HometownBell County


What a default would mean for Central Texas

Posted at 6:43 AM, May 24, 2023
and last updated 2023-05-24 07:44:29-04

“Anybody who thinks a default is an option is ignorant. We gotta prevent that from happening and the way you solve these problems by negotiating and doing compromise,” said Former U.S. Representative Will Hurd.

Time is running out for the country to raise the debt ceiling but no deal has been made.

“This is probably the closest I can remember to the default,” said Local Veteran Damon Cleaton.

If that doesn’t happen by the end of this month, then U.S. will from default its debt meaning economic chaos for many including Central Texans.

“It’s almost like the pandemic. In fact I’ve called the financial pandemic,” said Ray Perryman with the Perryman Group.

Thousands of soldiers and army officials at Fort Cavasos could miss out on a paycheck this month.

Cleaton said it’s a major source of stress for active military.

“During those situations the military was still being funded. With your civilian employees it was a different story. Essential personnel would still have to work nonessential personnel but Would have to stay at home,” said Cleaton.”

Financial expert Perryman said defaulting could also impact Veteran services, Social Security, Disability and more.

“They’re probably gonna try to manage in touch away it affects a few people that can. But that would be potentially some people who are contractors that have contracts with small businesses and those kind of things. Dardy asking agencies what type of payment they can defer without getting in trouble,” said Perryman.

Perryman said the US dollar is one of the most widely used currency in the world, which means a Default would also affect several other countries.