The Debt Ceiling Deadline

[Mr. Rainman]

As most of you probably know, the United States government is in danger of defaulting on its national debt of $14.3 trillion dollars and climbing. The Treasury Secretary has stated that he can keep paying the bills that we owe up to August 2nd (that's Tuesday, or 3 days away) before we are in danger of defaulting.

No one really knows what's gonna happen if we DO default, but there is a consensus that our sterling credit rating of AAA will be cut down to AA...something we have never seen happen to us before. This would make us look like a more risky investment to other countries...and they would likely make necessary adjustments, harming our economy. Did I mention that this could send shockwaves throughout our markets and affect other markets? Stocks gave us a preview this week: they made their worst 5-day finish in over a year.

All eyes are on Congress now as they try to raise the debt ceilings, but unfortunately Washington is going nowhere fast. The House - run by Republicans - has passed two resolutions and bills that could address the debt ceiling - but Democrats in the Senate have slammed both down.

What are your thoughts on this? For me, Jon Stewart put it best, regarding this squabble between parties:

"My question to Congress, and a question from many Americans as of tonight is this: do you want out of this relationship so bad, but don't have the balls to leave, so you all decided to act like such giant ***holes that you force us...to break up with you? Because if so, just get the **** out."



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[Eric]

Is this really the best place to start discussing national politics, especially when the issue is so charged?  I can see a war starting here pretty easily... 

[Mike M]

Is this really the best place to start discussing national politics, especially when the issue is so charged?  I can see a war starting here pretty easily... 

Yeah, I'm not for political discussions in this forum.

[Mr. Rainman]

Okay, fine. If this isn't the place, then someone take this down. Keep in mind this isn't entirely a political issue, unless someone chooses to make it so. The only political statements I made was a fact regarding bills in Congress - and why they weren't getting past, and the quote. I wasn't planning on taking it any farther.

[toxictwister00]

Pretty sad and pathetic of both parties to drag this on for as long as they have. You would think for once in their lives they could put the political egotistical pride of theirs aside to get something as serious and possibly crippling as this resolved through a compromise. It's like having 5 year olds running and controlling the country or better yet, cats and dogs.

[phw115wvwx]

It's just a really big mess that we never should have in the first place, and I really don't want to say anything more about it.  I don't even know what will happen with my job and pay if we default, so I'm hoping something will be done at the very last minute just like in April.

If there is even the slightest hint of a war here, I will lock this topic permanently.  I don't want to see a political fight on a forum where we're all friends.

[Localonthe8s]

I'm quite confused about this default stuff, does it mean our unemployment rate will go up even more? A scary fact is Apple has more cash than the US govt now..perhaps the govt should start selling ipads now But in all seriousness, something has to be done. I'm concerned this default may cause further cuts in education such as Federal student aid and pell grants. These are the lifelines in affording a college education, IMO, as I am dependent on federal financial aid for college

[Eric]

I'm quite confused about this default stuff, does it mean our unemployment rate will go up even more? A scary fact is Apple has more cash than the US govt now..perhaps the govt should start selling ipads now But in all seriousness, something has to be done. I'm concerned this default may cause further cuts in education such as Federal student aid and pell grants. These are the lifelines in affording a college education, IMO, as I am dependent on federal financial aid for college

It could most certainly send the unemployment rate up, and that's the last thing the country needs right now.  As for Pell grants and federal financial aid, it's a very strong likelihood that they would be suspended until the government is able to pay its bills again.

[Localonthe8s]

I'm on a $5000 Pell Grant, I can't afford my college tuition without that. I'm concerned if they do indeed suspend the Pell grants, then students will start dropping out of college

[twcclassics]

Hmm...how to respond this without making it political. Let's see...

First of all, we are not going to default. We can't. Despite the fear mongering that the president and Timmy are doing, social security checks will go out and our military will be paid. They have to.

This problem could have been avoided if a certain group would have passed a budget last year. At the time, I couldn't understand why they'd do something so stupid. Now I do. To put us in this position and make another certain group as the enemy of progress. They're doing it by saying things like "hey, we'd love to fix this problem, but they're not willing to 'compromise'." Of course, when group A says compromise, they mean they want group B to do what THEY want. In particuar, to allow them to continue spending money on things we don't need, and pay for it with higher taxes. Which, of course, is exactly what you need to do when the economy is in the crapper.

To group A (and the few left in group B that are like them), this is just a game. It's all about power. Although I expect this childish behavior from them (they've been doing it for decades...it's what they do best), I'm mighty pissed.

[Mr. Rainman]

The sad thing is that we are in the dark for the most part. No one has come out and said, "If we default, this is what is going to get suspended/cut/have a spending cap." Which explains why everyone is worried at the moment.

I think they're going to try and cut the unnecessary stuff first - at least, that's what I hope - and hold on to the stuff we really need. This includes spending with defense, and systems used to keep the public safe - this includes the National Weather Service and the Food and Drug Administration.

[Eric]

I'm on a $5000 Pell Grant, I can't afford my college tuition without that. I'm concerned if they do indeed suspend the Pell grants, then students will start dropping out of college

Unfortunately, that's a very realistic possibility.  With the country in default, paying for students to go to college will be the least of the government's worries.  Sadly, that will mean that some students simply won't be able to continue with their studies until this is over.

[Eric]

I think they're going to try and cut the unnecessary stuff first - at least, that's what I hope - and hold on to the stuff we really need. This includes spending with defense, and systems used to keep the public safe - this includes the National Weather Service and the Food and Drug Administration.

Unfortunately, I don't think, in today's political climate, the government considers NOAA to be of prime importance.  In fact, it wouldn't surprise me if they put the FDA on the back burner, too.  Just look at how long the FAA has been partially shutdown!

[Mr. Rainman]

Regarding the FAA, it has been partially shutdown for 8 days. Yet air traffic still continues, for the most part, without a hitch. Out of the 4000 workers suspended, none were air traffic controllers, and very few were federal engineers. Most were at the agency headquarters.

The point I'm making is that this partial shutdown of the FAA is NOT affecting public safety. And even if the government DOES decide to cut some of the funding of the National Weather Service and FDA, I think seeing this action with the FAA tells me they won't do anything that would jeopardize public safety. Also, seeing how a large number of those workers suspended were from headquarters, and not workers at individual airports, I don't think smaller departments of the FDA and NWS will see worker cuts.

[Mike M]

I honestly have no idea what defaulting is, nor can I ever understand any of the science behind that... yeah, you can tell how little I pay attention to politics