[TorpX]

Originally Posted by mookiemookie

I'm not sure you fully understand what would happen economically if it were not raised. You would revive the credit crisis of 2008. And you'd make it seem mild in comparison. Treasury yields would skyrocket because of the flood of investors, foreign and domestic, dumping their holdings. In a misguided attempt at austerity, you'd end up bankrupting the country with sky high interest rates. Those higher rates would freeze all borrowing by not only the government, but by business and industry. You'd crash the economy.

Money market funds would break the buck - you'd destroy every pension fund, public fund, retirement fund and investor in the country. You think your city/state/municipality has trouble now? If their cash holdings were wiped out, you'd see trouble for real. Good luck keeping a police force or firefighters when you have no money to pay them.

God help us if the people in charge of things have the same lack of economic understanding as those opposed to raising the debt ceiling do.

I know that is the conventional wisdom. Maybe you are right, but I am not convinced. I accepted the doom and gloom scenarios at first; now I suspect they are mainly a tool to keep spending. That seems to be the plan, anyway. I said they should not raise the debt ceiling, I didn't say they should default. The Gov't would still have tax revenue. They could still spend money, they would just have to spend LESS.

Let's say you are right and higher debt is mandatory. What happens when the Gov't can't borrow enough? What happens when no one wants to lend? What do you consider a plausible way out of this mess?

Sorry but in my opinion you are little bit unfair to Mr. Obama. Most of the debt he is dealing with is not here because of his actions but inherited from his predecessors (no only Bush Jr.). I don't say Obama is any better but putting all blame to one man (as I undertand your text to mean, correct me as appropriate) is a bit unfair.

I am blaming Obama and he is destroying my country. I THINK OBAMA IS BEING UNFAIR TO ME.

Do you know anything about Obama? Do you know anything about the Federal budget or the U.S. Constitution? Bush was a mediocre leader, he allowed too much spending, without a doubt. Mostly he just kicked the can down the road and comprimised with the Dems.
Obama has spent much more than Bush. Under Bush, the bailouts were sold as an emergency one-shot infusion. Under Obama, we get a 2nd and a 3rd and ......(I've lost count now). All this "Stimulus" and the economy is worse now than before. He has also rammed through "Universal Health Care", which will cost over a trillion dollars and is in fact unconstitutional. The Fed is printing money, so prices are going up and everyone's savings are gradually becoming worthless. He is in short doing everything he can to make the Government larger and hamstring the private sector, when he should be doing the opposite. I could go on, but my fingers would be bleeding by the time I finish. He is, by far, the worst President we have ever had, and considering recent experience with Jimmy Carter and Bill Clinton, that's saying a lot.



P.S.:

In case you didn't pick up on it. I do resent people who live in foreign countries, having the attitude that I'm too stupid to know what's good for me and I should be grateful Obama is my leader.
IF YOU THINK HE IS SO GREAT - YOU TAKE HIM.