The cost of the 2008 meltdown approached 13 trillion dollars – or almost the entire amount of the deficit Washington is so worried about now. So in the name of a 3-4 trillion “Grand Bargain” or the extra cost of Obamacare, they are pushing us toward a 13 trillion dollar calamity. Most authoritative sources agree that a failure to raise the debt limit will result in a recession of equal or greater magnitude than the 2008 meltdown. Therefore the 13 trillion is probably a low estimate. Then there is the adverse impact of selling Treasuries in the future. These constant threats to the credit of the USA will eventually drive up our borrowing costs and drive many investors away as the world ponders when we will actually default for real after some many close saves. We now pay 220 billion in interest. That will rise if Treasuries are deemed to be a risky investment due to our government’s lack of responsibility.

A recent article about the IMF in today’s LA Times stated, “”Failure to lift the debt ceiling would be a major event,” said Oliver Blanchard, the IMF’s economic research director, echoing concerns voiced by many experts around the world. It would almost certainly derail the American recovery and spill over to the rest of the world, he said at a briefing Tuesday.”

We fought two wars and are still fighting one of them in Afghanistan over 9/11. A NY Times article from a few years ago stated that the economic loss of 9/11 to the US economy was 3.3 Trillion dollars and this does not include the 3 Trillion we have spent prosecuting the wars.

So, to put this all in perspective, Congress and the White House are threatening to bring on an event that will cost this economy 4 times the damage of 9/11. If we default, our self-inflicted wounds will be four times more costly than those from Al Qaeda. The so-called grand bargain would save 4 trillion dollars spread over ten years. The 13 trillion in damage from a default will wipe out 30 years of “Grand Bargains”. There is no exact figure for what Obamacare will cost the economy since we must pre-judge a program that has yet to be fully implemented. However, some of the speculative costs mentioned would make the cost of a potential meltdown due to default 20 times greater than the projected cost of Obamacare.

Bottom line – the feckless, warring parities on both sides are threatening to bring on a disaster that will cost our economy 4-20 times the issues they are arguing about, could more than double our borrowing costs and trigger a broader global downturn. This is insanity. What is more insane is to argue among ourselves in the face of the economic terrorism of our own government. We were united after 9/11 and we need to be united as a people now. We pay Washington to get positive things done. It’s up to all of us to unite and pressure our Congressman and the President to do their damned jobs and govern for the common good.




Fred Thimmel, is the President of Bryant Products, and  CEMA’s (Conveyor Equipment Manufacturers Association) Government Affair’s Committee Chair.


Disclaimer:  Comments found on this Blog represent my views and opinions only. All items found on this Blog are subjective, except where specifically stated and/or quoted otherwise. Quotes and statements are for clarification or further information only and do not imply or express any views other than my own.



  1. K.MacLaren says:

    Great blog! This is what all need to remember about being an American and living in America, we get to decide who we like or who we don’t like in running our country. We get to do this without being treated as if we are an enemy by our people because that’s what America is all about. Kimberly

  2. Fred Thimmel says:

    I will be a happier American if we raise the bar on the tone of our national debate. We give our grand children time-outs for the types of behavior voters and politicians practice.

    1. Kimberly MacLaren says:

      I couldn’t agree more, perhaps our politicians need to have their mothers standing over them to ensure they’re behavior is acceptable, if not time-out!

      1. K.MacLaren says:

        I believe that some of our politicians lose their focus as to why they are there in Washington and perhaps a time-out is something they should all be forced to take to get refocused on what is important.

  3. Fred Thimmel says:

    And no ice cream after dinner.

  4. K.MacLaren says:

    No ice cream? That’ll shake them up!

  5. Terrie says:

    Right on, Fred!!!

  6. Tom Hartmann says:

    Hi. I saw a job posting so I wanted to see what CEMA is about. I share similar values to the author: be informed, don’t believe the lies and noise — seek the truth, and then vote. The unfortunate item is that the lobbyist (SuperPAC) money is now the prominent voice in the election campaigns. That is creating much of the spin. CEMA has a down-to-earth, champion-of-industry persona from this website. Small lobby perhaps, but authentic voice. Cheers

    1. Fred Thimmel says:


      Thanks – great points and I agree. People need to take the time to find the truth and both parties count on the fact that voters are too lazy to fact check and will fall for their propaganda. Sadly, many, many of them do.