what happens if government shutsdown and hits debt ceiling?

Should the Federal Government of the USA shutdown; and the Debt Ceiling isn't increase it means that we lose our credit standing (already down from the last time Tea Party acted). This from a personal sense; you and all that have credit cards, car loans, mortgages and other debt will be paying a higher interest rate.

In addition; it means that current payment plans could plausibly run into conflicts. Do we pay with the trillions of dollars on hand to our debt to China, or feed the troops in battle around the world? Do we pay back China, or provide Social Security to the elders of our nation?

What happens furthermore are the shutdown to TSA and Aviation System; flights cancelled or delayed. Hotels, Rental Cars, theme parks and other tourist attractions lose money, and local business associated.

Then there is the FDA, those who make sure our consummation of food, meets a certain standard. The EPA who measures the quality of water will cease. Then there is federal law agencies that will not be of service: FBI, NSA, CIA, and others particularly the Border Control.

Meanwhile those who elected to shutdown the government, will continue to be paid to do nothing.

First of all, not raising the debt ceiling does not mean the government stops spending money (or that raising it means we spend even more).

But, be that as it may, if we go into default--

1. Slash government services

2. Higher interest rates on our loans (making our debt even more)

3. Stock market freakout with probable global consequences

4. Run on money markets

5. Credit agencies could *permanently* downgrade US debt, and the impasse could have long-standing effects on America's economic standing in the world, as well as the dollar's status as the world's reserve currency.

Right now there is a bill in House to fund the military. In the past we have had bills to keep essential services but you can rest assured the Senate is not going to pass a bill to just fund the military. This time a shutdown is a shutdown.