Everybody is losing sleep in the U.S. over the fact that if we did not raise the debt limit, then it will devastate the U.S. and World Financial markets because it has never happened before. But even if we raise the debt limit, then there will be another time sooner than later to raise it again, where does it stop. Although default is a dirty word, but are the citizens ready to do the sacrifice to reduce spending and curtail the so called entitlements. We really should asking these questions here because we don’t have enough money to pay all the debts and our obligations and our future generations would be very much in debt trying just to pay off the interest let alone the principal.
Although a default by either the Greeks or the U.S. can play havoc with the world financial markets, but unless we put everything on the table to cut spending and raise taxes, we won’t have any choices. Although we can still print the money to pay for the interests and other debt but the confidence of the world markets would be shaken and the dollar would collapse. But we still have a choice, not so with the Greeks since they cannot print money or have the luxury of having a currency which is the world’s reserve currency. They will have no choice but to roll over or delayed their payment of interests and principal and then the scenario of default will be real. So let the defaults begin!