Debt Ceiling: Question for Financial Wizards

[lawgator1]

Some GOP Senators on tv this weekend noting that not raising the debt ceiling might not be "catastrophic." Seemed to be floating a trial balloon that they might take us to the brink or even a little past it.

This is the first time I have heard this. Always seemed to be a concensus out there that failure to raise it would be a disaster. Financial gurus, putting aside the politics of it, what say ye? Is the damage that would be done overblown, as these folks suggest? Or are they whistling past the graveyard?

 

[golfballs]

It's catastophic that this is really an issue.

 

[DefenseisDesire]

It's catastophic that this is really an issue.

+1 Essentially they have already spent the money on paper. When they say the "cut" spending what they really mean is not increase it as much as they would have. If the debt ceiling is not raised, then essentially the U.S. defaults on its obligations and that is as simple as I can put it.

 

[droski]

i very much doubt we'd start defaulting on our treasuries or even considering it for that matter.

 

[IPorange]

It seems like it is a tactic to force Obama into more cuts. JMO IMHO.

I mean, that would be the obvious solution to avoid risking "catastrophic" events.

 

[droski]

exactly. he'd be forced to make more cuts.

 

[BigPapaVol]

It seems like it is a tactic to force Obama into more cuts. JMO IMHO.

I mean, that would be the obvious solution to avoid risking "catastrophic" events.

increased debt ceiling is tacit approval. Obama's response should be to ask them where to cut and give them painful options.

 

[gsvol]

 

[IPorange]

Could gsvol be a bot?

 

[gsvol]

 

[IPorange]

I think I'm on to something, here...

 

[DefenseisDesire]

i very much doubt we'd start defaulting on our treasuries or even considering it for that matter.

Taxes would have to be doubled and cuts would be in the area of 70% if we weren't going to default.

 

[droski]

Taxes would have to be doubled and cuts would be in the area of 70% if we weren't going to default.

:unsure:

 

[BigPapaVol]

Discussing debt ceiling is racist IMO.
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[golfballs]

Discussing debt ceiling is racist IMO.
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most ceilings are white

 

[gsvol]

President Obama called for more shared
sacrifice at a town hall Tuesday. Ever
since he visited that volcano in Central
America last month all he's talked about
is the need for sacrifices. Republicans
are starting to doubt that he is a Muslim
and think he's an Aztec.

 

[golfballs]

i've got a ceiling that's black

 

[BigPapaVol]

i've got a ceiling that's black

I have friends with black ceilings.
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[tigervol9802]

I have friends with black ceilings.
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I know a guy that has a friend with a black ceiling.

 

[BigPapaVol]

I know a guy that has a friend with a black ceiling.

You will have the decency not to tell anyone I spoke to you?
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[gsvol]

I think I'm on to something, here...

You always do. (erroneously)

 

[gsvol]

Are those ceilings (no matter the color) paid for??

 

[bam15]

Unless you want to default on treasury bonds, then yes.

 

[bam15]

A statutory cap on non-interest spending should be thrown in.

 

[droski]

Unless you want to default on treasury bonds, then yes.

interest on treasuries is a fairly small part of the budget.