Hello mountn man,
I’m new to this site and saw your post about the US credit rating drop. As a former MBA student, I’d like to make a point— raising the debt ceiling is not about taking out more loans. It was about not defaulting on loans that are already in place, as current government expenditure outweighs income. Not raising the ceiling would have meant a failure to pay off outstanding loans. If such a disastrous event were to occur, the US dollar would decrease drastically in value. It was such a big concern that even the threat of not raising the ceiling resulted in a lowering of our credit rating.
Please let me know if you have any questions or see any errors in my argument
Thanks!
Joe