Wed, May 23, 2012, 1:55 AM EDT - U.S. Markets open in 7 hrs 35 mins

Not Again! Debt Ceiling Debate Set to Make a Monstrous Return

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You can pick almost any horror film and chances are, somewhere in it a character that was presumed dead makes a dramatic, surprise return looking to hurt anyone in its path. Even though being scared is exactly what we paid for, we still scream and squirm in our seats. Fun stuff if you're into that sort of thing.

Well guess what, movie fans? The sequel to last summer's debt ceiling showdown in Congress is coming to theaters everywhere this fall, and the early reviews say it will be even bloodier than the first.

"If there is another big debt ceiling showdown before the election it is going to have a big impact," says David Chalian, Washington Bureau Chief at Yahoo! News in the attached clip.

While it is still too early to pinpoint the precise day that the Treasury's checking account runs dry, everyone in Washington knows the monster is lurking and is likely to show itself in November. Even President Obama eluded to the need to avoid putting the nation through the same ordeal that ultimately cost us our AAA-rating.

Chalian points out a few issues that make the exact timing of our money drought hard to predict.

First, the pace of federal spending and tax receipts can be jiggered a bit, but to put off until at least November could be tough. And as much as he notes that the whole culture of last year's singular focus on debt and deficits has changed, he says there is now complete recognition from everyone that they don't want to have another showdown debate.

"I will predict that a lot of people on both sides of the aisle are trying to figure out the accounting in such a way that perhaps that discussion and vote doesn't take place til after the election," says Chalian.

But if they're wrong or can't agree, then Nightmare on Capitol Hill Part 2 will be surely be a box office smash again.

Would another debt ceiling showdown impact your vote? Let us know in the comments section below.

For more on the election check out Yahoo!'s Destination 2012!

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  • Dominator  •  2 months ago
    It is your money yourChildrens money and your grand childrens money and i want it now!
    Barak H Obama comander in thief.
  • Toadaly  •  Richardson, Texas  •  2 months ago
    At the current *planned* rate of deficit spending, the US will hit 120% federal debt/gdp by Jan 2014. Many economists consider this the point of no return. But worse than that, the US has an unusual state/federal political system, and everyone ignores state debts. If you include those, the total national debt/GDP is within spitting distance of 150% - the same as Greece. The reason it's important to include states, is because taxpayers are burdened by both.
    • Dominator 2 months ago
      dont forget municipal and county debt as well. we are screwed and di not even get a kiss.
  • aberdeem  •  Jackson, Tennessee  •  2 months ago
    Why doesn't someone look to tax foreign companies products take $ out of the U.S. to pay tax in Japan, Korea, etc.! Why do American consumers continue to buy 10 to 12 Million foreign autos each year? These companies pay little to no tax here! Wake up America!
    • John M 2 months ago
      Cuz US cars are #$%$
  • Adrian  •  Charlotte, North Carolina  •  3 months ago
    Well if you have any investments, start rolling those into bonds and money market accounts in September. Let them spew their political crap from both sides, let the markets plummet and send everyone into a panic about another recession. Once the smoke clears and a deal is struck, put that money back into stocks and Voila, nice returns on your money.

    It worked for me last year. Hope Wall street doesn't see this.
  • johnny44  •  Seattle, Washington  •  2 months ago
    Dump Bush's tax cuts and tell Congress to rewrite the tax code. We will all pay higher taxes until they sit down and WORK it out. Borrow currently cheap money to repair infrastructure, which will prevent catastrophic failures of the system which would could be deadly and will certainly be more expensive to repair after the fact. The people hired to do the work at good wages will pay taxes and spend money, creating more revenue and jobs.
  • BRUCE  •  Los Angeles, California  •  3 months ago
    Some where there must be someone who has the guts to stop this madness. This is not a party thing because it is on both sides of the isle. As simple as I can make it. If you run out of money you don't just print more. You cut back on your spending !!! You don't raise the debt ceiling.
  • Caer Cariad  •  New Orleans, Louisiana  •  3 months ago
    "Even President Obama eluded to the need to avoid putting the nation through the same ordeal that ultimately cost us our AAA-rating."

