I'm concerned; What will the effect of a US Default have on our hopes for this game?
Disclaimer: not a specialist, just information junke. TLDR version is I think FD will be fine, but in any case we all have difficult times ahead.
Well, it must be explained what default actually means here. It means that US government can't borrow money anymore (their debt ceiling is limited in law) and in result it will have sometime in future (1 - 2 months) to choose either refinance older debts or not to pay pensions, wages, costs of infrastructure. Either way it is disastrous for economics, as government is still biggest spender which keeps US economy afloat. If it can't refinance it's debts, it's rating takes a serious hit, and borrowing money starts to become very expensive. More than 7% interest for 5 year bonds are usually thought as death kneel for any modern country, with unease kicking in with 6%.
In long term means it's means slow, painful and chocking death of US economy, which is biggest market in the world. You can figure out further consequences yourself.
** Speculation **
For FD it could make it's life difficult in various ways - first, it's shutting down of gaming markets. While there could be ongoing sales for years, if situation doesn't change not everyone willing will be able to buy ED, and in result, it can cause financial problems for further development after initial release. It could be also harder to refinance it's debt if such need rises. There's nothing to cause sudden danger however, as company seems to be in good health and with right price policy and clever marketing they can weather the storm.
Yes, that means I believe we will see initial release in any scenario. Future is in question, but that won't be only FD problem.
** End of speculation **
However, if they even reach agreement (there are actually enough votes, problem is with House Republicans leadership who doesn't want to go down with the ship of Tea Party) I kinda see such scenarios repeating all the time till elections in November next year, as House Republicans fight for survival. For that they will try to use their threats to sabotage economy as way to get things their way. They will fail, but they are cornered, so this kinda make this much worse.
I noticed on a graphic in this news story that the American debt started to really ramp up at the onset of the wars in Afghanistan and Iraq. You could say that the sub-Prime debarcle didn't help but that seems to have add just another trillion(!?) to the debt.
However according to Wikipedia the American budget for the military is $680 billion so where did those trillions go? It can't be all servicing debt can it?
They feed their military a lot more money during their wars than their official budget lets on.However according to Wikipedia the American budget for the military is $680 billion so where did those trillions go? It can't be all servicing debt can it?
Thus far, for a long, long time, the US has always simply raised their debt limit to get out of problems like these, but it appears that their politicians are realising that they cannot do so forever...
They feed their military a lot more money during their wars than their official budget lets on.
Thus far, for a long, long time, the US has always simply raised their debt limit to get out of problems like these, but it appears that their politicians are realising that they cannot do so forever...
Republicans of course suggest to gut all government services and destroy middle class completely increasing taxes for them. Not that US gov. services don't need overhaul (every country has to do that time after time) but they want to destroy them eventually. No regulations, no support for poors, nothing.
The major world view in the US is still materialistic, whereas most European countries strive for humanism (where one of the main tasks of a civilised society is to support its weakest members). The world view in the US is slowly changing, but the republicans hold on to the materialistic values the strongest.Republicans of course suggest to gut all government services and destroy middle class completely increasing taxes for them. Not that US gov. services don't need overhaul (every country has to do that time after time) but they want to destroy them eventually. No regulations, no support for poors, nothing.
The world view in the US is slowly changing, but the republicans hold on to the materialistic values the strongest.
The major world view in the US is still materialistic, whereas most European countries strive for humanism (where one of the main tasks of a civilised society is to support its weakest members). The world view in the US is slowly changing, but the republicans hold on to the materialistic values the strongest.
I'm concerned; What will the effect of a US Default have on our hopes for this game?
I agree, but the problem is when it is the _only_ world view that a person believes in and everything else becomes "evil".There's nothing wrong with materialistic POV
I agree with this as well. We have our own problems with a certain populistic party in Finland... :/Radical populism polluting politics these days make me ache for old school corrupt officials who knew that being stupid will end up them being out of office.
...Either way it is disastrous for economics, as government is still biggest spender which keeps US economy afloat....
Probably nothing whatsoever, it is very difficult to see how the US government problems could effect this game.
For a start, the US Constitution forbids defaulting (see the XIV amendment, section 4 "The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned."). If the US government attempts to default on their debts they are opening the door to impeachment, so it's very unlikely.
This is an argument about funding Obamacare (Patient Protection and Affordable Care Act), not servicing the debt.
At least that's how I see it...