There is no shortage of dire warnings about not lifting the debt ceiling. This, they say, will be a world-wide calamity. It just cannot, under any conditions be allowed to occur, for the outcome would be unimagined devastation to the world economy. Americans, will suffer as few remember; we are constantly told from various sources.
But, remember, we are talking about a technical default. Not a default default. This would be a default of our own making and non-forced! Unlike Greece, which does not have the ability to pay. It also would be a default with a purpose.
It appears the purpose, to firm-up a limit on the national debt, would produce a stronger America. Notwithstanding, the action of Moody’s, S&P, etc. regarding downgrading. Those rating agencies have problems of their own. Investors want safety first, so why is this stand-off not encouraging ?
The resistors to the raise in the debt ceiling are calling for a lifestyle change. Thus, the resistance to the resistors. Government largess is a lifestyle that has a constituency made up of political thinkers, political beneficiaries, and employed politicians of whole political spectrum. To make any incremental change is the forward march of the central government will be met with a formidable army.
Back to the debt ceiling itself; I personally feel the raise has a Constitutional guarentee. But, that is for the trained legalises. The arguments explained and defended would surely make good theatre, which appeals to politicians.