I've read basically everything that's been written about this debt ceiling crisis. For those not familiar with the history of this issue it's been raised 78 times since 1960. There has been one other "incident" where things got this close to not happening. In 2011 the Republican led Senate tried using the debt ceiling to force the Obama administration into reducing planned spending. It got down to the last possible moment and a deal was reached. That didn't mean no harm was done. 2011 was the first time ever the credit rating of the United States had been lowered. Due to what the rating agency (S&P Global ratings) referred to as "dangerous political brinkmanship" the rating was lowered from AAA to AA+ in spite of the last second deal. It hasn't been raised back since. The same credit rating agency along with a second agency (Finch) is again talking about lowering the credit rating of the country due to this brinkmanship. "It would be unprecedented in modern times for an advanced G-7 country, like the U.S., to default on its sovereign debt," S&P said in a bulletin. Finch released a similar warning saying, “Fitch believes that the debt limit will be raised or suspended in time to avert a default event, but if this were not done in a timely manner, political brinkmanship and reduced financing flexibility could increase the risk of a U.S. sovereign default,” In an interview last Monday Senate Minority Leader Mitch McConnell, who has voted nearly three dozen times to previously raise or suspend the debt limit said, "There is no chance, no chance the Republican conference will go out of our way to help Democrats conserve their time and energy, so they can resume ramming through partisan socialism’s as fast as possible,” Without any Republicans supporting the bill to raise the ceiling, which McConnell has promised to block again today as he has 3 previous times in the last 2 weeks the only remaining shot is for Democrats to use a Senate rule known as budget reconciliation. This is a lengthy process and today Bloomberg is reporting that in order for this process to be completed in time it would have to begin TODAY. This is THE ONLY other possible route to pass this in time. I expect that if this timeline gains traction and we don't see the process started today that the market will start to panic. On August 8 2011, when a similar standoff over the debt ceiling drug right up to the deadline resulting in the credit downgrade, the S&P 500 lost 79.92 points (6.7%) to 1,119.46 points with all 500 stocks and ten industry groups falling, with the Dow Jones Industrial Average dropping 634.76 points (5.6%) to 10,809.56 points and the NASDAQ Composite falling 174.72 points (6.9%) to 2,357.69 points, contributing to approximately $2.5 trillion erased from global equity value. I've been sounding the alarm on this one for quite awhile. If you've been hitting snooze on this it's time to wake up. My question is simple. Do you believe that, once again, Congress will pull through with a last second debt ceiling bill in time to stave off disaster? #tcardizzle #debtceiling #congress ///// For instant updates on this and many other issues join us on Discord @ https://discord.gg/emntYaQkDu ///// Sources https://fortune.com/2021/10/01/credit-rating-agencies-warn-of-fallout-should-debt-ceiling-talks-lead-to-u-s-default/ ////// https://www.reuters.com/business/finance/sp-says-it-expects-us-congress-address-debt-ceiling-time-2021-09-30/ ////// Doomsday Clock for U.S. Debt Ticks, With No Congressional Plan https://www.bloomberg.com/news/articles/2021-10-04/doomsday-clock-for-u-s-debt-ticks-with-no-congressional-plan
Yes67.92%
No32.08%
53 votes • Ended 10/05/21
42
5
Mitch McConnell is quite possibly the worst politician in modern American history.
He's going to be responsible for 2 credit downgrades when this is all over. The worst part? He'll get none of the blame.
SB
The GQP works hard to destroy America.
It is unfortunate that we continue to go more deeply into debt as a country that we cannot become more fiscally responsible but that is what we do😑😑😑
Since the odds are 80% to 20% and unless like you said @tcardizzle they begin this new bill today then it’s going to crash basically. So in that opinion as a new investor opinion only what would you do.? I know I read in earlier posts in the weeks that you pulled out all but 10% of your assets from the market. Do you believe they will pass this bill in time ??
Why don’t democrats amend there spending bill so they don’t have to raise the debt ceiling?
Since I’m neither “us” nor “them” I have no interest in the bickering over what rich blowhard is worse, only the results. I think they’ll get this done in time, as they’re very aware of the implications.
Having said that, So long as the two sides continue to tack on ridiculous demands to much more important bills, this will continue. Time for term limits & more than two parties.
