Originally Posted by mlyonsd
I don't know how those numbers are created since you didn't provide a link. My only guess is those numbers are figured with no cuts in spending to make them work.
The federal government brings in on average $200 billion dollars a month so you do the math. Over $2T a year.
This guy explains it pretty well. It's from last year's cliff but the math is the same.
Again, it's funny watching you guys get totally bent over by your masters.
Sorry here you go. Just from a few hours ago.
Prioritizing interest payments means Treasury must choose from more than 100 million monthly payments and would not be able to pay 40% of the dollars owed.
Or Treasury may opt to pay all bills in full but would be late on every payment except those owed to bond investors.
In either case,"the reality would be chaotic," the Center said in its analysis.
Why? everybody who gets stiffed would throw a fit, and Treasury would be put in the awkward position of having to pick winners and losers.
Economically, cutting federal spending by 40% a month - or indefinitely delaying payments - could cause a lot of disruption for contractors due money and individuals waiting on federal benefit checks. And it would add even more uncertainty about the U.S. economy for investors and businesses.