What will happen if the debt ceiling isn't raised?

[IGotWorms 4,058]

So, apparently a large number of House Republicans are actually willing to play with fire when it comes to the debt ceiling. From my link:

 

In Fiscal Fight, G.O.P. Distrust of Obama Runs Deep By CARL HULSE

WASHINGTON — If President Obama thought he could rattle House Republicans with his warning on Tuesday that Social Security checks might get held up in the event the debt limit was not raised soon, he was mistaken.

 

“That’s not leadership; that is sad and pathetic,” said Representative Allen West, a freshman Republican representing thousands of Social Security recipients in South Florida. He said the president and the Treasury secretary could pay pressing federal obligations out of money still coming in, and if they say they cannot, “Then they are liars.”

 

Mr. West is no outlier in the House Republican majority, where distrust of the Obama administration runs deep and warnings of economic Armageddon do not seem to be moving lawmakers toward a compromise.

 

Instead, many Congressional Republicans seem to be spoiling for a fight, calculating that some level of turmoil caused by a federal default might be what it takes to give them the chance to right the nation’s fiscal ship.

 

“I certainly think you will see some short-term volatility,” said Representative Austin Scott of Georgia, the president of the freshman class. “In the end, the sun is going to come up tomorrow.”

 

 

Now my suspicion is that cooler heads will eventually prevail and a deal will be worked out, but at the same time it certainly doesn't sound to me like the House Republicans are bluffing. So the question is, what will happen if the debt ceiling is not raised by August 2nd?

 

I use August 2nd because that is the deadline the Administration has set, and presumably the markets will react to that deadline whether or not it is the exact point of no return.

[phillybear 366]

Well, if the debt ceiling IS raised, a fock load of Congressman and the president will be voted out of office.

 

Either way, I am hoping for the collapse of the government and the era of anarchy, zombies, and the return of the Wild Wild West. And I think Will Smith has had a movie about all three.

[IMMensaMind 462]

We have enough revenue to cover obligations which would otherwise damage our credit rating with the revenue we presently receive. Our contractual obligations would be fulfilled. The Republicans are doing the right thing here, and must remain stalwart.

 

Refusing to increase the debt ceiling will not result in damaged credit. In fact, allowing a ceiling increase would undermine confidence in our solvency more than holding firm.

 

We need to show responsibility, and this is a great way to do it, and expose those who really aren't serious about solving our spending addiction.

 

I voted Chicken Little, but the consequences would be more than 'no big deal': they would send shockwaves through all the right people in this country.

 

The ones which are the problem.

[Voltaire 5,317]

The economy seems to me to be weak already and patched together with scotch tape, staples, rubber bands, and glue. Given it's fragile state, I have no idea why the Republican Party has decided to see what happens when they deliberately push it over the cliff. Unfortunately, the shiite is going to have to hit the fan because I have no confidence in them getting anything done until things begin to fall apart.

 

I predict the markets go berserk before August 2nd and hopefully default doesn't happen. The price to be paid for taking us to the brink will be steep enough. Actually, in truth, I'm amazed that things haven't gone to sh*t already since we're well into July already with no hint this is going to end.

 

We're just waiting for the moment when Wile E. Coyote looks down.

[IMMensaMind 462]

The economy seems to me to be weak already and patched together with scotch tape, staples, rubber bands, and glue. Given it's fragile state, I have no idea why the Republican Party has decided to see what happens when they deliberately push it over the cliff. Unfortunately, the shiite is going to have to hit the fan because I have no confidence in them getting anything done until things begin to fall apart.

 

I predict the markets go berserk before August 2nd and hopefully default doesn't happen. The price to be paid for taking us to the brink will be steep enough. Actually, in truth, I'm amazed that things haven't gone to sh*t already since we're well into July already with no hint this is going to end.

 

You're amazed; I'm not. The markets understand that the default hyperbole is just that: hyperbole. We can avoid default through expedient use of existing revenues.

 

We're just waiting for the moment when Wile E. Coyote looks down.

 

Hyperbole.

[IGotWorms 4,058]

Refusing to increase the debt ceiling will not result in damaged credit. In fact, allowing a ceiling increase would undermine confidence in our solvency more than holding firm.

