Many of us have defaulted on our bills and been forced to face decisions on how to balance our credit limits or bank accounts. In those situations where our accounts have crossed into the red, some have witnessed firsthand what happens to their possessions once creditors have taken action on default loans. In an article By Charles Riley on CNNMONEY.com (http://money.cnn.com/2011/06/28/news/economy/ron_paul_bankruptcy/index.htm) Ron Paul notes the options of how filing "bankruptcy" could affect the US economy, "Of course, sovereign nations can't declare bankruptcy the same way a corporation might. Instead, the government would be unable to fulfill its obligations, and would stop making payments on its debt, resulting in a default".

                While I have never owed anywhere near 14.3 trillion dead presidents to anyone, I would have to say my creditors were fairly unforgiving and relentless in their collection efforts for what little I did default on. Assuming that investors with this level if money out there hanging is the balance are minutely as unremitting one would begin to think that Washington Lawmakers would have gotten to the business of fixing this issue long before now. Many wonder what the hold is on action.

                In another article on the CNN Money website by Angela Wu, Matt Slaughter, a professor at Dartmouth's Tuck School of Business observes: "There's no historical precedent for what happens if the US defaults on part of its outstanding debt obligations". (http://moremoney.blogs.money.cnn.com/2011/07/16/debt-ceiling-your-finances/). No Historical Precedent??!! Now I'm not sure if that makes any of you wonder how America and Her lawmakers have gotten us into this situation, but it certainly makes even the least savvy financial bookkeeper cringe to think of the long term financial implications of these lawmakers letting their agendas and politics get in the way of making a decision to curb this issue.

Let's consider it this way: You sit at the dinner table with your husband/wife, looming in front of you are numerous bills that you find out have simply gone unnoticed and unpaid for whatever reason. In this pile of delinquency notices, you also notice your credit card statement…Your significant other suggests a possible remedy to your financial woes and opens the credit card bill mentioning the possibility of raising your credit limit. He/She makes the call and your creditors inform you that your limit cannot be increased, now what?  The first obvious answer is to decide what's getting paid (some are suggesting debts such as military personnel pay), and what will have to wait (most likely government funded programs, like medicare or unemployment). This would inevitably lead to lower credit score ratings, default judgments, and if the issue persists, loss of services/assets. Some of us recognize the obvious higher interest rates and issuing "repossession" that is possible.

Maybe the idea of a "Storage Wars" (see A&E for show time) is a little farfetched here in this scenario. The highest investor or bidder may have to wipe the salivation from their lips for now. But we have to agree that there issome lack of foresight that is being witnessed to have brought an entire nation to the brink of bankruptcy and to the tune 14.3 trillion dollars. That being the case we must consider why these politicians are being allowed to blur agendas and politics with lawmaking to avoid setting the wrong kind of historical precedent. In a nation where interest rates are already too high and the richest CEO's get the biggest tax exemptions, not to mention the cost of wars, aide and financial waste, maybe it's time for the lawmakers of the Land of the Free to consider home to financially maintain the Home of the Brave.

  

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                                                                                              Article by Y. Mosys