“Default by the United States is unthinkable. This is not a new or partisan judgement; it is a conclusion that has been shared by every Secretary of the Treasury, regardless of political party, in the modern era. A default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover.” -US Treasury Secretary Timothy F. Geithner.
I obtained this quote from a Washington Post photo slideshow titled “Debt Ceiling Doomsday Scenario”. Geithner wrote this in a letter to Capitol Hill in April, according to the slideshow.
The slideshow outlines the possible outcomes of default including not being able to pay government employees including veterans of war and the elderly.
Another interesting point in the slideshow is, now that the US is facing default and may be unable to fulfill fiscal obligations, it could now be seen as a “risky investment”-Jason Reed, Reuters. This could seriously affect the US’s reputation among investors other countries, etc.
Also, according to Andrew Harrer from Bloomberg, the US dollar could devalue.
The slideshow goes on for pages with the potential horrors of what could happen if we default. It opened my eyes to many more negative and serious outcomes than I was aware of. This is pretty unsettling considering August 2nd is two days away…