 

That's not what the credit rating people say:

 

http://latimesblogs.latimes.com/money_co/2011/06/moodys-warns-it-could-downgrade-us-credit-rating-if-no-deal-comes-soon-on-debt-ceiling.html

 

Moody's Investors Service warned Thursday that it could downgrade the U.S. government's AAA credit rating if there is no progress in the next six weeks on a deal to raise the nation's $14.29-trillion debt ceiling.

 

The credit rating agency said it saw a "very small but rising risk of a short-lived default" by the government on its obligations to holders of Treasury bonds and other debt.

 

The nation reached the debt ceiling May 16. But the Treasury Department has been juggling some finances to keep the government from default as President Obama negotiates over significant spending cuts that congressional Republicans have made a condition to any increase in the debt ceiling.

 

Those "extraordinary measures" will run out Aug. 2, the Treasury said.

 

Moody's said that although it "expected political wrangling" in Washington, "the degree of entrenchment into conflicting positions has exceeded expectations."

 

"The heightened polarization over the debt limit has increased the odds of a short-lived default," Moody's said. "If this situation remains unchanged in coming weeks, Moody's will place the rating under review."

[Frank M 181]

I gotta think that anyone not a libertarian or Tea Partier is going to hold the Republicans responsible for refusing to give in at all.

[Voice_Of_Reason 0]

I gotta think that anyone not a libertarian or Tea Partier is going to hold the Republicans responsible for refusing to give in at all.

So, just democrats?

[Frank M 181]

So, just democrats?

 

Independents. You know, the bulk of the voting public.

[Phurfur 70]

If it isn't raised we will have to run a balanced budget.

 

This is Obama's problem, he spend every dime of the last debt ceiling in 2 1/2 years. Next time he should think before he drives the country into ruin. Any moron that can’t figure that out deserves to go down with the ship. RIP USA

[Mungwater 597]

Independents. You know, the bulk of the voting public.

 

A bulk of independents are against raising it

[titans&bucs&bearsohmy! 2,745]

This whole thing is b.s. The Republicans are just making hay, making Obama look bad. They will raise it, just like they do every other time.

[Strike 5,570]

I gotta think that anyone not a libertarian or Tea Partier is going to hold the Republicans responsible for refusing to give in at all.

[Mungwater 597]

This whole thing is b.s. The Republicans are just making hay, making Obama look bad. They will raise it, just like they do every other time.

 

Thats what people I know on the hill are saying, but it just matters to what the repubs get in return.

 

They're all scum

[Phurfur 70]

Independents. You know, the bulk of the voting public.

 

I'm an Independent and I blame the Democats.

 

Dozens of Independents I know feel the same way.

[Phurfur 70]

This whole thing is b.s. The Republicans are just making hay, making Obama look bad. They will raise it, just like they do every other time.

 

Obama does not need help to look bad.

[titans&bucs&bearsohmy! 2,745]

Obama does not need help to look bad.

 

No, but it costs the Republicans nothing to string this out and make him squirm. That is what is going on here. On the plus side, maybe he caves like a poosay on something and they actually get a win.

[DAVID RUFFIN 2]

We have enough revenue to cover obligations which would otherwise damage our credit rating with the revenue we presently receive. Our contractual obligations would be fulfilled. The Republicans are doing the right thing here, and must remain stalwart.

 

Refusing to increase the debt ceiling will not result in damaged credit. In fact, allowing a ceiling increase would undermine confidence in our solvency more than holding firm.

 

We need to show responsibility, and this is a great way to do it, and expose those who really aren't serious about solving our spending addiction.

 

I voted Chicken Little, but the consequences would be more than 'no big deal': they would send shockwaves through all the right people in this country.

 

The ones which are the problem.

 

 

I rarely resort to name calling but I'm going to make an exception. YOU ARE AN IDIOT..That's all.

[Frank M 181]

I'm an Independent and I blame the Democats.

 

Dozens of Independents I know feel the same way.

 

You are not even close to an independent. Sorry to burst your bubble.

[Frank M 181]

 

Hey, if Obama is willing to discuss the Democratic Holy Grail of Social Security and Medicare and the Republicans are unwilling to discuss the Republican Holy Grail of Taxes, it's logical to think that if the debt ceiling isn't raised and bad things happen, the party that refused to do anything might get more of the blame.

[BLS 314]

I rarely resort to name calling but I'm going to make an exception. YOU ARE AN IDIOT..That's all.

