Debt ceiling crisis and you

[geo in mi]

Without getting all political, how do you think the current debt crisis and default issue will affect you personally as a homesteader, if it comes to that? SHTF scenario? Are you prepared? What could it cost you? (For me, it's a SS check.....) Other than that, I'm probably not affected directly unless inflation comes into play.

Can this subject be talked about without politics???? If not, than shut it down....

geo

[brosil]

I doubt that you will notice unless you are a federal employee or federally employed contractor. The U.S. actually brings in enough to pay it's official obligations( T-bills, interest,SS,VA and the like). It would probably stop foreign aid , a lot of the Interior Dept, R & D expenditures and other discretionary spending. That's not what the Pols want you to know. They want you scared. You're easier to manipulate that way.

[Explorer]

Whether or not it affect us will depend upon the credit rating agencies. If the rating is downgraded, then credit card interest, new loan rates, adjustable mortgages and he like will go up. Depending on how long it takes to resolve, when it is over the may come back down. Again they may not.

[Belfrybat]

I was just getting back on my feet from the 2008 financial "crash". I had to go on early SS to make ends meet, so now my income is half through SS and half through sales of Prayer Beads. When the economy tanks, Prayer Bead sales go down by 3/4th to half. So if SS checks stop, or are greatly reduced, and business falls off any more, I'll be in a world of hurt. I do have a small IRA that I can tap into but that will take another big hit with the increased financial instability, so my future, financially speaking, is pretty unstable.

I'm prepped in that I have $$ in savings to last 4-5 months, maybe longer, and food preps will last 10 - 12 months with the addition of fresh items and dairy. The garden is history due to the drought and heat, so my anticipated harvest to supplement preps is nil this year.

Gee, I'm a gloomy gus this morning. But thems are the facts of life right now. OTOH, my house is paid for and utility costs are fairly low compared to what others use, and if necessary I could hunker down in a couple of rooms to save on heat/ cooling costs. So things are somewhat grim but certainly not hopeless.

[Ramblin Wreck]

Inflation (or stagflation) with rising interest rates could effect us all.

[julieq]

We're relieved that we just found a home on acreage with a larger shop for our small business and actually got the fixed interest rate locked in. We do expect interest rates to rise. If it appraises OK (hard to tell in this depressed real estate market), then we're set to move the end of Aug. SSD is the bulk of our income as a family of three, so that's been a worry. We have lots of preps though and no debt except our upcoming house payment, which will pretty much be covered by renting the shop back to our small business.

[BarbadosSheep]

The government has no plans to stop social security payments, in spite of what they want us all to believe. They are only saying that to scare the American public into buying into the plan to go even deeper in debt.

If you had only enough money each month to pay the minimum payment on all of your credit cards, what would you do? Would you continue to give away money to people? Or would you tighten your belt and work on paying down your debt? If the average person ran their household like the government runs theirs, they would be bankrupt. We as a government need to stop wasting money!

Just a few days before this latest debt crisis hit, they were announcing on the local news how the U.S. government is giving the State of SC $300 million dollars to help people who were facing foreclosure. Um...that's all nice and everything, but if they can't pay their OWN bills, why are they working on helping people pay theirs? Where were they when I lost my house 7 years ago? No one was passing out free money then!

The government needs to clean house. Stop foreign aid, especially to Countries that hate us. Clean house and get rid of half of the federal jobs. Subcontract services to private companies instead, ones who actually work in an effective and efficient manner without wasting billions. And furlough all federal employees (except military) for a week, unpaid. Most States have done this to state employees to get out of temporary financial crisis...why can't the federal government do that?

[PhilJohnson]

I have a stupid ARM, even if the debt crisis is resolved I expect the US to loose it's triple AAA rating. My payment is very low (under 200 bucks) but I'd hate to have to give the bank any more for interest than I have to.

[kirkmcquest]

Won't effect me beyond inflation, which will go up anyway. In the long run, a default will mean a forced decrease in spending which will be the best possible thing for our long term prosperity.

