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View Poll Results: Will the debt cieling be raised on or before Aug 2?
Yes, cieling will be raised by some dubious last minute agreement and the government's spending recklessness will continue as usual... 58 77.33%
No agreement will be reached and the US will default 17 22.67%
Voters: 75. You may not vote on this poll

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Old 07-10-2011, 03:58 PM
 
Location: Sputnik Planitia
6,898 posts, read 9,676,167 times
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What do you think is going to happen come August 2nd?
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Old 07-10-2011, 04:12 PM
 
14,256 posts, read 16,203,958 times
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Quote:
Originally Posted by k374 View Post
What do you think is going to happen come August 2nd?
What always happens. A political compromise and loads of politicians telling us all how great they are.
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Old 07-10-2011, 07:55 PM
 
Location: Business ethics is an oxymoron.
2,166 posts, read 2,601,631 times
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+1 on what Jag said. Absolutely a deal will be made at the last minute "just in time". As much as I and many others want to see it held where it is (after all-what's the point of having a so-called ceiling in place if it just keeps getting raised indefinitely?) and let the chips fall where they may, I don't see that happening. The political stakes are just too high. That, and "kick the can" till the next cycle (and then kick it again) is about the only thing we are good at any more.
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Old 07-10-2011, 08:56 PM
 
Location: Central FL
1,382 posts, read 3,461,146 times
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Everyone needs to understand that the US will NOT be forced to "default" if we don't raise the debt ceiling. We still have enough tax revenues to pay the interest on the debt that is owed, thus no default. However, we have nowhere near the tax revenues needed to pay for both the interest payments on the debt, as well as "business as usual" spending on defense, medicare, and social security, et al.

If the debt ceiling were to be breeched, we could direct the tax revenues first and foremost to the interest payments and then pay the rest as we could afford. YEP, that means a big haircut and an immediate forced balanced budget. (think 42% cut to everything across the board, because that's how much we are deficit spending right now)

It looks like we are in for the grandest political theater show ever, resulting in a piddly "compromise" that barely staves off the next debt ceiling event, sometime soon after the next Presidential election.

We're on fumes now and just kicking the can. Honestly, I can think of NO reason that anyone would want to be President in 2012.
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Old 07-10-2011, 09:21 PM
 
28,665 posts, read 31,269,692 times
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Quote:
Originally Posted by k374 View Post
What do you think is going to happen come August 2nd?
I don't know what will happen, but no matter what happens, August 2 will not be the end of it.

Even the best case scenario is going to involve a lot of pain for everyone...and I don't think most people really want to see that.
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Old 07-10-2011, 10:46 PM
 
5,409 posts, read 10,330,114 times
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Quote:
Originally Posted by MovedfromFL View Post
Honestly, I can think of NO reason that anyone would want to be President in 2012.
Right person with the right plan could do a lot of good.

Just have to:

1. Cut the Empire/Military and stop the Endless Wars.
2. Re-instate the tariff and head US towards balanced trade.
3. Take US off Oil.
4. Criminalize all payments/bribes or "contributions" by Corporations, Lobbies, etc. to any Polytick.

Probably have a JFK moment in the first week, but if not, that would have US i good shape in 4 years.
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Old 07-11-2011, 08:57 AM
 
Location: Ohio
22,798 posts, read 15,930,808 times
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Quote:
Originally Posted by MovedfromFL View Post
Everyone needs to understand that the US will NOT be forced to "default" if we don't raise the debt ceiling. We still have enough tax revenues to pay the interest on the debt that is owed, thus no default. However, we have nowhere near the tax revenues needed to pay for both the interest payments on the debt, as well as "business as usual" spending on defense, medicare, and social security, et al.
No, but State, county and city governments would be forced to cough up money to cover the short-falls from the lack of funds from the federal government, and federal government would also be forced to cancel thousands of contracts which will result in many lay-offs.

Quote:
Originally Posted by MovedfromFL View Post
If the debt ceiling were to be breeched, we could direct the tax revenues first and foremost to the interest payments and then pay the rest as we could afford.
It doesn't actually work that way. There's no payout on interest or principal until the bills, notes or bonds are redeemed. Those who redeem their bills, bonds and notes early forfeit interest, and there may be other penalties as well depending on the type of security.
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Old 07-11-2011, 01:52 PM
 
5,409 posts, read 10,330,114 times
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Quote:
Originally Posted by MovedfromFL View Post

If the debt ceiling were to be breeched, we could direct the tax revenues first and foremost to the interest payments . . . .
Real question on that part, btw.

Why?

Why select THAT priority of any?
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Old 07-11-2011, 01:59 PM
 
Location: NJ
29,481 posts, read 33,999,943 times
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its funny this morning how obama insisted on tax raises or no deal. shouldnt the republican position be thrilled with that? i dont want a deal. if republicans want cuts, no deal means about $1.5 trillion in cuts right off the bat. it also doesnt mean default so i dont appreciate the suggestion that no increase automatically means default.
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Old 07-11-2011, 02:11 PM
 
Location: NC
4,110 posts, read 4,037,051 times
Reputation: 1352
The ceiling will be raised. Nothing's gonna happen.

The exact same outcome as the "government shutdown"...
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