Prediction on the Debt Ceiling

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The debt ceiling will be raised, probably mere hours before the deadline. The package the Republicans agree to will probably include deep cuts to various social programs geared towards low-income earners, cuts to social security and medicare, and a few tax increases largely born by the middle class (they'll be few tax increases for the wealthy).

Obama should mint two trillion dollar coins and deposit them in an account at the Fed and pay the bills that way. And for those claiming that this would be inflationary, well, the Fed in recent years loaned 16 trillion to banks according to a recent audit at extremely low interest rates, thus expanding the money supply.

No it doesn't. The Treasury has unlimited power to mint coins. They'd mint two platinum 1 trillion dollar coins. The Economist ran an article praising this plan.

Boehner is running out the clock. He knows he'll need Democrats in the House to pass anything. He just wants 1 minute on the clock when he finally turns to them. Then he'll say, "we have no time to put in anything for you". I'm sure they'll try to get SS and medicare cuts into the Reid bill, but the Senate can play the same "out of time" card.

Obama has several options if nothing passes, including paying our debts but doing a government shutdown to ramp up pressure.

Unfortunately, I agree with everyone else. Something will be passed at the last minute, it will heavily favor the Republican position, and Obama will say there was nothing he could do about it. It's a game of "good cop, bad cop" - they're really all on the same side, and it's not the peoples' side.

A veto and a government shut down might work for Obama. (And, come to that for GOP Republicans).

Polling suggests most outrage is directed at Congress, and politically, Obama has very little to lose in vetoing legislation that does not provide him with two budget cycles worth of borrowing, and a commitment to revenue increases.

Meanwhile, a government shutdown, and disruption to medicare and social security could start to dampen seniors' ardour for the Tea Party. A steady stream of older voters in support of GOP candidates in Republican primaries could be a significant win against the Tea Party.

I am no longer quite so sure of an 11th hour deal.

I am confident that the politicians will reach a deal before 8/2. They understand that the repercussions for defaulting would be worse that the 2008 financial crisis. They also understand that voters will not re-elect them if they allow the economy to crash. The primary objective of President Obama and all the people in Congress (both Republican and Democrat) is to be re-elected. Therefore, they will reach an agreement so they can have a chance of remaining Representatives/Senators/President.

This agreement will absolutely include an increase to the debt ceiling. If this doesn't occur, the US will not be able to pay the debts that it already owes. There will not be any major cuts to Social Security or Medicare because these cuts would anger the elderly. Nevertheless this issue should be addressed before the Baby Boomers take all of the money from Medicare and Social Security in the near future

Debt Ceiling Cat is watching Bernanke masturbate.

*Insert sinkhole*

i think congress will come up with a quick fix sometime this week, and then in 4 months this debate will resurface.

this is just a foreshadow.