 

 

And your basis for this is?

 

If you're gonna indicate you believe someone is less than intelligent, are you not going to make an argument for your assertion?

[titans&bucs&bearsohmy! 2,745]

And your basis for this is?

 

If you're gonna indicate you believe someone is less than intelligent, are you not going to make an argument for your assertion?

 

Since when is that required around here? Its not like "can size" or "link"...

[Strike 5,570]

Hey, if Obama is willing to discuss the Democratic Holy Grail of Social Security and Medicare and the Republicans are unwilling to discuss the Republican Holy Grail of Taxes, it's logical to think that if the debt ceiling isn't raised and bad things happen, the party that refused to do anything might get more of the blame.

 

Specifically, what has Obama offered re: SS and Medicare?

[Phurfur 70]

You are not even close to an independent. Sorry to burst your bubble.

 

Now that just shows how clueless you are when it comes to politics.

 

Please define an independent voter for me. If you registered to vote you should know.

[IGotWorms 4,058]

I'm an Independent

 

[Phurfur 70]

Hey, if Obama is willing to discuss the Democratic Holy Grail of Social Security and Medicare and the Republicans are unwilling to discuss the Republican Holy Grail of Taxes, it's logical to think that if the debt ceiling isn't raised and bad things happen, the party that refused to do anything might get more of the blame.

This is not about blame it is about doing what is best for the entire country. Please tell me how raising taxes in our current economy will spur job growth? Oh that's right Obama is blocking job growth. See Boeing and the oil industry.

[Recliner Pilot 61]

Libs are the only ones who can claim to be independent. And that's because they are ashamed of the term liberal.

[Phurfur 70]

And yet another poster who doesn't know what an Independent voter is.

[IGotWorms 4,058]

And yet another poster who doesn't know what an Independent voter is.

 

You're about as independent of the Republican Party as Hong Kong is from China.

[Phurfur 70]

You're about as independent of the Republican Party as Hong Kong is from China.

 

Please give me your definition of an Independent voter you poor clueless ******. It really shows how narrow minded you are.

[IGotWorms 4,058]

Please give me your definition of an Independent voter you poor clueless ******. It really shows how narrow minded you are.

 

Sure, here's my definition:

 

Independent (adj.): Not Phurfur.

[Phurfur 70]

Sure, here's my definition:

 

Independent (adj.): Not Phurfur.

 

OWNED

[IGotWorms 4,058]

OWNED

 

Really? You think so? I thought my retort was pretty funny but I wouldn't go so far as to call it "ownage". Well thanks anyway, I guess.

[Phurfur 70]

Really? You think so? I thought my retort was pretty funny but I wouldn't go so far as to call it "ownage". Well thanks anyway, I guess.

 

So you don't know what an independent voter is or you found out you were wrong. That is ownage.

 

BTW: Your retort was very juvenile, we used that logic in grade school.

[IGotWorms 4,058]

So you don't know what an independent voter is or you found out you were wrong. That is ownage.

 

BTW: Your retort was very juvenile, we used that logic in grade school.

 

I know exactly what an independent voter is. I also know the political opinions that you have generally expressed on this bored. Therefore, I know that you are not an independent voter. See the logic there?

[drobeski 3,061]

Libs are the only ones who can claim to be independent. And that's because they are ashamed of the term liberal.

Can't really blame them, it is a shameful mental disorder to admit to.

[Frank M 181]

Specifically, what has Obama offered re: SS and Medicare?

 

He's offered to put them on the table for discussion.

[Frank M 181]

Libs are the only ones who can claim to be independent. And that's because they are ashamed of the term liberal.

 

When did I ever say I was an independent? I've always said I was a center-leaning Democrat.

[Strike 5,570]

He's offered to put them on the table for discussion.

 

Wow, that's very specific.

 

[IGotWorms 4,058]

Interesting article detailing how the GOP's extremists are out of touch when it comes to this issue:

 

Few Americans, however, take the view that spending cuts alone should be made in a deal, with no tax increases at all. In fact, only 26 percent of the Republican voters surveyed in Gallup’s poll took that position, along with 20 percent of voters overall.

 

http://fivethirtyeight.blogs.nytimes.com/2011/07/13/house-republicans-no-tax-stance-far-outside-political-mainstream/?hp