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How many of these people understand the economic consequences that not raising the debt ceiling could have?
Structural Adjustment Policies are economic policies which countries must follow in order to qualify for new World Bank and International Monetary Fund (IMF) loans and help them make debt repayments on the older debts owed to commercial banks, governments and the World Bank. Although SAPs are designed for individual countries but have common guiding principles
SAPs generally require countries to devalue their currencies... lift import and export restrictions; balance their budgets and not overspend; and remove price controls and state subsidies.
Devaluation makes their goods cheaper for foreigners to buy and theoretically makes foreign imports more expensive....
Balancing national budgets can be done by raising taxes, which the IMF frowns upon, or by cutting government spending, which it definitely recommends. As a result, SAPs often result in deep cuts in programmes like education, health and social care, and the removal of subsidies designed to control the price of basics such as food and milk. So SAPs hurt the poor most, because they depend heavily on these services and subsidies....
The reality is that, so far, we have largely failed to articulate a clear and compelling vision of why a new global order matters — and where the world should be headed....
All had lived through the chaos of the 1930s — when turning inwards led to economic depression, nationalism and war. All, including the defeated powers, agreed that the road to peace lay with building a new international order — and an approach to international relations that questioned the Westphalian, sacrosanct principle of sovereignty..
The simple mathematical fact is that the debt ceiling must be raised to support the debt based system they have created. It's a debt based system for a reason, it needs a continuous flow of debt to maintain liquidity and if they stop injecting more debt into the system it will collapse and thus the petrodollar and world reserve currency will collapse with it.
reply to post by Indigo5
Painting a rosy picture of high unemployment, record high food stamp usage, record high welfare enrollment, aren't you.
Some of us just don't see the world through Obama-style glasses.