Custom Search

Sunday, July 24, 2011

Consequences of a US Default on Debt Payments

United States Mint PoliceImage by cliff1066™ via FlickrWhat will be the Consequences of a US Default on Debt Payments?

The failure of Democrats and Republicans to resolve the US cash flow problem could result in serious consequences to all American’s and negatively effect world wide economics.

The US government will be unable to fulfill its financial obligations. Creditors (ie bond holders) would not receive payment resulting in a down grading of the US credit rating. Therefore, mortgage rates would rise, and home owners would see an increase in their monthly payments. People with car loans or any loan will have to find more funds to meet their commitments.

This may be difficult for those on military salaries, social security or unemployment as these payments from the government will, in all likelihood, be delayed.

In addition, money for infrastructure repairs and improvements and education may be reduced resulting in construction and educational job losses.

What about those on Medicare, will they be left to fend for themselves?

Stock markets will, in all probability, suffer serious declines. Those fortunate enough to have 401ks will see those decline in value, disrupting their future retirement plans.

No doubt the US dollar will decline in value. This would have a positive effect for export business but an increase in the cost of borrowing would offset any such benefit.

In short it is time for the politicians to stop playing at politics and start working together towards finding a solution to this very serious economic crisis.



Stay on Track,Money Magazine Hoss

Next Hoss Cents Free Financial Money Magazine Post: July 2011

Return to previous post from Consequences of a US Default on Debt Payments
Enhanced by Zemanta

0 comments:

Post a Comment

Stock Ticker

Disclaimer

The Hoss is not a financial adviser. This blog is a reflection of his personal opinion, experience and financial choices. For financial assistance, please consult a licensed financial services professional.

The contents of http://free-financial-money-magazine.blogspot.com are provided for informational and entertainment purposes only, and should not be construed as advice. This material is not intended to provide, and should not be construed as providing individual financial, investment, tax, legal or accounting advice.

While the information shared on this website is believed to be accurate and reliable, the owners/operators of this website specifically disclaim all warranties, express, implied or statutory, regarding the accuracy, timeliness, and/or completeness of the information contained herein. Individuals leaving comments on this site are solely responsible and liable for the contents of their comments. Because this website is intended to provide general information only, you should discuss your specific needs with a qualified licensed financial services professional.

Links to other websites are for convenience only, and are independent from http://free-financial-money-magazine.blogspot.com. No liability is assumed for any inaccuracies in the information or for the content of any linked websites. No endorsement or approval of any other products, services or information is expressed or implied by any information, material or content referred to or included on, or linked from or to this website. No liability is assumed for incompatibility, non-suitability, viruses or other destructive/disruptive components on or from such websites.