Volunteer_Kirby
Its not what you think...
- Joined
- Oct 10, 2006
- Messages
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Current U.S. Debt:$14.231 trillion
Current Debt Ceiling:$14.294 trillion
Expected to hit the cap by the middle of the month. If you've been following this then you know the the deadline was originally July 8th, but now a 3 week extension has been added to that, making the new deadline Aug 2nd.
So, the story goes that when we reach the cap we raise the ceiling. We've done it dozens of times in the past and have never been denied a debt cap raise before. My concern lies with the reliance on this trend as it seems rather risky, especially considering that the situation does not seem to be getting any better. Bear with me now, but say, theoretically, we reach the cap and are unable to raise the debt cap. Does this mean a default on the debt is the likely result?
Pondering the debt issue further now, if they don't act on a practical plan which promotes some hope of sustainability in the restructuring of the federal budgeting system then what repercussions might we realistically be looking at? Huge cuts in federal spending and or significantly higher taxes? Or as Bernanke put it: "real chaos" (if a default were in effect)? Really, how many more times can we raise the debt ceiling? Call me crazy but I have a difficult time believing that unless a greatly superior structure is put in then the financial system may be headed for disaster.
Ah, perhaps I reach too far with this post. Someone help me "rationalize" all this. It all seems backwards to me. :loco:
Current Debt Ceiling:$14.294 trillion
Expected to hit the cap by the middle of the month. If you've been following this then you know the the deadline was originally July 8th, but now a 3 week extension has been added to that, making the new deadline Aug 2nd.
So, the story goes that when we reach the cap we raise the ceiling. We've done it dozens of times in the past and have never been denied a debt cap raise before. My concern lies with the reliance on this trend as it seems rather risky, especially considering that the situation does not seem to be getting any better. Bear with me now, but say, theoretically, we reach the cap and are unable to raise the debt cap. Does this mean a default on the debt is the likely result?
Pondering the debt issue further now, if they don't act on a practical plan which promotes some hope of sustainability in the restructuring of the federal budgeting system then what repercussions might we realistically be looking at? Huge cuts in federal spending and or significantly higher taxes? Or as Bernanke put it: "real chaos" (if a default were in effect)? Really, how many more times can we raise the debt ceiling? Call me crazy but I have a difficult time believing that unless a greatly superior structure is put in then the financial system may be headed for disaster.
Ah, perhaps I reach too far with this post. Someone help me "rationalize" all this. It all seems backwards to me. :loco:
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