now the US has a perfect record on debt repayment.
There's no way to get from a nearly perfect record back to a perfect record. >

The last time they dicked around the US debt was downgraded. >

That was for just getting close >

They might as well downgrade now. I have absolute faith in Republican obstructionism, they will hold the World’s economy hostage and trigger a global recession in an attempt to score political points.
e: To those saying “but the donors!” The donors are fine with this. Remember all those record profits you’ve been hearing about for the last few months? They can take the hit, and in return, everything else suddenly got cheaper, perfect for expanding the portfolio. They’ll come out ahead, just like last time. >

And they don't even know what they want. They are demanding "cuts," but refuse to specify how much and from which areas. Instead, they are demanding that Biden and the Democrats bring them a plan with cuts so they can give their thumbs up or down.
It's like trying to negotiate with a kidnapper who tells you to leave a suitcase full of money in a location and they'll get back to you on whether it's enough for them since they haven't decided on a ransom demand yet. >


And they don't even know what they want.

They want to destabilize the global order.  That's all they want.  Because when they do that, global fascists movements will have their necessary window, to implement their desired political movements at warp speed, once there is enough public unrest to foment dissent, and manufacture consent for atrocities. >

No half measures >

Gotta whole ass one thing. >

I'm out of the loop I guess, but I thought this was squared away?
And if it isn't, what would this mean for everyone if we did default? >

So, and someone with more economic knowledge than me can explain further, but basically there is a debt ceiling that is separate from the budget that Congress passes. Congress already passed the budget, but the debt ceiling was not passed at the same time. The money is already spent, but now the debt ceiling must be raised or by a certain date, the US will just stop paying its bills. The Republicans want to change what’s already been agreed upon, and Biden is just like “uhhh fuck no you agreed to this” 
If the US does default, it’s going to mean serious economic repercussions. All over something that is frankly absurd. >

They've done this dance for decades though haven't they? Every time they raise the debt ceiling cause otherwise imminent financial collapse will follow >

Yeah but thats the point. Republicans are doing everything they can to cause economic collapse in an attempt to make Biden and Democrats look bad.