Congress could in theory refuse to raise debt ceiling

[PSCGuy]

But they won't. I predict with almost 100% chance they will raise the debt ceiling.

Article on this:

http://www.kgw.com/news/business/120000049.html


(Yes I'm in PDX)

Beyond "in theory", they could refuse to raise the debt ceiling. However, I do have a serious question for you. What do you think will happen if Congress *doesn't* raise the debt ceiling?

 

[maxpowr9]

Beyond "in theory", they could refuse to raise the debt ceiling. However, I do have a serious question for you. What do you think will happen if Congress *doesn't* raise the debt ceiling?

If we don't raise our debt ceiling by July 1st, the US Government defaults on their loans and we enter a global depression. I'm not trying to be Chicken Little here but it is very grim but quite possible reality.

No doubt the Republicans would get the blame for it.

 

[bobo425]

Beyond "in theory", they could refuse to raise the debt ceiling. However, I do have a serious question for you. What do you think will happen if Congress *doesn't* raise the debt ceiling?

it will make the financial crisis that GW left us look like a cake walk.

 

[Kulindahr]

If we don't raise our debt ceiling by July 1st, the US Government defaults on their loans and we enter a global depression. I'm not trying to be Chicken Little here but it is very grim but quite possible reality.

No doubt the Republicans would get the blame for it.

Which is why they don't really dare let it happen.

 

[PSCGuy]

I do know what would happen, or inasmuch as economists predict. I want to know what Tea Partiers think would actually happen if we refused to raise the debt ceiling. It's not like spending just stops and that's it.

 

[Críostóir]

Yes, they could refuse. And technically Obama could appoint 5 more justices to the Supreme Court.

He won't though. Neither will they. And if they do refuse to raise it...well, their political lives won't be the only ones they have to worry about after the inevitable crash.

 

[PSCGuy]

They could NOT raise the debt ceiling, and instead pass legislation to cancel all intragovernmental holdings (over $4 trillion out of the current $14 trillion taken care of with the stroke of 3 pens) and put forth any overage collected for Social Security, etc, toward paying off foreign debt. Since there is no "lock box", like Gore suggested in 2000, there's no reason in further pretending there is while adding on fake debt that future generations would be expected to repay.

So you want to make Social Security go insolvent like, tomorrow, instead of in 70 years?

 

[JayHawk]

They are using the issue just like the chickenfeed squabble over reducing the current budget. It is simply a news maker to get their obscene faces on TV and then feel out what the public resonates with so they can exploit it without ever actually choosing to do a damn thing.

it is incredibly sad really. The debt ceiling will be raised and NEITHER side will actually look at cutting what needs cut and saving those programs that need support.

How long did it take to recover from the great depression? Yet our gottta have it now attitude is going to stall this recovery. What did we get outta of depression recovery spending? Oh yeah the greatest infrastructure in the world upon which 70 years of prosperity was founded. Now what will we get? Soundbites.