    To the author: I think you meant "alluded to" instead of "eluded to" -- elude means to escape notice, which might be what the politicians hope happens to the debt ceiling.
  • mustangmach  •  Providence, Rhode Island  •  3 months ago
    Good. Bring It On. I am NOT a Paul supporter, but as long as FAT GOVERNMENT keeps spending more than it steals from us, this nonsense will continue.

    Fire Obama, Fire the Fed, and demand that we RETIRE the debt.

    Krugmann is an IDIOT.
  • Stan  •  Huntsville, Alabama  •  2 months ago
    Cut all spending, everything (military, education, law, etc) but keep all of the social welfare programs and the US must still borrow or print money to pay its bills...
    • Dominator 2 months ago
      social programs need to be history, Period. either work or you do not eat, sounds fair to me.
  • Dude_2011  •  Santa Clara, California  •  3 months ago
    The final stage of addiction is here. Country now needs a Trillion Dollar fix every year!
    • michaelc 3 months ago
      Addictions can cause death. In this case, the country's addiction to debt can cause our collapse.
  • gary  •  Fremont, California  •  3 months ago
    Im in California. Brown says our revenues are 2.6 billion less than we estimated. Our spending is 2.6 billion more than our estimates. Amazing how they are both wrong in the opposite direction. This is how it always is. You can laugh. Youre not here.
    • DGH 3 months ago
      You folks in Cally are financially being misled. If our government is big enough to do everything for you it is big enough to take everything from you welcome to USSR Cally and USA. I visit CA because I have family there, but CA is really not reality land. CA Folks paying for homes they can't afford with home loans from Fannie Mae and Freddie Mac that will be gone in a minute once America wakes up and shut offs this subsidy for these broken national banks for home loan model. The Californians could afford much more housing if Freddie Mac and Fannie Mae lost these billions in funds from tax payers to support their broken home loan business model. What will happen is the over priced home loans will stop flowing to none market determined home loan pries. The CA housing market will collapse another fifty percent approximately on housing prices. Then those smart enough to have waited to buy a home in CA will put the base to the correct market based price through local banks making the new home loans. The real estate sales people that are saying more money should flow to Fannie Mae and Freddie Mac are not your friends folks. They and Fannie Mae are the problem of getting back to affordable housing.
    • gary 3 months ago
      DGH---- Your reply was too long. I read it anyway. Ohio you say.
  • AJ  •  New York, New York  •  3 months ago
    This will become a yearly event if Obama is re-elected as he has told OMB he seeks to spend more than $1 trillion above revenues each year of his 2nd term. Now I don't know that republicans will spend any less if they win big in November, but Obama has already announced his intention to spend more borrowed money. He will have added $11 trillion to the US Debt after 8 years compared to Bush's $5 trillion over 8 years and the rest of the presidents' $4 trillion. What does it mean? A loaf of bread will cost $100 because the dollar will be worth-less. Tell Obama and the democrats to CUT SPENDING.
  • Big Knucklehead  •  Nashville, Tennessee  •  3 months ago
    WHY??? BECAUSE CONGRESS IS NOT DOING ITS' JOB!!! INCUMBENTS OUT!!!
  • johnplinney  •  3 months ago
    Republicans won't be happy until they have destroyed this country.
  • Average Joe  •  3 months ago
    No matter how far you kick the can down the road, you eventually walk up to it again.
  • hen  •  Cleveland, Georgia  •  3 months ago
    WHY IS THIS COUNTRY SO STUPED
  • Mike  •  3 months ago
    The Fed is the reason for this huge debt. When Americans finally realize this is the MAIN problem of our country maybe then we can be unified in fixing the real problem. Over half of our debt is owed to the Fed, a privately owned banking system that literally invents money out of nothing and charges our government interest on it which we the citizen pays in taxes. WAKE UP AMERICA..
  • Thurston  •  Everett, Washington  •  3 months ago
    America is suffering from years of poor leadership. We need new cadidates to emerge that are willing/able to govern with integrity (gee, what a concept).
  • morejobs  •  Mt Dora, Florida  •  3 months ago
    Anyone in the government that votes to incease spending without a budget should be voted out in the next election ----- Democrat or Republican
  • no, your friends cant wat ...  •  Westford, Massachusetts  •  3 months ago
    an easy fix to the debt ceiling issue is...

    VOTE THE BUMS OUT!!!

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