[mikemike]

The news keeps pounding the story that default has never happened before. In actuality, it seems to have happened several time before.

“You may not know this, but the U.S. has actually defaulted a number of times already,” writes Chris Mayer this morning. He cites five instances:

• 1779: The government was unable to redeem the continental currency issued during the Revolutionary War

• 1782: The colonies defaulted on the debt they took out to pay for the war

• 1862: During the Civil War, the Union failed to redeem dollars for gold at terms stated by the debt contracts

• 1934: FDR defaults on the debt issued to finance World War I, refusing to redeem it in gold. The dollar is devalued 40% against gold

• 1979: A bureaucratic snafu results in interest going unpaid on some small bills.

“With the exception of 1979,” Chris says, “which was mostly due to administrative confusion -- the U.S. simply ran out of money each time. The end result was the dollar had to be devalued. Meaning it lost significant purchasing power.

Don't Get Caught Holding Dollars When The U.S. Default Arrives - Yahoo! News

[shooz]

These "defaults" were not caused by one parties desire to destroy the other party in order to position themselves for the next election.

I thought you would notice that.

[Ratmagiclady]

These "defaults" were not caused by one parties desire to destroy the other party in order to position themselves for the next election.

I thought you would notice that.

Yeah, and they don't care what even once again holding the entire economy hostage to their uber-rich masters does to the real economy and real Americans, as long as they can delay, keep raking in the bucks, and tell their base it's all 'the liberals' ' fault when the same damn failed supply-side policies keep screwing all of us.... and the uber-rich keep saying 'Give us more and more, and maybe we'll create these jobs we never have when you give us our way....'

All they want is more power and more money, and it's not for the regular people, even if they scapegoat all the minorities they want to, or call it what a 'Christian Nation' does, or any of it.

We've gone from record surplus to record debt *because* of these Bush tax cuts for the wealthy, and it's done nothing but damn near ruin us *so* far... and they want to do even more of the same and call it someone else's fault if what they demand doesn't suddenly start working for anyone but Wall Street.

[mikemike]

Over the weekend the president has said "NO!" to bipartisan, bicameral plans for a 2 step approach and a plan to buy 6 months of more negotiating time from Boehner. I don't know what Obama's game plan is thinking that defaulting will win him the next election, but yes he is very reckless for trying to play this for his own political advantage. Honestly, I don't know how he expects to gain from it politically but he must have a plan or be extremely foolish.

[shooz]

At least that's what the right wing press said.

What union did you say got TARP funds mike?

[mikemike]

What union did you say got TARP funds mike?

The UAW's VEBA seems to have made out like bandits.

[shooz]

Prove it.

Wallstreet got $1,000,000,000,000+

How much did you say VEBA got?

[newarts]

..... to buy 6 months of more negotiating time from Boehner....

Six more months of republicans backing out of every agreement made? It is clear by now that no revenue increases will be permitted if the underlying logic can be twisted into a "tax increase".

I am glad that Boehner pulled out of the last deal if it would have caused a default on social security obligations; after all, social security represents debt obligations to ourselves that are just as binding as debt obligations to other bond holders.

Cuts to medicare expenditures would have the immediate effect of increasing medical costs to the population - which would decrease what the public could spend on other goods & services (thereby further depressing the economy) and/or making the workforce less healthy (thereby further depressing the economy).

[jeffkrol]

GOLD STANDARD defaults do not count in the current state of the dollar.. FIAT defaults are strictly voluntary and S..T..U..P.. I..D.........

[jeffkrol]

Over the weekend the president has said "NO!" to bipartisan, bicameral plans for a 2 step approach and a plan to buy 6 months of more negotiating time from Boehner.

As he should have.......... it is ridiculous.

[mikemike]

How much did you say VEBA got?

Didn't they end up owning 50% and 40% of Chrysler and GM respectively. A few weeks ago, treasury admitted that we, the american people, lost $1.3 Billion on the Chrysler deal alone. Thats money that went into the pockets of a relative handful of pockets.

Wall street didn't deserve the money any more than the unions, but at least they had the decency to pay it back with interest.

[shooz]

You didn't answer the question.

[mikemike]

You didn't answer the question.

I never gave a specific amount because I can't say with certainty, I am not privied to that information and the way that it was done purposefully obfuscates the exact net value amount of tax dollars spent on bailouts for both Detroit and Wall Street.

Suffice it to say, in both cases the bailouts overly generous and disgust me.

[deadwolfbones]

So in other words, the US has never defaulted in the modern era.

Good to know, thanks.

[jeffkrol]

Technically the US "can't run out of money" period..


no argument on any side of the economic schools...

The rest is debatable.......