from Zero Hedge:
Call it “X Date”, call it “D(elinquent/efault)-Day”, call it what you
will: it is simply the day past which the US government will no longer
be able to rely on “extraordinary measure” to delay the day of
reckoning, and will be unable to pay all its bills without recourse to
additional debt. It is not the day when the US defaults, at least not
defaults on its debt. It will begin “defaulting” on various financial
obligations, such as not paying due bills on time and in full, but since
this is something Europe’s periphery has been doing for years, it is
hardly catastrophic. It will hardly be pleasant, however, as some 40% of
government obligations go unfunded, and the US is converted to a
walking, talking bankruptcy as unsecured claimants rush to demand
priority, as the market, long living on hope and prayer, realizes that
only now is it truly without a cliff under its feet, and most
importantly, as suddenly $500 billion in maturing debt between February
15 and March 1 finds itself in a very, very precarious position.
Read More @ Zero Hedge.com
Call it “X Date”, call it “D(elinquent/efault)-Day”, call it what you
will: it is simply the day past which the US government will no longer
be able to rely on “extraordinary measure” to delay the day of
reckoning, and will be unable to pay all its bills without recourse to
additional debt. It is not the day when the US defaults, at least not
defaults on its debt. It will begin “defaulting” on various financial
obligations, such as not paying due bills on time and in full, but since
this is something Europe’s periphery has been doing for years, it is
hardly catastrophic. It will hardly be pleasant, however, as some 40% of
government obligations go unfunded, and the US is converted to a
walking, talking bankruptcy as unsecured claimants rush to demand
priority, as the market, long living on hope and prayer, realizes that
only now is it truly without a cliff under its feet, and most
importantly, as suddenly $500 billion in maturing debt between February
15 and March 1 finds itself in a very, very precarious position.Read More @ Zero Hedge.com
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