If the US defaults (doesn't raise ceiling in time) who would get the fall out?

[sunzt]

If the US defaults (doesn't raise ceiling in time) who would get the fall out?

 

[sm625]

The US doesnt default by not raising the debt ceiling. The US defaults if and only if it fails to make interest payments on the treasury debt. That will never happen because the interest is paid first. So what will happen is what must happen... spending will be cut. Where it gets cut is up to congress to decide. My guess is they will strip away all inflation pegs so that the dollar can be free to be devalued. Then the working class can be officially left behind as this runaway criminal government attempts to inflate away all its debt. The democrats will take most of the fallout in the white house and senate. In the house the fallout will be even.

 

[VtPC83]

Unfortunately the only person who will be remembered if this happens is Obama. He will be blamed for causing the problem and be blamed for not fixing it. He's the president, he's the only name anyone will remember or care about. Even though he is only a small part of the problem (as well as everyone else involved) he will take the full weight. We all blame Bush for everything but I'm sure there were some instances of Dem's not helping.

The whole system is pretty much all about ME ME ME, and getting re-elected at the cost of all the voters.

 

[brencat]

No question. Everyone will get blame. We are way past 1995 where the Repubs will take the lion's share of blame. What's different today is that people are waaaaay more cynical about Washington, and the average guy is not seeing much difference in the two parties from a governing perspective vis a vi pissing away money once they get into office, despite the campaign rhetoric.

I HATE THEM ALL

 

[halik]

all of us

 

[a777pilot]

The US doesnt default by not raising the debt ceiling. The US defaults if and only if it fails to make interest payments on the treasury debt.

This.

Your definition of default is whacked.

 

[Munky]

The US will not default. But it will force an immediate balance of the budget, and cut in spending.

 

[Schadenfroh]

I think the "blame the GOP for not making the rich pay more" is going to be successful. In reality, for long term sustainability, it might be necessary to implement the GOP plans for spending cuts and expanding the taxation proposed by the Democrats (like ending all Bush tax cuts, not just the ones for the wealthiest Americans).

 

[Blackjack200]

I think the "blame the GOP for not making the rich pay more" is going to be successful. In reality, for long term sustainability, it might be necessary to implement the GOP plans for spending cuts and expanding the taxation proposed by the Democrats (like ending all Bush tax cuts, not just the ones for the wealthiest Americans).

I think you're right, polling seems to be showing about 2/3 of Americans favoring cuts + revenues approach of Obama.

 

[theeedude]

If we go into partial shutdown (default or not), GOP would get the blame. We should do just that.

 

[Turin39789]

If we go into partial shutdown (default or not), GOP would get the blame. We should do just that.

Should? No.

We should pass a plan with steep cuts and with revenue increases to work towards reducing the defecit, reforming tax loopholes, nixing the Bush tax cuts(I'm fine with loosing them for everyone), reforming SS/Medicare as well as defense spending and raising the debt ceiling.

Instead we're going to just try and score as many political points as possible, because any increase in tax revenue is anti-American and will make the defecit larger. Only when we get to a 2% taxation will we be able to pay off the trillions.

edit - and lets go ahead and fix the cap gains tax rate while we are at it.

 

[BlahBlahYouToo]

the public will remember obama for it, regardless of who the actual offender is.

 

[Moonbeam]

No one will be blamed. Everyone will see that what happened had to happen exactly as it did. Everything that has or ever will happen happens by the Will of God and God is Perfection so whatever happens will happen perfectly and nobody complains about that. Perfection is what we all desire and what we always have.

You forgot to add this only real option to your poll.

 

[Siddhartha]

The GOP will take the hit on this.
It looks like the GOP will do anything including crashing the US economy to stop Mr Obama from getting re-elected. Anyone here really thinks the US would be in the current situation if a Republican was in the White House? Or that the House Republicans would be pushing to cut SS or the Medicare?

 

[colonel]

The Repubs have done all they can to keep jobs and job creation off the front burner. They are trying to stretch out the absurd "debt ceiling" crisis unhtil the next election so that nothing else can be done. High unemployment numbers are bad for Obama's reelection chances. The GOP aims to keep unemployment high.

 

[theeedude]

Should? No.

