Debt Ceiling Deadline Pushed Back: Will the GOP Budge?

These are givens, and they are the reasons for public outrage. However, it doesn't mean the government shouldn't raise the debt ceiling. Standard & Poor's warns there is a 50% chance it will lower the U.S. government's AAA credit rating by one or more levels within three months. S&P said yesterday that even if Congress raises the debt limit in time to avert a default, it might lower the U.S. sovereign rating. Meanwhile, only 55% of respondents in the latest Wall Street Journal poll "say that failing to raise the debt ceiling would be a real and serious problem."

Today's Daily Ticker guest David Walker -- the former Comptroller General of the United States and head of the Government Accountability Office -- says it's imperative both sides of the aisle find a compromise that also sets conditions to lower our long-term debt and get us back on track. If they don't, the rest of us will pay.

Here's what he says will happen if the federal government can't reach a deal:

1. $4 billion-plus a day will come out of the economy.

2. Government and civilian military workers will be laid off temporarily. That will result in penalties for late payment, to be paid by taxpayers.

3. Social security payments will be delayed.

4. No one knows how bad the reaction will be, but Walker is confident it will be negative for the stock and bond markets and the economy.

5. Interest rates will rise. For every 1% rise in interest rates, taxpayers will be on the hook for an additional $150 billion in debt payments.

Here is THE answer to all our troubles.
2 Chronicles 7:14
"if my people, who are called by my name, will humble themselves and pray and seek my face and turn from their wicked ways, then I will hear from heaven, and I will forgive their sin(s) and will heal their land." Any questions????
We kill about 4000 babies every day in our abortion clinics (MURDER), we accept SODOMY (Gay Rights -"Weddings" - etc.) which caused the destruction of Sodom & Gomorrah, we EXPLOIT THE POOR and CHEAT THEM OUT OF A JUST WAGE at our border with Mexico by threatening them to be turned over to Immigration if they don't allow us to use them.
GOD BLESS AMERICA??? WHY SHOULD HE, WHEN OUR SINS RISE TO HEAVEN AS A STENCH IN HIS NOSTRILS.

Doomsday at 4pm Monday is the Asian markets if debt isn't increased.....DIDN'T HAPPEN..... CUT 4 TRILLION NOW.....NO TAX INCREASE.

Thomas Jefferson, after Shay's Rebellion, wrote that a little rebellion now and then is a good thing for a democracy stating, "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is its natural manure." Gather your group with your ideas and express them as you elected officials are being irresponsible with your dollars and are arguing like children about a coming event that can significantly change the American standard of living and way of life!

eleminate wars of choice

Local Goverment, deminished federal goverment used for national defence, reduce the salaries of federal officals to $7.00 an hour so they know how it is to be a working American. Confederation of States rather than Federalism. Federalism has brought us to empire and the debts of empire will destroy us. Democracy died in the 1860's, let us refresh liberty and reform our goverment. The option to seceed from the union was a garantee of libery, it was the consent to be governed made real. Where is our consent to be governed? By downsizing the Federal role in the life of the American people we can stop it's spending, eleminate the IRS, and increase the responsivness of of goverment. Local Goverment.

The truth to this matter is that most of us, including myself are clueless of what is at stake.
All we know is what we read from many sources that are paid to support one side or the other.
I have a business where I buy and sell products from mainly Europe and some small items from China.
There are a great deal of products that are imported from poor countries that are NOT taxed. No tarrifs or duty fees are collected because of special agreements between these countries and ours that enable those countries to grow while we my products from Europe are taxed to death.
If i want to export american goods, as I have tried many of times to do so, I simply can not find one item that can complete directly in prices or quality, and by the way, american goods are taxed on their way out.
How much money are we missing out on products that come in w/o taxation? Billions ? Trillions?
These politicians do what they want, not what we americans want them to do, that is the problem,,,

Henry and Aaron are debt junkies....it is irrresponsible to pile any further debt on our childern and our children's children!!!!

