Yellen's warning about the debt ceiling.

OK, so Janet Yellen warns that if the congress doesn't increase the debt ceiling by June, the US could default on it's $31 trillion national debt. The warning was dutifully reported on by the media in appropriately solemn tones. Janet descends like a goddess from on high and declares this epiphany.

Is anyone curious about the timing of this warning? Wy weren't we talking about this debt limit when Biden and his congress crammed through the $1.7 trillion spending debacle just one month prior in the lame duck democratic congress?

Is it best if we just default in 2023 and get it over with? Maybe it would be doing our children and grandchildren a huge favor! Or should we just wait until our debt is, say, $60 trillion?

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Muthafukajones · 46-50, M

What happens if we go into default?

irishmolly72 · 56-60, F

@Muthafukajones Holders of treasury debt take a haircut. The dollar's status as the world's reserve currency takes a big hit. Financial markets panic. Severe recession follows. The usual stuff.

Monetize the debt through Fed purchases and the default takes the form of Jimmy Carter-style inflation. This form of default is effectively a tax on anybody who isn't prepared for significant unexpected inflation. The public clamors for an end to inflation. Severe recession follows. The usual stuff.

Pick your poison.

Muthafukajones · 46-50, M

@irishmolly72 let’s do it!

SomeMichGuy · M

@irishmolly72 If you don't like our debt NOW, you'll REALLY hate it after a hard default.

irishmolly72 · 56-60, F

@Muthafukajones Or we could just be sensible and start reducing the debt.

Muthafukajones · 46-50, M

@irishmolly72 how about we just tell our biggest creditors to go away? What are they going to do about it??

SomeMichGuy · M

@irishmolly72 YES, by reinstating the taxes cut by Trump, for instance.