Lawmakers of both parties, business groups and Wall Street companies have raised alarms over the prospect of a government default, which they say would be disastrous for financial markets and the U.S. economy. A loss of investor onfidence could spur a deep selloff in Treasurys, which could in turn cause broader financial chaos. Missed payments in other U.S. obligations, including Social Security benefits, could also cause economic pain.
Wall Street Journal
Is the United States borrowing capacity unlimited?
QUINNSCOMMENTARY 
It’s difficult to know what is going on here with exponential government spending in excess of revenues coming in. But it seems it can not be stopped regardless of good intentions. The history of past failed nations’ economies due to run away-inflation leads me to believe this is the fate of the U.S economy. Modern day financial shenanigans aside to obscure, it’s inevitable within our lifetime.
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The WSJ must have hit on a slow news day. Their alarmist verbiage is not going to become reality. The 2 sides will come to an agreement and life will go on. What can’t go on is unlimited borrowing by the federal government. It has to be slowed at least. Every where you look there is a mountain of debt, federal, state, and local governments borrow like crazy. Unfunded liabilities are the order of the day.
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About $96 trillion in total unfunded liabilities
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FAKE NEWS
The political games played by government & the media is shameful.
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What’s fake? Pessimistic perhaps, but hardly fake.
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You really think they are wrong and that’s alarmist?
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The description of all the doom that will happen is perhaps true and perhaps over stated in some instances. What is alarmist is talking it up today while we know that the debt ceiling has been raised over 100 times (taken from a column and I haven’t verified) and it always gets done. At least twice I do remember the squabble dragged on after the deadline. The Washington Monument was closed but Social Security was paid and the armed forces stayed ready. Scaring little old ladies is alarmist in my book.
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It appears that, to either party, the question is not so much how it will affect the economy and individuals, but which party will get the blame. If “they” get the blame, we win.
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The United States borrowing capacity is unlimited!!!!
How do I know this. Because the FED has said so, that they will be the lender of last resort if there are no buyers of government debt.
The talk about government defaulting on debt is what is FAKE!
Not the fact that our politicians are stupid morons spending on every stupid idea that is pushed by lobbyist, without considering future costs.
The $96 trillion in total unfunded liabilities is a very small problem compared to –
The derivatives market is, in a word, gigantic—often estimated at over $1 quadrillion on the high end. How can that be? Largely because there are numerous derivatives in existence, available on virtually every possible type of investment asset, including equities, commodities, bonds, and currency. Some market analysts even place the size of the market at more than 10 times that of the total world gross domestic product (GDP).
https://www.investopedia.com/ask/answers/052715/how-big-derivatives-market.asp
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