Well, howdy there internet people, let's bow again. So today we're going to talk about default.

We're going to talk about the idea of the United States defaulting on its loan payments.

We're going to do this because there's a bunch of questions about it

because there are people in Congress who seem to think it's a good thing.

So we're going to kind of go through a bunch of the questions.

We're going to talk about the constitutionality of it, a whole bunch of stuff. But before we do any of that, I want to

talk about what happens if the United States defaults, because I think we need some perspective on what we're talking about here.

We're going to use a very middle of the road chain of events. There are doomsday scenarios associated with the U.S. default. I think

they're alarmist. But a middle of the road estimation of what will occur if the United States defaults

and then shortly thereafter makes good on its loans. What you will see happen is interest rates go up. The value of the dollar

go down, which means your purchasing power goes down, which means inflation goes up, which means you find it

harder to make ends meet. Your standard of living declines substantially.

That's a middle of the road estimate.

Troians of dollars in economic damage.

Okay. dollars in economic damage.

Okay, so that's what we're talking about. That's what we're dealing with as far as outcomes here. When you hear them say, oh, they're

holding the budget hostage, no. They're holding your financial stability hostage.

They're holding you, your way of life, your standard of living. This isn't something

where some plucky upstarts are sticking it to the man up in DC.

Their leverage is you.

Do not forget that.

Okay.

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