• The Economic Spy
And what happens if the debt ceiling is raised with no cuts in government spending?
If the debt ceiling is not raised
On one side of the argument you have the doomsday crowd who will tell you that if the U.S. debt ceiling is not raised before August it will produce the financial equivalent of armageddon. The sacrosanct U.S. AAA rating will disappear overnight, the economy will collapse, the United States will default (technical) on its outstanding debt, no one will lend to us anymore and it would plunge us into a financial winter.
If the debt ceiling is raised absent any serious spending cuts
On the other side of the argument you have the doomsday crowd who says that if the U.S. debt ceiling is raised absent of any serious cuts in government spending, it will produce the future financial equivalent of armageddon. The U.S AAA rating will eventually go away (still possibly sooner than later if the warnings from the rating agencies are to be believed), the economy will collaps
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