Before you read any further, please take another look at the Debt Widget above. Over $47,500 owed per citizen... Uhh. Uhh. That should scare us...
My best guess is that we will get some kind of sleazy deal on the US Debt Ceiling Extension that will likely involve fake spending cuts, some stealth tax hikes and letting .gov merrily go about "spending as normal."
If we get a BAD deal here (lots of taxes, no spending cuts, another kick o' the can down the road, etc.), then I would hereby declare to the world:
We now have the Biggest, Baddest, Slimiest, Sleaziest, Most Criminal Deal in World History!!!
I really hope that we get a GOOD deal from the negotiations between the Rs and Ds and Obama.
But, the issue that I would like to explore with you is:
What happens if they fail to reach a deal, and we "default" in one or more ways?
Do we default on Treasury debt payments (with very bad consequences)? Do we cut spending as Obama sees fit (ie, selective cuts at his own discretion)? Will Obama find a (likely unconstitutional, but so what?) executive way to go beyond or extend the Debt Ceiling?
What will happen in the financial markets? To gold?