Debt ceiling and inflation - what happens when it is raised ?

I listened to Obama today and the man can certainly speak. They are touting apocalyptic consequences again if the debt ceiling is not raised and spoke right to the folks who get handouts from the govt. But what happens when the debt ceiling is raised in terms of inflation? Supposedly this money goes to pay for commitments and contracts already made and that money will get spent. Then what? Is there more money going into circulation or is it just to keep the ponzi going awhile longer with no discernible effect of inflation?

Listen to Mr. O, I couldn't help think that we should default. Who are we really helping by going into more debt? If I was in my 20's I'd be promoting default to wipe out all the crap built up that I didn't have a say in. Any more debt put on now goes to future generations - so maybe there should be a movement started to promote default. Wonder if you can force govt. to default by vote?

If I was someone loaning to the US, I'd probably be more interested in it if it could actually pay it's bills with money that's not going to lose value. Default on current creditors, citizens and banksters and then start over.

Right, I cant listen to the fearmonger in chief anymore. Everything is always in perpetual crisis for which only he has the answer and the GOP is holding him back. Thus, the blame is always shifted away from his policies, it's a joke, the man cant take any responsibility for any of it. As for inflation, they probably would print up the money and disperse it accordingly to control supply. Haven't they already done that? not sure?

If the US defaults, the value of the dollar could plunge which will make anything imported or made from imported materials more expensive.

The President can't do anything about it personally. Congress has to authorize raising the limit and Congress has to write any bills which include spending and revenues so they determine the deficit and debt.

The US DOES NOT have to default.

A default means to fail to pay not only the principal but the INTEREST.

There is NO reason for a default. The US could simply cut it's spending to ensure it spends WHAT IT TAKES IN and honouring it's current debt obligations.

It's the free fucking candy that needs to stop.

The value of the currency will go down.

http://photos.imageevent.com/stokeyb...rencyvalue.jpg


Making the stock market appear to go up.

http://photos.imageevent.com/stokeyb...ney/30DJIA.jpg

Makes it look like a pretty good hedge on inflation until you figure in how your stiffed with capital gains taxes on an illusion of a gain.

They've already counterfeited so much our occupations can't keep up with it. I'm not sure if that really worries them much. After all their economy is doing better than ever. The higher the ceiling the more interest they are bringing in. AND all of the manipulation conjured up by their think tanks is getting shoved a little more towards their goals, despite our efforts to rein them in.

Quote:

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Originally Posted by Seraphim

The US DOES NOT have to default.

A default means to fail to pay not only the principal but the INTEREST.

There is NO reason for a default. The US could simply cut it's spending to ensure it spends WHAT IT TAKES IN and honouring it's current debt obligations.

It's the free fucking candy that needs to stop.

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Easier said than done. If you want to balance your budget by cutting spending and didn't reduce anybody's Social Security or Medicare (like Ron Paul said he would not do) and interest owed on what we have already borrowed, you would have to cut 100% from the remaining budget including Defense Department to not increase the debt (have zero deficit for this year). Or you could double income taxes. That would get you there as well. Otherwise the debt is going to continue to rise. I agree that is a desirable target- but hitting it is very difficult and will only get harder to do in the future.