Debt ceiling: Chaos if Congress blows it
July 13th, 2011
08:47 AM ET
7 years ago

Debt ceiling: Chaos if Congress blows it

NEW YORK (CNNMoney) - President Obama has put the country on notice that he can't guarantee Social Security and other government checks will go out if the debt ceiling isn't raised by Aug. 2.

So it's worth reviewing just what the fallout could be if lawmakers fail to act on time - either in early August or sooner if markets start to lose confidence that Congress will get its act together.


Filed under: Congress • Debt • Deficit • President Obama
soundoff (15 Responses)
  1. Rudy NYC

    It is not just the US markets that would be affected. The international markets would probably begin a dive before the US markets would. All it takes is for just one organization to express doubt and *pop* goes the hot air balloon that has been sustaining market calm.

    July 13, 2011 08:56 am at 8:56 am |
  2. Mike Helgert

    I know how to cut $93,090,000,00 per year from the federal budget. Fire our Senators and state representatives. That's what would happen in the real world if an employee wasn't doing the job they were hired to do.

    July 13, 2011 09:14 am at 9:14 am |
  3. Karen

    Weird, I think Obama has blown it. Maybe he should have spend less time fundraising and more time leading and running the country.

    July 13, 2011 09:15 am at 9:15 am |
  4. Republicans - The Not Intended To Be Factually Accurate" Party

    Republican politicians MANUFACTURED this crisis and any associated chaos.

    A debt ceiling extenstion has historically been a 1 to 3 sentence pro-forma bill. The GOP thought they could hurt the President by portraying it as something resulting from President Obama`s leadership instead of something originating from the spending & obligations foisted on the American balance sheet by the MEMBERS OF CONGRESS.

    I hope all those senior citizens, military personnel, and "working class families" which are so enamored with Barack Obama`s political opponents like McCain in `08, or Bachmann, Pawlenty, Trump, Gingrich, Romney, Perry or Palin REMEMBER that each of these people said the August 2nd date "was no big deal" – – that said there was NO Impact – – that said default wasn`t real. To all those citizens, when are you going to vote for YOUR self-interests instead of the "rich guy" you fantacize about being?

    July 13, 2011 09:30 am at 9:30 am |
  5. ConservaFASCISTS/Domestic Terrorists/Taliban/Al Queda/TRAITORS

    Congress better prepare for a revolt if the nation defaults.#thatisall

    July 13, 2011 09:33 am at 9:33 am |
  6. hilroy

    It is the two wars stupid and trillions wasted,rich and greedy ......wall street crooks,and foreclosures as a result which Americah put us in this mess. This is a the domino effect. Not Prez. Obama's fault but those who are messing things up to make sure the Prez. doess not get re-elected.. These eveil people will instead destroy America instead of destroying the Prez. How very sad indeed.

    July 13, 2011 09:37 am at 9:37 am |
  7. Dahly

    The deal that was on the table $3 Trillion in cuts and $1 trillion in tax increases, was actually just $2 Billion in cuts this years and "smoke and mirrors" promises for the future. These "Deal Brokers" can not be trusted. Cut, Cap and Balance, with no tax increases. Tax increases do limit new jobs, and that's not what's need in this economy.

    July 13, 2011 09:54 am at 9:54 am |
  8. Lynda/Minnesota

    Hey, GOPers. Do you really, really want to risk big business turning it's collective back on you during a presidential primary year simply to appease the TeaParty fanatics? I've purposely left off MainStreet America ... we all know where WE fit into your grand scheme spending cuts montage of rhetorical campaign speeches specifically depicting each of you as *one of us* nod, nod - wink, wink. Big business owns each of you - including, of coarse, ALL of the Republican controlled United States House of Representatives and a majority of the United States Senate GOPers.

    July 13, 2011 09:57 am at 9:57 am |
  9. SayWhat

    Its time that our elected officials stop pushing the iceberg in front of the Titanic and get the job done. We have run out of time for politicalp andering and posturing for the 2012 elections. Cut ridiculous spendingand subsidies, cut out tax loopholes that allow corporations to pay no taxes and raise revenue by returning taxes to what they were before the Bush tax cuts and let's get this country moving.

    July 13, 2011 10:10 am at 10:10 am |
  10. ricky vee

    More scare tactics from a guy who con man cover has been blown by his horrific and embarrassing performance as president. What a disgrace this guy is...

    July 13, 2011 10:21 am at 10:21 am |
  11. John

    All the Republican are doing Is Refusing to help America and Protecting the RICH and BIG BUSINESS. Rising of Taxes will not hurt the Creates of jobs. Having people Check stop will all most will hurt republican try helping president Obama for a changes and get the Economy better will have get more jobs. because if the Economy get better than the RICH and BIG BUSINESS will make more money and hirer more People. Your republican tax cuts for the RICH and BIG BUSINESS haven't work In Over six Years now and they never will work. Even a Idiot can see this. And not all you Republican are Idiot so way are all of you protecting the Rich and Big BUSINESS , you have to be getting something In return.

    July 13, 2011 10:23 am at 10:23 am |
  12. ep_vet

    Eric Cantor, singlehandedly, has killed the greatest opportunity that this country has ever had to eliminate our debt and gain a sound financial footing. His narrow-mindedness and intransigence demonstrate that he is not cut out for legislative leadership. He is a fine vote counter but a total failure as a consensus finder and builder. You HAVE to make a deal to do the job but he sees negotiation as a fools bargain. This failed exercise reveals the real fool!!

    July 13, 2011 10:24 am at 10:24 am |
  13. Angus001

    Just pull the funds from Obama Care and we can pay all our bills.

    July 13, 2011 10:28 am at 10:28 am |
  14. Four and The Door

    The Republicans have already agreed to raise the debt ceiling. Their terms were with spending cuts the Democrats have already agreed to. The Democrats have decided to hold it up to try and squeeze a tax increase out of this opportunity. Then Obama came out and said Social Security checks are not guaranteed. He does not care one bit about people who depend on Social Security checks. I wonder what it feels like when your heart goes cold like that.

    July 13, 2011 10:28 am at 10:28 am |
  15. rs

    If "Congess Blows it", I think this will demonstrate to the American people finally, that the Republican Tea Party under the leadership of Cantor, Boehner, McConnel et al is tied to an unsustainable and mantra of greed and are not just not negotiating with the President and Congressional Democrats in good faith, but in fact HAVE BEEN WORKING AGAINST the President, their Congressional Colleagues, and about 98% of us, the American people.

    As a result, Republicans, by failing in their roles as legislators, and failing the trust of the Amercian public must RESIGN their offices. It is the only tenable solution as their bid to hold us all hostage to their wealthy patrons must fail.

    Republican Tea Party- RIP

    July 13, 2011 10:32 am at 10:32 am |