There isn't any issue here. All media spin. The Largest portion of Treasury debt is held by the Fed....there is no maturity date becuase it can be continually rolled over....the Creditor (Fed is never going to demand payment).
The only part of the debt which we could possibly default on is what private citizens of any country hold and what public foreign governments hold. There is no problem covering those maturities and interest rates.
Doesn't anyone understand what QE 1 and 2 are really accomplishing ????
They are taking privately owned debts and transfering them to the Fed.....where there is no chance of a default. The Fed can continuously hold as much debt as it wishes on it's books and can restructure, roll over, and even write off any amount it wishes.
QE 1 and 2 effectively take a debt that has to be paid.....off the market....and puts it on the books of the Fed where it can be paid.....when we feel like paying....maybe 2050. (This does not include MBS and other security issues purchased.....only US Debt)
The issue is that noone wants to reduce the money supply, velocity, and circulation through increased taxes or interest rate hikes....so the only alternative is to increase the deficit. Which is compounding the problem.
But the entire default thing is a hoax and a lie and will never happen anyway.
The real problem is that all of the liquidity injected into the system is not entering the purchasing power of the en masse population. That QE 1+2 cash is staying at the top floating around the higher income (wealth owners) who sold the treasuries and MBS to the Fed in the first place.
The only way American Joe and Jane are going to increase the consumer spending in this country is if Uncle Sam sends everyone a check....which is what the reduction in social security taxes was meant to do......and guess what......repeat of 2008.....gas and food prices (elevated and inflated by the QE 1+2 cash) just took all the gains away from American Joe and Jane. Even Steven. Plan failed.
Taxes have to go up, there is no other way out of this trap.
This talk of default is an absolute media spin created by both parties in Congress, who are taking advantage of the people's ignorance of the charter of the Federal Reserve Bank of the United States.

The ONLY thing YOUR vote decides is WHO implements the Bankers ( Rothchilds ) Policy.

That's it peasants, in a nutshell.

The rest is staged theater, organized chaos, games of distraction.

Most of Congress are simply paid actors for the Billionaire BOYS CLUB.

There is your model and they accomplish it all with Counterfeit paper. ( Dupe the Masses )

See how feeble it really is.

The Masses never learn and are always manipulated by the CULT.

The debt ceiling will certainly be raised, the only questions being how much of a show the Republicans will put on and how it will be received by the American people.

Sigh... Kicking the can down the road... ok, another month to hash out a deal. This deal better be good enough to placate bond traders (a planned reduction in debt in absolute terms with the intention of reaching zero debt in 20 years-- Hah! I'm dreaming!). A month to come up with a plan to last a century-- I don't see it happening. A reckoning in the bond market will happen first before tough budgeting decisions are made. I think the powers-that-be are happy to be second/third place in the global pecking order in another ten years-- which is why nothing is being haggled over in Congress. QE 3 will happen now, it's a sure thing when Congress fails to grow up.

The posters on Yahoo are the dumbest cretins and matoids on the planet ... I cannot believe the utter drivel on this blog. 'Rock Solid Truth' won't know the truth till his bank account is worth nothing. Those of you blaming republicans in the face of OUTRAGEOUS debt increases in a down economy for political payoffs and the purchase of union votes are so @#$%-cing stupid there are literally not the words. Clearly, economics and history are not taught anymore ... I won't even bother with the laundry list of past defaulted countries, present countries effectively defaulting, and countries doing well ... it won't mean anything to the dum-shiite class (x'ers and y'ers) who've got their heads so far up their @#$%, they won't see daylight for YEARS. Jesus. Good thing you dum-azzes have iPods & iPads & iPhones to distract and entertain your stupid azzes. What's REALLY funny, your posts make it CLEAR you NEVER go to an ACTUAL financial blog and LEARN something. You just spew non-sensical, sensational garbage you heard 'somewhere' ... DUM-FUCs! All of 'ya! Better stay home with mummy 'n daddy.