Clinton days were rough too. We were military so it was horrible worrying if our measly paycheck was coming. Congress doesn’t have that stress. I called my son, in the Army , and warned him to be ready. I don’t care about parties but this only happens with democratic presidents. Not because they’re dems but because republicans use it as a place to pretend they care about spending. No one seems to…See more
Many GOP and Some Dems have become enthralled with these last minute power plays, coupled with Trump Era fault denial and truth suspension. We are essentially politically doomed.
WB
Manchin will vote for a carve-out, if necessary. Manchin is rational.
Sinema, on the other hand, seems to be on Putin’s Payroll, which translates to, whatever is bad for U.S., is what she will do.
Brent@Brent9
I think the ceiling will be raised again to avoid disaster. But people act like it's a "well duh" that it *should* be raised time after time after time. More noise should be made over the spending that gets us there. This is like taking out credit card after credit card. Is that responsible? Investopedia lists at least 5 ways the national debt affects us all in the long term
@Brent9 it doesn't matter at this point if they raise it. There's a vote today that McConnell says he'll block and that's going to set off a chain reaction. People can do what they want with their money but watch out. This isn't the first time this has happened
Buck@fothaluvofmuny
Dems could amend their spending bill. Reduce the foreign aide, reduce the fat raise they all have in there. A million here and a million there. It could definitely be amended and reduced. They are all dirty.. Both parties.. It's theatre and dramatic play so it looks one way to the American people and rest of the world. It's been this way since the 80s when they had real actor in the White House. T…See more
WB
Republicans increased the debt during the Trump Era. And then, voted out of office, (because Trump,) they stick the Democrats with the bill, brazenly complaining about “Democrats running up the debt,” when it was the Republicans who spent profligately without paying for their spending.
WB
Republicans think we’re stupid, or enough of us for them to win elections based on blatant lying.
WB
Trump sort of proved them right, or so they think.
WB
Not a “both sides” issue.
@JackWhiteMusicFan but.. aren't we? Democrats just barely won the House and needed a run off to win the Senate. That's AFTER 4 years of Trump. So your faith in the electorate isn't shared by me. They continue to do this stuff because it WORKS!! They'll blame the Democrats because it happened on their watch and they'll win both houses in 2022. I don't want it to happen. I'll spend all my available…See more
WB
Because of compromise with slave states, our system effectively gives a lot of power to land. Both the Senate and the Electoral College.
Look at Red/Blue maps. (Both by state and by county.)
Lots of sparsely populated land is in Red. Where a lot if people actually live, is usually Blue.
What does California have? 80 million people people? I didn’t look it up, but it’s a lot more than Wyo…See more
WB
So the system is stacked against us. Democrats represent people; Republicans represent land and money.
WB
But all is not lost. Difficult, yes, but that just means it is harder to do.
MLK said, “Organized people can defeat organized money.”
WB
(At least I think it was MLK.)
WB
Don’t forget, we won Georgia.
That wasn’t supposed to happen.
@fothaluvofmuny you just listed off 10 steps that the Democrats could do but the Republicans just have to do one thing they could end this today if they just decided to put the country first and vote for the debt ceiling. They contributed to that debt ceiling. So we can sit here all day and look like a hundred steps that could be taken but there's one very simple step that ends all of this today an…See more
And all that ignores the fact that there's not even a guarantee that the Democrats spending bill is even going to pass they only have 48 votes and they need 50. So the Republicans are holding the country hostage for something the Democrats can't even pass right now
WB
Because of the runoff situation, we could educate the voters to the facts, that if they elected both Democrats, the Democrats would have a majority, albeit razor thin. And the Democrats would pass economic relief package for the not-rich, 90% of us. And they did. And the Democrats did. And we got checks.
Buck@fothaluvofmuny
People should put 2 and 2 together. The only time it's ever happened before in U.S. history Biden was in the White House when it was down graded. Now it's happening again but oh no him or his party has nothing to do with it. Had a close call with Clinton as well. Hmmmm.. Seems to be a pattern. Dems always seem to be in the middle of our country in crisis. Promoting violence and vandalism causing r…See more
@fothaluvofmuny you're exactly right on the math but somehow forgetting that both times it was Mitch McConnell who held the country hostage. Listen if we can't call out wrong when it's wrong we deserve what we get. The Democrats not passing infrastructure, wrong. See it's easy. You try
