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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 @ ///// Sources ////// ////// Doomsday Clock for U.S. Debt Ticks, With No Congressional Plan

53 votes Ended 10/05/21
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