I'm sorry for the short diary but what I want to say is not an involved idea. It's really quite simple.
Here's how we can end this debt limit debate and leave the republican court jesters on their asses. All President Obama has to do is issue an executive order that would abolish the the debt limit altogether. What's the purpose for a debt ceiling if you have to keep raising it anyway?
Although not specifically suggested how, ratings agency, Moody's offers the same idea.
As discussions over the debt ceiling heat up, Moody’s has put forth its own proposal to solve the problem: The government should consider getting rid of the limit altogether.
The obvious problem that the President would run into is the notion that he might be violating the "Congressional Budget and Impoundment Control Act of 1974". However, I think he'd win that argument because (1) the order doesn't dictate the budget, it only deals with debt and (2) he can cite section 4 of the 14th Amendment as support and justification for issuing the order.
Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.