The only way to get out of this debt situation is to remove USD from the system. We can not get out by printing more money or even shutting down the Fed. Reduce our socialist programs, cut off the commercial banks from easy credit from the Fed, no more bailouts of any company or institution, and retire (reduce) money in the system. Then increase the retirement age for SS, get rid of the Obama Care, drill in Anwar, hop out of Afghanistan/Iraq/Libya, and so on...

Let's start from the top if we want to save money.. All US congressmen and senators, should pay for their own medical insurance and pension.... How much savings will that be? Stop all benefits for the illegal aliens. Where these illegal aliens came from, they don't even have the benefits they are enjoying here in the US. All government employees, from federal to the states, should contribute to their medical and pension benefits, just like ordinary US citizens. How much does all these adds up? Illegal aliens who commits crime should be send to hard labor and pay for their stay in prison.

They always raise the cap and will again, but not before the dog and pony show......

All the polititians are looking for answers to problems that will win them another term and to posture their party or frat house that keeps them in office to keep stealing as much money as they can get away with. The only answer is to hold them accountable and make them do their jobs all 4 years. If we can't hold them to some kind of standard, then we need to get rid of them and there is really only one way to do that and it ain't the vote. Personally I think everyone should not vote to 1: show our discust, 2: to get rid of this baloney voting system that is a nasty joke on the ignorant masses, and 3: to show that the present system don't work to the point that even dumb people can figure it out.
It will always amaze me how much abuse we will put up with as a people. The govt is broken and needs to be gutted and fixed like a pets cage needs to be cleaned out now and then before it stinks and goes further and spreads desease. It is time to change the newspaper at the bottom of the cage or get rid of our ineffective leaders. If only there was a way other than a revolution to get rid of these ineffective leaders, because your vote don't do anything. I mean nothing at all. If no one voted, would anything change? Nope.

There is a basic problem why we are in this situation and seem not to get out of it. during the past 50 years most of the developed countries turn to "welfare states". old people, sick people got paid or subsidized by the governments. Public and private employees (especially the CEOs and high executives) got fat paychecks and very nice retirement benefits. I am not saying they are not deserved, but you can't pay too much money which you don't have or you couldn't squeeze out from the tax payers to death. When it's time to tighten the belt, everybody protests and scream bloody murder so that Congress is painted to a corner and no meaningful deficit cut can be passed. Look at the recent protests in Greece (and in lesser chaos in France, etc.) attested to that. More precisely, it was easy to increase benefits to the masses, but unfortunately when comes to the belt-tightening time, it is EXTREMELY DIFFICULT to RETREAT to PREVIOUS CONDITIONS. On the other side of the coin, it is also difficult to reverse the lowering of the tax too. Everybody is happy when taxes are lowered for everyone, but you will meet stiff resistance when you like to jack up the tax rates for anyone.
The Federal Government should not only try to balance it's budget, they should also, like the State Government, to have a "slush fund" put aside in good economic times in order to supplement the shortfall in times of recession. In the time of enacting an entitlement program, the Congress should study how the additional revenue will be available to pay for them and also project the gradual increase of the expense of the entitlement with the revenue to pay for it as well.

its all political theatre. the crisis our govt has created, will be saved by the same. lets give them a round of applause and 4 more years. since thats what they are really after.

Bottom line Gov. going to do what ever is in the best interest of corporate america. America will not default, F888 em all. Let's continue to BAILOUT BANKS AND BIG CORPS AND OTHER COUNTRIES. WHO GIVES A HOOT. THEY ARE GOING TO DO WHAT'S BEST FOR THEM NOT US. WHAT PART DON'T YOU INTELLIGENT MUFFUGGERS UNDERSTAND! AMERICAN THE MODERN DAY @#$% OF BABYALON CONTINUES TO SUCK! SUCK WHAT? PECKERS,NIPPLES, AND COOCHIE.! THOUGHT YOU KNEW! IT'S THE AMERICAN WAY!!!!!!!!

The Fed is the giant computer grid we're all plugged into, 'cause we're all being used as batteries for the electrical charge we can produce with our bodies. Talk about a slave job, I mean, WHOA. Double whoa. This explains that strange feeling you get when you see those bunny commercials, that feeling that all is not what it seems...