The whole world is hearing that the US debt ceiling must be raised in order to prevent a default.
This boggles my mind. How screwy is a world in which one's creditworthiness is maintained to the extent that one continues accumulating debt!!! The US must assume further debt to be considered more creditworthy? WTF?
This is because the US in theory does not need to default they could just print money but in doing so they create inflation which would hurt the economy. Also the idea is that the GDP will outgrow the debt.
Think of it this way would it make sense for you to default on your credit cards or take out a home equity line of credit to pay them if times were tight?