The national debt is the largest national security threat!

[mookiemookie]

Originally Posted by TorpX

Unfortunately, I think the debt ceiling will be raised again. Very few in Congress seem to have the psychological toughness to do otherwise.

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.