$30 Trillion Dollars is The Tipping Point – Search (bing.com)
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Story by Irina Ivanova
The U.S. may be only a matter of weeks from defaulting on its debt,
an unprecedented scenario that government officials have variously
described as “unthinkable” and “catastrophic.”
With Republicans and Democrats remaining at an impasse for now,
economists are examining the potential economic fallout if the situation
comes to a head and the U.S. fails to make some payments.
In the event of a full-fledged debt default:
the impact would be felt by anyone expecting funds from the government,
whether a Social Security check, SNAP payment or government bond payout.
But the impact wouldn’t be felt equally across the nation, Moody’s Analytics
chief economist Mark Zandi said in a report this week.
“Most state economies will be hit hard if there is a debt limit breach, although the economic pain varies,” he and coauthors Adam Kamins and Bernard Yaros wrote.
Washington, D.C., where 1 in 4 jobs are tied to the federal government, would be
hardest hit, becoming the “poster child” for a financial disaster, they said.
BONUS: Looks like this is another fine mess you got us into – Search (bing.com)
States with large federal facilities, such as national laboratories or military bases, would
be next in line. That includes Hawaii, which is home to the United States Pacific Command and to 11 military bases; Alaska, with vast federal land holdings; and New Mexico, home to Los Alamos National Laboratory.
“While the public sector typically serves as a stabilizing force,
in the case of a breach it supercharges its economic fallout,” according to Moody’s.
Also vulnerable are regions that rely heavily on federal spending, including those with defense contractors. “Professional services firms suffer, hurting white-collar support firms in and around the Beltway, particularly Northern Virginia,” Moody’s said. “Aerospace is also hurt, impacting states including Connecticut, Kansas and Washington.”
Even a short debt ceiling breach, in which the government defaults for less than a week before lawmakers raise the government’s borrowing limit, would likely push the economy into a recession, according to Moody’s. In this scenario, 1.5 million people would lose their jobs, pushing unemployment from its current rate of 3.4% to 5%, while the nation’s gross domestic product would shrink by 0.7%.
Moody’s also assesses the potential damage from a default lasting several months,
an outcome it calls “cataclysmic.” The federal government would have no option but
to slash its spending by about $150 billion. “As these cuts work through the economy,
the hit to growth would be overwhelming,” Moody’s said.
These states would suffer most if the U.S. smashes the debt ceiling
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‘What difference at this point does it make?’ ~Hillary
13hours Secret Soldiers : Free Download, Internet Archive
“The economic downturn that would ensue would be comparable to that suffered during the global financial crisis,” with nearly 8 million jobs lost and the unemployment rate rising to 8%, according to the financial research firm. In this scenario, several states would suffer disproportionately, with Moody’s estimating that unemployment would top 9% in Alabama, Illinois, Ohio and Mississippi, while shooting up to nearly 11% in Michigan.
The turmoil would likely depress stock prices by nearly 20%, vaporizing $10 trillion
in household wealth held in 401(k) plans, pension funds and also brokerage accounts,
according to Moody’s. The cost of borrowing for households and businesses would soar.
Because of the enormous economic fallout of a debt default, it’s worth noting that Moody’s considers such an outcome highly unlikely. And if there is a breach, it’s likely to be short.
“But even a lengthy standoff no longer has a zero probability,” the analysts said.
“What once seemed unimaginable now seems a real threat.”
DOWNTOWN SAN FRANCISCO’S COLLAPSE REFLECTS THE CITY’S DECAY
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Kamala Harris Something Wr0ng With Joe Biden – Search (bing.com)
US cities brace for busloads of migrants as immigration rules change.
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Thousands lined up at the US-Mexico border anticipating the end of Title 42.
However, the Biden administration rolled out new measures requiring migrants
to apply online or seek protection in the country they passed through.
As New York City considers a price increase for rent-stabilized apartments,
TikTok star asks strangers what they pay in rent — and for a tour of their apartment,
one TikTok host has struck a nerve. Caleb Simpson asks strangers how much they pay
in rent and then brings his more than 7 million followers on a tour of their apartments.
Simpson joins CBS News to discuss his videos.
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House Republicans Say Biden Family Received Millions From Foreign Contracts
NPR reports that House Oversight Chairman James Comer laid out the allegations on
May 10. He claims the panel is in possession of bank records indicating that the Bidens, including Hunter, received millions of dollars from people connected to Romania and China. He claims the panel is in possession of bank records indicating that the Bidens, including Hunter, received millions of dollars from people connected to Romania and China.
We’re pretty confident that the president was very knowledgeable of what
his family was doing, James Comer, House Oversight Chairman, via press conference.
The White House denied the claims. Congressman Comer has a history of playing fast
and loose with the facts and spreading baseless innuendo while refusing to conduct
his so-called ‘investigations’ with legitimacy,
Ian Sams, White House spokesperson for oversight and investigations, via statement.
He has hidden information from the public to selectively leak and promote his own hand-picked narratives as part of his overall effort to lob personal attacks at the president and his family, Ian Sams, White House spokesperson for oversight and investigations, via statement. Abbe Lowell, Hunter’s lawyer, also denies the allegations.
Now comes Rep. Comer who has spent the last five months making wild predictions without proof, asking inane questions out loud and falling short every time – including today, Abbe Lowell, Hunter Biden’s attorney, via statement. Today’s so-called ‘revelations’ are retread, repackaged misstatements of perfectly proper meetings and business by private citizens, Abbe Lowell, Hunter Biden’s attorney, via statement.
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