We should pass a plan with steep cuts and with revenue increases to work towards reducing the defecit, reforming tax loopholes, nixing the Bush tax cuts(I'm fine with loosing them for everyone), reforming SS/Medicare as well as defense spending and raising the debt ceiling.

Instead we're going to just try and score as many political points as possible, because any increase in tax revenue is anti-American and will make the defecit larger. Only when we get to a 2% taxation will we be able to pay off the trillions.

edit - and lets go ahead and fix the cap gains tax rate while we are at it.

GOP is not going to agree to that. So we should go into default/shutdown rather than give into their economic terrorism, which would crash the economy anyways. Once we are in an actual shutdown, the tables turn. GOP will be sitting ducks.

 

[theeedude]

the public will remember obama for it, regardless of who the actual offender is.

Nope. Ask the public who caused the shutdown in the 90s.

 

[First]

Obama since ultimately he has to make the decision. We're not going to fail to raise the debt limit though so it's irrelevant. Whether we get new taxes and reduced spending is another matter entirely. It would behoove Republicans to accept the currently proposed multi-trillion dollar spending cut on the table from the Gang of Six because it may not be there again in the same magnitude later in the year/next year when the debt is less of an issue politically.

 

[Pens1566]

GOP (mostly the tea party portion) will. Boehner will take some heat for not being able to control the first-term reps as well. The public is overwhelmingly in favor of increased taxes like those favored by the democrats and the right refusing to budge an inch on taxes will be what makes them the likely scapegoat. Rightfully so. Compromise is what people want, and they're the ones not giving anything up.

 

[Munky]

The GOP will take the hit on this.
It looks like the GOP will do anything including crashing the US economy to stop Mr Obama from getting re-elected. Anyone here really thinks the US would be in the current situation if a Republican was in the White House? Or that the House Republicans would be pushing to cut SS or the Medicare?

Seeing how Obama flip-flopped on practically all his campaign promises, that shouldn't be too difficult.

The Repubs have done all they can to keep jobs and job creation off the front burner. They are trying to stretch out the absurd "debt ceiling" crisis unhtil the next election so that nothing else can be done. High unemployment numbers are bad for Obama's reelection chances. The GOP aims to keep unemployment high.

Yeah, because Obama has done such a splendid job with unemployment before the debt ceiling fiasco.

 

[ProfJohn]

I think you're right, polling seems to be showing about 2/3 of Americans favoring cuts + revenues approach of Obama.

They only favor his approach because they are being misled about the numbers.

Returning to Clinton tax rates on the 'rich' (those making over $250,000) would only bring an extra $70 billion a year.

Our current deficit is over $1,000 billion per year.

Do the math, the additional taxes don't even come close to solving our problem.

The reason Obama keeps going to back to the taxes is because it is easy to fool Americans into thinking that they are the solution. This is because Americans fall for the 'rich' don't pay their fair share BS. That is why he focuses on things like the private jet tax even though the amount of money involved in it is so tiny you wouldn't even notice if it was repealed.

 

[Lithium381]

The Senate and the WH will..... the House has been pushing and actually passed budget bills and such..... the Senate is just sitting there with their thumbs up their butts...

it has to happen.... it's a wake up call for everyone.... bad timing and a little over the top, but it's better to happen now than latter

 

[Schadenfroh]

Returning to Clinton tax rates on the 'rich' (those making over $250,000) would only bring an extra $70 billion a year.

Our current deficit is over $1,000 billion per year.

Do the math, the additional taxes don't even come close to solving our problem.

Yes, drop in the bucket, but it does help. Just like drilling in ANWR and offshore can help reduce oil imports and bring in tax revenue (even if it only supplies X amount of our energy demands per year). It makes sense to use the tools available, such as ending all of the Bush tax cuts.

 

[Ldir]

Yeah, because Obama has done such a splendid job with unemployment before the debt ceiling fiasco.

What have the Repugs done? They said employment was their top priority. It seems like they've submitted bills for every nutball cause they have but haven't submitted even one bill to help unemployment. They are liars and are trying to hurt the economy for their own political gain.

 

[IceBergSLiM]

I think all sides are fed up with how morally and fiscally bankrupt our govt. is.