If the debt ceiling is not raised by 8/3, the Treasury will only receive about 60% of the revenue needed. This means tough choices have to be made on what and how much to pay. Should salaries be paid? Pay Social Security? Contractors? Bonds? Interest payments? There are no easy answers. There are no correct answers.
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About $100 Billion in US Bonds mature on 8/4. Will there be enough money to pay for those? Usually, costs are offset by selling new bonds, but that cannot happen. Because of uncertainty, Treasury bond interest rates will skyrocket. This not only affects future interest payments, but everything tied into it. Mortgages and credit card interest will rise sharply kicking the economy in the gut.
Why doesn't the GOP understand these things?
The Congress should just pass a clean bill with No Strings Attached and save the Theatrics for the next Budget Bill package.