Debt ceiling issues with USD and hotel bookings

I hear about this debt ceiling problem seems like every year. Life goes on and nobody mentions it again for another year.

I'm not a politician and I don't play one on TV but I bet you'll be ok

Nigel is probably right but if you are certain that you are going (it's only a week and a half away) there is probably no harm in paying early.

https://www.reuters.com/markets/currencies/dollar-firms-optimism-over-us-debt-ceiling-talks-aussie-down-after-jobs-data-2023-05-18/
The dollar index was up .7% simply because of the expectation last week that the U.S. would not default. I concur with your concern.

If you reserved at a set price pay the hotel if and when you get there as scheduled. You never know if your flight will be delayed unrelated to a debt ceiling.

I am a senior who is thoroughly dependent on social security. There is no other income. I am very stressed about this Debit Ceiling Issue. It is said that we seniors will not be getting our social security if the U S defaults.Some might have to cancel their travel plans.

Also consider for those waiting on passports, they might be further delayed. And there might not be any Homeland Security in the airports. What about air traffic control? Aren't they federal employees?

If the US defaults there won't be anyway for you to get to Europe as the airports will be closed on account of air traffic control and security not being paid. I definitely would not pay in advance as that situation won't be covered by insurance either . I also wouldn't pay because the exchange markets have already priced in what they think will happen

Lissie

When we had some major budget crises a few years back, the airports remained open but no one got paid until the problems were resolved. Then staff did get back pay. The public wanted to raise. money for airport staff who were not getting paid but we were not allowed to.

All of us were very grateful to Homeland Security who did a great job while not getting paid.

Social Security and Medicare were not touched last time but now they are going to be the first to go.

Social Security and Medicare were not touched last time but now they are going to be the first to go.

What is the source of this info?

As for how the USD exchange rate might change because of a default, the only indicator from the past that I can think of is to research what happened just before/after Aug 5 2011, when the debt was downgraded from 'AAA" to "AA+ "

It's not that the govt. will have no money, just not enough for everything. Like having a $1000 in bills due and having only $900 in the bank. If the worst happens, 'someone' has to decide how to spread around the available cash. Cash will be coming, as there is withholding that comes out of everyone's paycheck.

Hi, this is Molly, and I'd like to clarify my situation. By June 1st, we will already have arrived in Ireland, staying about two weeks in Ireland and then N. Ireland, and into Scotland and finishing up five weeks of vacation in London. So, we won't encounter any problems getting out of the country, but I guess, maybe, getting back home. But I will deal with that when it happens.
I am also part of Social Security, and Medicare, and a teacher's retirement fund, but those are also problems I will figure out when something actually changes.
The only question I am asking is whether I should try to pay the hotel bills now, with a known current exchange rate, or if someone has read a reliable resource on the effects of a possible default on the exchange rate for USD to British Pounds? I know lots of people are nervous about this issue, but I am looking for advice based on information that is not just "this hasn't happened before, so likely it will not happen now." A lot of stuff has been happening lately that I never dreamed would happen in the United States. Reasonable behavior seems to have vanished. If you have read an article or have financial advice for me, please let me know what you think about paying ahead vs paying as planned, when we arrive.
Thanks!

There is no reliable publication when it comes to money and certainly not this issue. Money is emotional: anxiety, satisfaction, distress, comfort, all depending on how much or how little one has. It's a crap shoot. No matter what you do, you can't look back and say "if only I had...."

Two years ago the US dollar was 1.20 to the euro (when I made a very big purchase in Europe). Last year it dipped to 1.00 and 1.02 for almost a month. Now at 1.08, it looks good to me...still...but that's the perspective of someone living in Europe using US money.

So, it's a question of how it looks to you and how you will feel. If you pay now and it goes down to 1.05 next week, will you kick yourself for paying 3-cents more this week? And if it goes to 1.20, but you didn't pay in advance, will you kick yourself for the 8-cent difference? If you do feel you have "lost," then you can make it up with pub meals instead of white tablecloth restaurants. Just so you feel that you have evened it out.

You can calculate the difference in price for your hotels and make your decision. I'm really sorry that I can't give you economic advice. My crystal ball broke during my last move-LOL. No matter, we're all in this together.

joe32F

I am basing my information on news and talk shows. I watch a lot of news on many channels. And what is being reported is that social security checks will be paused immediately. That is reported first before anything else is reported.

When we had a major budget problem some years back, it was reported that Social Security and Medicare would not be affected. And that is what happened even though other federal programs were.

Molly

No one seems to be able to predict what the future might be when it comes to currency exchange. No one knows what is going to happen if the U S defaults, period.

I watch a lot of news on different channels. I watch a lot of different perspectives. Everyone agrees that no one knows what is going to happen if the U S defaults but that it is going to be catastrophic. (at least people can agree on something)

Do you have a banker, broker, financial adviser, etc? If so, that is probably the best persons you need to turn to for your question. How about calling the Teacher Retirement Fund?

Myself, I always wait until I get to the hotel to pay because who knows what delays might happen in the real world, yet alone unreal world.

It sounds like you have a fantastic trip planned for the next five weeks.