What if… the Republican Party was given an incentive to push through an agenda that was certain political suicide – martyrdom! Realize the destruction of our government as we have known it for all of these two hundred and thirty-five years by killing the democratic processes!
What if… we actually defaulted on the deficit and were forced to re-align the government because we were essentially in bankruptcy. Would the Federal government be subjected to an international court wherein the United States would have to liquidate assets to pay its creditors?
Under Chapter 7 for businesses the following would occur…
When a troubled business is badly in debt and unable to service that debt or pay its creditors, it may file (or be forced by its creditors to file) for bankruptcy in a federal court under Chapter 7. A Chapter 7 filing means that the business ceases operations unless continued by the Chapter 7 Trustee. A Chapter 7 Trustee is appointed almost immediately, with broad powers to examine the business's financial affairs.
The Trustee generally sells all the assets and distributes the proceeds to the creditors. This may or may not mean that all employees will lose their jobs. When a very large company enters Chapter 7 bankruptcy, entire divisions of the company may be sold intact to other companies during the liquidation.
Fully secured creditors, such collateralized bondholders or mortgage lenders, have a legally enforceable right to the collateral securing their loans or to the equivalent value, a right which cannot be defeated by bankruptcy. A creditor is fully secured if the value of the collateral for its loan to the debtor equals or exceeds the amount of the debt. For this reason, however, fully secured creditors are not entitled to participate in any distribution of liquidated assets that the bankruptcy trustee might make.
In a Chapter 7 case, a corporation or partnership does not receive a bankruptcy discharge—instead, the entity is dissolved. Only an individual can receive a Chapter 7 discharge (see 11 U.S.C. § 727(a)(1)). Once all assets of the corporate or partnership debtor have been fully administered, the case is closed. The debts of the corporation or partnership theoretically continue to exist until applicable statutory periods of limitations expire.
The ramifications of a default on the deficit are many and far flung. Immediate agencies and departments of consequence…
- Entitlements – listed here, will stop without notice!
a. Government sponsored social programs – non-existent (SSA, Medicare, Medicaid, and Unemployment)!
b. Federal Assistance – FEMA, gone!
c. TSA – No more!
d. Federal Courts and all Law Enforcement Agencies – severely hampered!
e. Agencies that protect our food, water, regulate businesses – no more!
- No standing Army.
a. All five branches of our Armed Forces and the National Guard would be reduced or eliminated – servicemen and retirees would not get paid!
b. All foreign Military bases will close.
c. Armed Forces equipment – rusting in parking lots, or sold at auction!
- No Federal Agencies – all federal workers would be eventually laid off, or furloughed.
- No Air Traffic Controllers – no incoming, or outgoing flights except in emergencies.
- State and Local governments would receive no subsidies for infrastructure repairs, education, or other programs supported through federal subsidizing.
The ‘Domino Effect’ to the economy can only be described as chaotic with a rush on the Banking system, grocery stores, and any form of support supplied to the public.
What would drive a responsible Federal government body elected by the people to disregard their legal mandate to serve the people? Surely, every individual responsible for the destruction of the government of the United States could never be re-elected, to that, or any other office. Obviously, those individuals would be ostracized by the people they represented in Congress. None of these individuals could ever hope to have a job in America again, live in the neighborhood where they previously lived; and yet, knowing all of this – they do the unthinkable!
What if… the Republican Party’s elected officials have been promised an astronomical sum of money along with relocation to do the unthinkable? Would you do it… for five million dollars and a lifetime promise of support in making the readjustment to live outside of scrutiny – for any amount of money?
In a democracy, silence is not golden; it is condonance in the face of injustices; it is fear, where the thought of reprisal fosters control – Rodney A. Davis