What A Debt Default Would Really Mean For The U.S.

Are the Republicans that determined to beat President Obama that they will throw our country away? I am saddened by their attitude toward the elderly, those that are ill and our youth. The one thing that saddens me more is the amount of voters that believe that the Republicans in Congress are right. I agree that we need to cut our spending. I also agree that we need to increase our revenue. However, we cannot do that without closing loopholes in the tax codes and without raising taxes for the very wealthy.

President Obama has invited Republican and Democratic leaders of Congress back to the White House on Thursday, for more talks aimed at cutting the federal deficit. He's hoping to forge an agreement within two weeks, which would leave time to raise the federal debt ceiling before an Aug. 2 deadline.

"We know that it's going to require tough decisions," the president said Tuesday. "I think it's better for us to take those tough decisions sooner rather than later."

Unless the debt ceiling is increased, the government — which now borrows more than 40 cents of every dollar — would suddenly find itself without a working credit card.

"That means after Aug. 3, we'd be entirely dependent upon incoming cash flows to pay our bills," says Jay Powell, who served as undersecretary of the Treasury during the first Bush administration.

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