Originally Posted by BamaGrits84
I'll just be honest - I don't fully understand the deal with the debt ceiling so I need help. I keep hearing that the US will default on loans if we don't raise the debt ceiling. Since my debt is limited to a credit card and mortgage default to me just means failing to follow payment terms. So how is we raise out debt ceiling does that stop default? We won't be able to borrow from one lender to pay another? I guess I don't understand why after 3 weeks of talks on raising the debt ceiling they haven't found ways to cut enough fat from spending to come up with the money to pay whatever is at risk of default.
put it this way. IF the US defaults on its Debts...Barack Obama can kiss goodbye to a second term in office
The Democrats and The Republicans need to have a deal on the financial state before the first week in August...if they cant aggree on how, to come up with the extra money...they wont HAVE the money to repay debts...THAT will be bad.
In Short...the Democrats want to raise taxes, and spend the extra income on Debt repayment. The Republicans think that the US simply needs to cut back on all the shyte it spends and give what they have left to national debt.
What the Republicans are calling for is an Austerity budgit for the United States...and frankly...thats what all the European Nations are trying to do...massive spending cuts, the closure of non essential services from the Government, cuts for Defence budgit, Cuts for health services, cuts for EVERYTHING...and give the spare money to plug the debt
The Democrats think that they can simply raise taxes...but noone likes paying taxes for a debt that THEY as individuals did not incure.
Barack Obama got REALLY heated within a debate yesterday...where he litterally got up and stormed out, claiming that if the US defaults on the debt because the Republicans wont aggree with him, it will bring down his presidency.
...I think the Republican response was
"so what if it does"