RESPONSE TO ALL THESE FALSE STATEMENTS AND RHETORIC REGARDING THE RAMIFICATIONS OF CONGRESS NOT RAISING THE DEBT LIMIT:
The process isn’t so black and white… or simple AT ALL… and the responsibility of handling such a crisis is redirected immediately away from “The Hill” or “White House.”
Actually…If Congress fails to raise the debt limit, this would automatically hand such a crisis over to the Department of Treasury. The department would then begin rapidly to inact an “extraordinary” series of measures.
The Treasury would first then have two options.
1) Default on our country’s debt and stop paying creditors around the world, which would be the least likely option, as it could bring the entire government and financial system down with it destroying this country as we know it… or
2) Continue to pay creditors, but halt any spending over what our government collects in taxes alone. In effect, that would mean an overnight spending cut in excess of 40% of the entire country’s budget.
Here are six very possible consequences if the Treasury is forced to choose either of those two options above…
1) Cut $125 Billion every 30 days in federal funding across the board, this would include deep government pay cuts from the President and Congress on down…
2) Treasury Bonds Completely Collapse
3) Make Deep Cuts to both Medicare & Social Security
4) Stock Market Collapses
5) Thousands of Government Employee Face Immediate Mass Layoffs
6) Mortgage & Interests Rates Would Sky Rocket to Historical Highs Never Before Even Imagined.
The President has simply stating one of the many very real consequences that may occur if the TREASURY has to initiate certain measures already outlined that it must inact in such an extraordinary scenario, which is the fact that he can’t promise that Social Security or Medicare won’t be drastically impacted.
I hope that this clears up any confusion regarding the process and consequences of such a move by Congress. It will be out of the President’s hands and Congressional Elected Officials would likely have their pay slashed dramatically along with Social Security Insurance Benenfits.
This is the reality. This is the truth…
The graphics that have been making their rounds upon the social networking sites and other internet venues with incorrect, misleading political spin without facts to support such ignorance, that these posted works of fiction state and present as factual are very much “political rhetoric” of falsities.
I could think of another term or two to describe this material as well, but I am sure most of us can as well.
I suggest that when you come across this sort of viral sensationalism of vast ignorance, please just take a few minutes and give them a lesson in reality.
Hit them with the truth, they’ll probably hit ya back… then just hit them back even harder with THE TRUTH!
Respectfuly,
Shaun Broy
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