Raise the debt ceiling Congress....or else:

The United States of America faces fundamental issues when it comes to controlling their debt.  The recent warning issued by credit-rating agency S&P about U.S. debt was not a surprise to anybody.  It only echoed a move taken by PIMCO in February, in which PIMCO announced they were selling their United States treasuries due to the “risk factor” that they believed did not properly reflect the return on investment they were getting by holding U.S. debt.   The negative outlook on the rating of U.S. sovereign debt is a sign that long-term fiscal challenges still remain and must be taken care of if America wants to continue to lead the world.

The nation’s debt totaled $9.67 trillion, while the federal government owes $4.6 trillion.  Public debt is $14.3 trillion. The deficit is currently projected to be about $1.6 trillion for the fiscal year that ends Sept. 30.  Republicans were elected to cut the size of government and make the government more liable for actions they take.  That does not mean not raising the debt ceiling, but I think it is a strong possibility we enter a period of political stagflation in which no agreement can come.

JP Morgan CEO, Jamie Dimon, spoke about what would happen if the government did not raise the debt ceiling.  In an interview with CBS, Dimon said: 

Every single company with treasuries, every insurance fund, every -- every-requirement that -- it will start snowballing.  Automatic, you don't pay your debt, there will be default by ratings agencies. All short-term financing will disappear. I would have hundreds of work streams working around the world protecting our company for that kind of event.

The day the United States can not finance their debt and decides to not raise the debt ceiling, is the day we need to run out to the stores and buy enough guns, bread, and water for a long civil disturbance.