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US Debt Limit impact on June European trip

This is not about the politics of the debate. We are going to be in Europe most of June. If the US defaults on its debt obligations that month I have read there could be dire implications for our financial system. (Again, I don’t want to debate the whys of it or hear empty assurances that it’ll be fine.). Are there concrete steps before departure that we can take so that we can get home? Or is this a “nobody knows” situation? TIA for polite responses and is anyone else concerned about this?

Posted by
2261 posts

If your money is in FDIC accounts and within the limits of that insurance, you shouldn’t be concerned. There are waaaayyyyy more things to be worried about.

Posted by
10846 posts

On the list of things to worry about, it may be one ahead of a meteor strike.

If the financial system gets to the point airlines cease flying, I see no "concrete steps before departure that we can take so that we can get home".

Posted by
8147 posts

Recent financial turmoil can be distressing and worrisome. I understand. However, I don’t think there is even a remote possibility of the US defaulting. If you have a round trip ticket you can get home.

Posted by
4656 posts

I assume you will have a valid return plane ticket? Is there some reason you think that all the airlines would immediately cease operations? I doubt it.

Posted by
195 posts

Turn off your television before going to Europe. Once you get to Europe, sit at an outdoor restaurant, drink some wine and enjoy the ambiance. Any problems in the US will still be there when you get back. You have nothing to worry about.

Now if Putin drops an atomic bomb then I'd worry.

Posted by
2851 posts

When airlines are unable to transport passengers, you reach your destination on a different carrier. Don’t worry, you will get home at no extra cost.

Posted by
564 posts

Trip insurance, airline ticket insurance, anything to provide assurance you will be able to come home.

Posted by
4928 posts

I notice that this is the first post from this individual.

If they are that concerned, then withdraw all their money from their bank accounts before whatever this deadline is, and put it under the bed at home.
That is a concrete step.
Then wait for their house to be burgled or burnt down while they are away.

The other concrete step to be taken is to use some of that money to book sea passage back on the QM2, willing to lose that money when nothing happens.
That is another concrete step.

For them to say they don't want to hear empty assurances could be read as being about politics, irrespective of the opening sentence.

Posted by
7289 posts

If anything, activity will be related to delays and debates, like much debt, the holders of the debt know that the fundamentals are good, and assets exist to cover the obligation.

Now impact on the financial markets? Maybe, meaning possibly you might see the Dollar slip in value, nothing severe, and not enough that I would take action to buy euros now at a premium. Basically, that hotel room might in the end cost you a few Dollars more (unless you prepaid) and a meal might run a Dollar or two more.

Airlines service, your banking services, and other things related to your trip I can't imagine being affected. I suppose it it went on for a time, yeah, your Social Security check may not be deposited on time, so make sure you have some liquid cash in your accounts or available to move in.

Posted by
23105 posts

....or hear empty assurances that it’ll be fine....... That sure puts the straight jacket on responses. IF the default continued for several weeks, couple of months, then problems could develop with the function of government services -- customs, immigration, etc. But no impact on private banking, credit card networks. My assurances are empty but the default concern would be very low on my priority list. And -- besides -- you cannot control it.

Probably should spend a little more time understanding this site. You posted your question in the Trip Report section where trips are discussed after they have been completed.

Posted by
483 posts

Okay, I'm a federal employee, so I wouldn't want to be traveling around that time. But that has more to do with my paycheck, and I did travel during the 2013 shutdown, which was REALLY stressful.

But that's me and my paycheck.

If you are in the private sector, retired, not dependent on SSI or other government money, and bank at banks that have greater than $100B (or maybe $250B, you should have no problem completing your travels or accessing your money. Your return flight should be prebooked, so not an issue. The folks at TSA and CBP are "exempted" employees, so they have to work (for the promise of pay at some point in the future), regardless of the status of the government.

The US government has never defaulted on its debt. It's an unprecedented situation and it's difficult, even for the experts to agree on the effects. The threat of it happening has disrupted credit markets, but not for consumers, as such.

If you're still concerned, I might see about paying hotels in advance, and insuring the whole trip.