How will the failure to raise the debt level affect ordinary people?
Write those stations and tell them you want to hear an answer to this question:
How will failure affect the CEO of the financial institutions on Wall St and K St? How will it effect those billion dollar corporations like BP and Dirty Coal and Nuclear power and Bank of America?
The interesting thing is that they keep telling us not raising the debt ceiling is going to hurt us but it is actually like the TARP money - not doing it is going to hurt the elites, the bankers, the investment community, the global corporate oligarchs.
All interest rates will be higher they whine -- it will be harder to borrow and therefore CONSUME their products.
It will be harder to create wealth through forcing us into debt through their credit economy. That is what our economic system has become --credit driven and debt based. Our debt generates wealth for the elites. But if their already unconscionable interest rates swell even higher, we will stop using credit.
From the Consumer Affairs:
"But forget all that for a minute. Let's talk about something more important – your money. Where is it right now? If all of your money is currently invested in debt, then you can sleep soundly (or at least as soundly as you usually do) but if you have stocks, bonds and other investments, it's worth taking a moment out to consider that the full faith and credit of the United States may not mean much in the weeks ahead.
If you are in the stock market, whether through individual stocks or mutual funds, consider for a moment that if Congress abdicates its responsibility, the stock market is likely to tank, losing a huge amount of its value. How will you feel if you wake up Aug. 3 to find that your IRA is now worth half what it was the day before?
Lambs to the ...We don't like to say this, but up and down Wall Street the talk is all about how the “sheep” (the term of art for individual investors) are still sitting in equities. Financial advisors are amazed that their clients have not even called to discuss the situation.
Folks, this is not a good situation. The last time the stock market took a dive, millions of individual investors sat tight until the market hit bottom. Then they sold, taking huge losses.
Remember the credo: Buy low, sell high. Not the other way around.
If your equity holdings – stocks and mutual funds – are part of your IRA or other tax-exempt vehicle, this might be the time to move a portion into cash or a cash-equivalent. It won't cost you anything to do so, other than any brokerage fees you may incur.
Even if your portfolio is not tax-exempt, it may be a good idea to move at least some of your holdings out of equities. Yes, you may incur capital gains tax (the “rich person's tax” we hear so much about) but that may or may not be an issue depending on the basis of your holdings.
Yes, you may have to pay some capital gains tax if you sell some stocks now but if the market goes south in a few weeks, you will most likely be ahead of the game.
Because this is not an investment-advisory site, we are going to ignore the whole area of equities versus bonds. Let's just say that if your retirement fund, nest egg, life's savings, investment portfolio or whatever you want to call it consists mostly of stocks, you are Humpty Dumpty right now, sitting on the wall, hoping everything turns out OK.
If you fall off the wall, it will take a long time to put you back together.
What to doIt's pretty simple. The big money has been moving into cash. That means money market funds, even certificates of deposit if you are truly risk-averse, and various bond funds.
Bonds may be good for individual investors but a U.S. government default would not do wonders for the bond "
These are the people to whom raising the debt ceiling will have real consequences. They try to scare us with Social Security and Medicare. They try to blame the entitlement programs for the deficit although they admit they constantly raid the SS funds,
This is a perfect time to change that credit based economy -- the credit bureau phony ratings, the credit card as opposed to the layaway, inflated mortgages along with the inflated rent forcing more people into substandard housing, outrageous property taxes to support the public unions who elect their employers. The wealth legislators vote for their own benefits and pay and for their staff to keep their staff silent -- all of this will be effected by a refusal to raise the debt ceiling.
The sons and daughters of our politicians are hedge fund managers and lobbyists. Our politicians act in their own interest and will sacrifice the interests of the working class to their own interests. We ought to be organizing against all of them. We ought to eliminate legislator and staff's retirement pensions and their medical insurance forcing them to have only SS and Medicare. We ought to limit their terms to 10 years with no ability to lobby after their term. We ought to have complete campaign financing with free access to all public media. We ought to be ready to shut this country down if they touch our benefits, so called entitlements. There are so many other ways to find the money for the deficit including ending the drug war. Here is a good list:
When we refuse to allow them to raise the debt ceiling, new systems of exchange will have to be developed or there will be riots right here in freedom land.
If we raise the ceiling it will be business as usual and that means we allow the rich to get richer from screwing the working class.