US debt problems and global economy

What do you guys think about the current bickering going on between Democrats and Republicans over the debt ceiling ? If they don't reach and outcome, apparently the US will default and it would dwarf the 08 Lehman collapse. How long do you think it will be before the world gets fed up of being held hostage to the tussle between Republicans and Democrats every 6 months and moves away from Dollar as the reserve currency ?

I don't have time to comment on it all but may I please (on a slightly unrelated note) that I f**king hate the funding cuts to science. I am here trying to get access to awesome papers on NIH and and some pictures and related crap is not pulling up and my SO is waiting for NASA project (not sure what exactly but on their website) and freaking NOTHING.

Well most of the cuts were needed, but I doubt there will be a default. I think one party will give in eventually.

Originally posted by: TexanHolden

Well most of the cuts were needed, but I doubt there will be a default. I think one party will give in eventually.

I don't think every cut is necessary. Incremental tax increases in the top 10% tax brackets could cover some expenses. Also some military expenses need to be scaled back.

The problem is both parties are stubbornly childish. The Democrats want to push through every program and expense irrespective of pragmatism. The Republicans want to scale back government in every which way irrespective of pragmatism. This time around I'm skeptical of a compromise before we default and all hell breaks loose.

I think they will reach to an compromise and increase debt limit before 17. Since last few years it is becoming regular affair and world breaking news just like it gave jittery to financial market in 2011 when they increased it from 14 trillion, it became every year phenomenon , They will not unnecessarily drive the fragile economy towards recession with a default. When the 2008 financial crisis contribute a lot to the total debt , then why they will create another situation like that ?

It is a simple case, there is a rich guy living in your neighbourhood, you are poor and you keep on taking money from him, the only realistic incentive the rich guy gets is living there or else you will figure out creative ways to put him behind bars or make him lose him wealth, You dont give him any special privilege for taking the extra money.

When we speak about rich guy poor guy really it is intriguing that obama try to care is for all guy . US debt increased from 5 to 16 T since 2001 out of that indirect contribution of combine bush tax cut in 2002+ iraq afgan war+ 2008 recession package and bailout these three contribute 5 T. But we always hear from media by complianing people centred policies , Appreciate when US try run for its ALL ppl. In some surveys majority of US citizen supporting obama policies. For a country it should not matter how 1% or 5% super rich live their life it matter how 100% live.Still i think in this two party tu tu main main corporates have last laugh.