reply to post by eLPresidente
If congress is divided and a timely decision is needed, the buck stops with Obama.
If the ceiling is raised then the debt and repayments continue to grow, reducing more tax revenue to the public sector and requiring more government
bonds to cover the costs. Eventually the compounding effects of the interest and flood of bonds in the market will lead to a default on it's
repayments. As for when this position will be reached I am not sure, but a lot of concern is growing around with this fiscal cliff. The effect this
will have on the markets is a loss of confidence and devaluation of the USD with possible US economic collapse.
If the ceiling is not raised then government services will grind to a halt as there is no money to pay its employees and other services. The USD will
continue to operate but many people will be out of a job or not get paid with those down the pecking order first to be let go. This will result in an
economic depression, as for if it will help avoid or further compound an economic collapse is uncertain.