The Consequences of the Debt Ceiling Fight

I just saw on the news that 38% of the people think failing to pass an increase in the
national debt is a good idea, which means that 38% of the people are financially illiterate.

In round figures, the national debt is 16 Trillion, the interest on that debt is 400 billion or 2%.
The deficit this year is $600 billion. So, let's imagine that a default caused interest rates on
government debt to spike to 40% from 2%. That would make our deficit 8 trillion dollars,
or half the total output of the country. Try living on half the pay you have now and imagine
the country in the same shape. Could you avoid bankruptcy? Think 40% is too high?
That was the rate of Greece at the height of its crisis. Today Greece is at 10%, so we'd be
talking about only 2 trillion up from $400 billion. And if you think we have to do something
drastic now to avoid Greece's fate, the deficit is dropping now at the fastest pace in the last
60 years because tax revenues are increasing and the stimulus has ended. It is reaching sustainability.

No, refusing to raise the debt ceiling would destroy America as a prosperous country.
I can only hope that a majority of Congress is smarter than its constituents.

***

I agree - this is how stupid most people are.

It's so crazy for pundits to have such strong opinions on Obamacare when it's not started yet.

Shouldn't you SEE a movie before you write your review?