Shutdown Day 9, October 2013

In 1935, Cret designed the Seal of the Board o...
In 1935, Cret designed the Seal of the Board of Governors of the Federal Reserve System. (Photo credit: Wikipedia)

My layoff has ended; however here is the most important quote of the day, as I see it.

” A growing number of Republicans appear to have convinced themselves that defaulting isn’t actually that big of a deal,” Source , Slate.com

I must make it  clear: I am nonpartisan and I am not taking sides on the issue. But the truth is that a U.S. financial default has never happened in the history of the U.S.

I do know one thing when it comes to the micro economics (personal finance) point of view: it is never good to tell your bank, or anyone you owe money to that you can’t pay them this week.  There are only three options and they are not good for the debtor:

1. You will have to choose among your creditors which one you will pay and which not.

2. You will pay only the most important debt, because not all debt is equal.

3. It will cost you more-one way or another.

If the United States becomes delinquent on its Treasury debt it is not only wrong but it is deceitful.  This is not about not having money to pay but about a bipartisan domestic argument.  I truly doubt the debt ceiling will not be raised. As you may know by now Janet Yellen was nominated as the next chair of the Federal Reserve,  She will be the first female in U.S.  history.

Best regards,

Felix A. Montelara

Author: Potential Millionaire

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