America will default? Debt Ceiling?

America will not default, we still bring in money that is more than enough to service our Debt payments. It is simple scare tactics.

The Senate and President are being douches because they don't like the fact that the House controls the purse strings.

Yes, the USA will default if the debt ceiling is not raised. You know how businesses do not keep a lot of cash at hand but use running short term and long term loans to operate on while waiting for people to pay the bills and settle their accounts, well the US government does the same thing. Right now the accounts will only have about 1/2 of what the bills will be next month available and the taxes and fees that are due next month may or may not be enough to cover the bills. Usually, the government just does like a business and borrows the operating capital but when they run up against the artificially imposed "Debt Ceiling" they can not borrow any more. Thus checks and bills don't get paid until the money comes in. What happens if you don't pay your bills on time? That is what a default is called.

As to why congress can not get it figured out, they have but the Republicans WANT the Economy destroyed before next years elections. You can guess who they will blame even though the Republicans have never met a Debt Ceiling they did not want to raise until this year.

Our interest rates will increase, making borrowing much more costly, which will, in effect, force the U.S. government to greatly reduce spending or greatly increase taxes. Considering the nature of the "progressive" movement started by LBJ that is pushing us ever closer to the socialist governments that exist in Europe, the latter is much more likely to occur. That will result in the loss of jobs, as private companies will cut positions to maintain the same level of profit.

Our government has become a mafia and Wall Street is its godfather. It doesn't matter which political party is in office, they themselves do not hold the power. If they did, Moodys and S&P wouldn't be calling the shots.