Real "Showdown" Coming Over U.S. Debt Ceiling ... or Just More Political Theater?

My understanding is we need to issue debt to continue to pay on what we owe. If we dont raise the debt ceiling, ie issue new securities to fund out exisiting debt, how are we going to pay our existing debt then? If any investor gets any sort hint that we cant pay our debt the US goverment debt will no longer be risk free, therefore investors will require a hugh premium in order for us to borrow from them. I am all for walking away, but I still dont understand how we are going to pay the exisisting debt we owe do you follow. Are federal workers and the army suppose to show up for free or does that come out of another pool?

People that say that not raising the debt ceiling will result in default are either confused or trying to scare you.

Even if the debt ceiling is not raised, the U.S. will continue to pay its debt.

The media is eager for Republicans to be good little politicians and vote up the debt ceiling. At what point do we say ENOUGH? If not now, when? What is our exit strategy for 14 trillion in debt?

"If we hit the debt ceiling, that's ... essentially defaulting on our obligations..." Essential default is not actual default. It only becomes default if the liabilities are not paid when due. As long as the debt ceiling is not reduced, all that will be required is that cash outflows (including paying the interest on maturing liabilities) match cash inflows. The total amount of liabilities on the balance sheet can be maintained but not increased.

does anyone seriously believe that we AREN'T going to default at some point?

if you don't; if you believe 14 trillion is just big and not already too big, i am very interested in opinions of the trillion dollars debt level we have to achieve before EVEN THEY agree it ain't gonna happen.

do they think we would repay a debt of 50 trillion?? 100 trillion??

i think alot more people already believe it has gone beyond reach but won't voice the words (because they understand the implications)

why dont we each get fiscally responsible with our own houses instead of pointing fingers at the congress and senate.the congress and senate should then follow suit by not extending any debt ceiling ever again.we should cut back equally in all areas to make sure the checks dont bounce.i would start with the new congress and senates pay and benefits.

The latter. Expect the debt cieling to be raised, but also expect some high profile, (and meaningless) political concessions to be made.

This is a complicated issue and both sides have been complacent in their approach to it. How about retarding the advance of debt and raising the debt ceiling just enough to squeak by. If there is little 'wiggle' room for special projects and earmarks then both sides will have to sweat it out over the year.

It looks like another raise in the debt ceiling and no way Washington can start fixing the problems now or in the future. I guess it is up to all of us out here in the heather land to finally come up with a solution and buy a few more years of time. Here is my proposal: Each head of household needs to give Washington a blank IOU. check to pay off immediately, one half of the national debt, or a total of 7.5 Trillion dollars. Let's see to cover my three children and 5 grand children, my wife and I, will make my share about 225,000 thousand. This will cover one half of my 45,000 per person obligation. Being retired on fixed income, to come up with this much cash, I will need a little help. The Fed will need to give me a decent window of repayment at about what my present savings gives me or a 2% per year interest rate. Come on you suiters in Washington, join in and help us save the countries economy!

CurtisH ... HOW did Bush tank the economy? I see a lot of people posting that phrase, but never see the HOW behind it. Bush was President when Congress PASSED the TARP. I also seem to recall that Obama stopped campaigning long enough to come back and vote on the TARP legislation that Congress passed and Bush signed. You should understand how the American Republic works prior to voting. Once you grasp the knowledge, you then become an informed voter as opposed to a blind follower of an ideologue.