I've read with increasing alarm the remarks of John Boehner on attaching conditions to raising the debt ceiling New York Times article
So, it's time to think the unthinkable: what happens if the U.S. defaults?
I think that before this happens, we'll see a strong reaction from the markets. The dollar must go down in a default (because, what good is U.S. debt if there's a risk you won't get your money back?).
So, investors will start selling - perhaps big time. Perhaps soon.
I have to think that as this starts to happen - as the economy starts to tank - there will be extreme pressure to raise the debt limit.
If the debt limit isn't raised, the fiscal message of the Republicans will be shattered. If there's a default, they can no longer claim to care about the debt - which will rise dramatically, or jobs, or business.