US default could be disastrous choice for economy

[bloomington-lib]

Source: Associated Press

WASHINGTON – The United States has never defaulted on its debt and Democrats and Republicans say they don't want it to happen now. But with partisan acrimony running at fever pitch, and Democrats and Republicans so far apart on how to tame the deficit, the unthinkable is suddenly being pondered.

The government now borrows about 42 cents of every dollar it spends. Imagine that one day soon, the borrowing slams up against the current debt limit ceiling of $14.3 trillion and Congress fails to raise it. The damage would ripple across the entire economy, eventually affecting nearly every American, and rocking global markets in the process.


In fact, the main reason is the deep recession, which slashed tax revenues and led to hundreds of billions of dollars in recession-fighting spending by both Bush and Obama. The debt was $9 trillion in late 2007 before the start of the Great Recession, and it's just a sliver under the $14.3 trillion limit today.

One reason the two parties can't find common ground: they can't even agree on what's causing high deficits. Democrats mostly blame it on policies of George W. Bush: two wars, tax cuts that continue to benefit the wealthy and an expensive prescription drug program. Republicans see government spending as the culprit, particularly on Obama's watch.

Read more: http://news.yahoo.com/s/ap/20110423/ap_on_bi_ge/us_government_default_what_if

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(1)"Democrats mostly blame it on policies of George W. Bush: two wars, tax cuts that continue to benefit the wealthy and an expensive prescription drug program." (2) Republicans see government spending as the culprit, particularly on Obama's watch. "

1 Democrats name a few reasons why the debt is so high and where the money's going.
2 Republicans blame government and Obama

Who sounds like they know what's going on and how to fix it?

[tularetom]

1. Typical "liberal media" bullshit

Both sides are to blame!!

(Except of course when Democrats are the ones who fuck up. Then it's all their fault).

Just another example of why I no longer watch TV news.

[HankyDubs]

2. you can see it coming

The republicans will try to make this about planned parenthood again. Might be NPR or funding for the EPA. They will make a vote on the ceiling contingent on one or all of those.

Then they will run out with their talking points..."are the D's really going to default on the debt just to protect aborshin?"

[plumbob]

3. Blah, blah, blah. One look at the current interest paid on Treasury

instruments - all at forever lows, shows that these are desirable and safe investments in an uncertain world.

Why don't they concentrate on what is really likely to happen - like the fucking insurance companies will be given the gift of privatized Medicare (which I think has the actual potential of riots in the streets) to handing over the social security surplus to Sachs and others to "handle" for a neat 6% commission on every transaction.

[Sirveri]

4. Screw it, crash the system and destroy the nation. Let the chips fall where they land.

The system is totally disfunctional, and I'm quickly reaching the point where I am almost convinced that the only way to wake up enough Americans to actually DO anything is to just totally knock them clean out of their comfort zone. The Great Depression gave us Social Security and the greatest period of progressive political strength the country has ever seen. We'll either do it again or we will deserve whatever happens next (fascism uber alles).

[BobbyBoring]

5. I'm wit you!

[thelordofhell]

6. Have a nice time dying

What the hell makes you think that you would survive another Great Depression? Remember the stories that your grandparents told you? Well guess what, those were the LUCKY ones. Yeah, let the whole USA go into abject third world poverty......good call.

:eyes:

[indypaul]

7. The President was incorrect when he described

the Republican tactics as playing "chicken." Their
attitude and actions concerning the debt ceiling would
be more properly described as playing "Russian Roulette"
with our economy.