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Debt ceiling brawl threatens economy, consumers

The Giant Noodle

The Giant Noodle

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This is something that is VERY serious!! :( :doh

Washington is gearing up for a battle over how many trillions the federal government can borrow to pay its bills, and it's shaping up to be an even bigger brawl than the one just resolved over funding the government for the next six months.
While investors viewed last week's budget brinksmanship as a minor event, they are beginning to grow concerned that many lawmakers and ordinary Americans, fail to grasp the implications of even suggesting the United States would default on its debt obligations.
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CONTINUED: Debt ceiling brawl threatens economy, consumers - Business - Eye on the Economy - msnbc.com
 
Hasnt the debt ceiling been raised every time since we had one? If we don't doesnt the government stop functioning? Is there anything more to this than ideological protest to pander to the heated base?
 
SE102 said:
Hasnt the debt ceiling been raised every time since we had one? If we don't doesnt the government stop functioning? Is there anything more to this than ideological protest to pander to the heated base?
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Please change your avatar man. Anyways yes we did raise it. We need to STOP it!
 
SE102 said:
Hasnt the debt ceiling been raised every time since we had one? If we don't doesnt the government stop functioning? Is there anything more to this than ideological protest to pander to the heated base?
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It's a process of spending to much before the economy tanked + trying to keep the economy afloat, it's way more than what we should be doing.
The government won't stop functioning but if no agreement is reached some people won't get their money, whether it be furloughs again or other programs.

Neither party is gonna budge and the Republicans are gonna worry about worthless crap like abortion and avoid further tangoing with the big ones, like Medicare.
 
The Giant Noodle said:
This is something that is VERY serious!! :( :doh



CONTINUED: Debt ceiling brawl threatens economy, consumers - Business - Eye on the Economy - msnbc.com
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Refusing to raise the debt limit would definitely harm the economy, but not because the US would default on it debt obligations. That will only happen if the executive branch puts other spending above paying off the debt. If instead the executive branch puts paying debt obligations as it's first priority then spending on programs would have to be curtailed (quite extensively since approximately 60% of our spending is performed via borrowing.)

What this means is that all of the entitlement programs would have to stop making payments, as well as a substantial portion of discretionary spending. Coming all at once, this would have a major negative impact on the economy.

All that being said, to simply raise the debt ceiling without any hard agreements to reduce Federal spending in the future will also have negative consequences for the economy. The fact that the Democrats fought so hard against the minor spending cuts in the last appropriations battle shows that they have no desire or intention to enact the level of spending cuts that are needed in order to get our fiscal house in order.

Blunt and many other Republicans in Congress say they want to tie any debt-limit raise to enforceable limits on spending. One option, Blunt says, would be "statutory ceilings on how much of the GDP [gross domestic product] that the federal government could spend in a given year." Another option could be two-year appropriating, instead of the current annual system. Yet another option might be the equivalent of a balanced-budget amendment, a measure that Blunt is co-sponsoring.
St. Louis Beacon Story
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While the MSN writer decided to to claim
Republicans are threatening to attach policy measures on issues such as abortion funding and environmental regulation
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I have found nothing else to support that statement, the talk about riders that I have read from actual representatives have been about hard limits on future spending.
 
SE102 said:
Hasnt the debt ceiling been raised every time since we had one? If we don't doesnt the government stop functioning? Is there anything more to this than ideological protest to pander to the heated base?
Click to expand...

If you don't care about this that's fine, you're going to have to live with it a lot long than me.
 
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