[Forerunner]

"We must not let our rulers load us with perpetual debt. We must make our election between economy and liberty or profusion and servitude. If we run into such debt, as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our calling and our creeds...[we will] have no time to think, no means of calling our miss-managers to account but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow-sufferers... And this is the tendency of all human governments. A departure from principle in one instance becomes a precedent for[ another]... till the bulk of society is reduced to be mere automatons of misery... And the fore-horse of this frightful team is public debt. Taxation follows that, and in its train wretchedness and oppression." Thomas Jefferson

What more need be said ?
It's already affected all of us in ways we can't even fathom, beginning hundreds of years ago.

[geo in mi]

I think it was an old James Dean movie where the guy was showing how brave he was by driving towards the cliff, planning to jump out just as he got to the edge. Trouble was, he got his belt, or sleeve, tangled up in the window crank, and went over with the car. I can't help but think this is happening in Washington these days.......

I think, as a personal issue, I've been pretty lucky in staying one step ahead of the alligator. But this one may take a chunk.......

Like julieq, I changed my personal debt structure earlier, thinking that interest rates might go up in the near future. Glad I did, now. I think there would be a huge outcry, and backlash, if SS checks don't arrive. BUT, I can see that scenario happening for maybe a month or so, before things settle down. Don't want to upset the Christmas shopping sales, you know....

And, I am interested in seeing just what gov. spending cuts will be made. After all, a lot of those cuts will involve job loss......

geo

[InvalidID]

I was just talking to a buddy about this yesterday. We decided it would be a pretty sweet thing if government shut down. There is a lot of bureaucracy getting in the way of small business in the area that would simply cease to be. A lot of new jobs would be created if that stopped, even for only a few months.

[BruceC]

I saw a congressman on PBS news say there hasn’t been any inflation for 30 years… so it won’t matter what prices are, there won’t be inflation (sarcasm)

I see no direct consequence to me but only time will tell.
Being a saver not a borrower… the debt has made me mad starting in ’93 when it was only $3T and became a political issue in the presidential campaign. Now the debt appears absolutely paralyzing.

[Minelson]

I am so happy that we decided to look into "downsizing" when hubby lost his high pay 15+ year job 2 years ago. We were so lucky our bigger, newer, very pretty homestead sold in 3 days. We purchased the place we are in now and dropped our mortgage payment from $1400 to $550 a month. It's the same amount of land but much older, needs lots of work and doesn't have a lot of the conveniences of the other place (like dishwasher, insulated outbuildings, attached garage, working doors, working windows lol!). As it turns out we love it here! It's much more secluded and has a screened in porch with a beautiful view. It's a lot more work but totally worth the stress of not having to make that big monthly payment.

[FarmboyBill]

I dont know if this is polotics or not, But it likely is. It seems to me, that one side wants to cut spending by doing this and this and this. The other side wants to cut spending by doing that and that, and that. Seems to me that if the P party candidates, and the Independants, ect could get to gether and say, HEY, we like both ideas. Lets do both.

[Raven12]

It will screw me over. I'm looking to buy property and the last thing I am looking forward to is an increase in interest rates.

[plowjockey]

If our Govt. "shuts down" and could not send out good checks, to anyone, it would not matter how "prepared" one thinks they are, unless they live in a fortified cave, with a lifetime supply of food, water and medicine, etc. they will not be prepared enough.

Those who "don't have", will simply start taking, by force, if necessary, from those who "have".

Anyone who thinks a a real, extended, Government shutdown, with millions of hungry, desparate people, will be anything less than armageddon, is only kidding themselves.

The most important thing to stock up on, will be ammunition.

[seagullplayer]

Too bad it is not deer season. With no conservation officers working, it would be a lot easier to fill the freezer! lol

Wait a minute, maybe that makes it deer season...

[wolfwalkerpa]

Not sure how it will affect me..But i do know if i have 10.00 and spend 20.00 I'm in big trouble.

[rambler]

As a farmer that deals in very big numbers on my costs and expenses, and typically gets very little for myself between those 2, it will be quite a ride. Inflation, the effects on markets, the effects on fuel, fert, and iron costs will likely be very bad for me.

This affects your food and feed costs as well, if you buy any of that stuff. Heck, food prices might go down, but 5 years from now the effects will _not_ look so good as things derail......

Not sure how we should compromise on it - we are spending more than we can hope to make from taxes, something has to give. Painful now or painful later, we always seem to choose thr most painful but later option...... Humans! Sheez.

--->Paul