ETIS International

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Already today sticking out like a torch in an murky underground tunnel, are news stories in slightly different position camps with threatening undertones, with some saying the debt ceiling has to be raised or it is a financial disaster worse than 'government shutdown', and the complementary camp holding that the debt ceiling can for discussion contrast sake, does not have to be the focal point of change in priority over other strategies, responsible methodologies, and solutions for financial debts, or the repercussion is worst than 'government shutdown'.

Amongst the purposes of the ETIS Finance Blog at http://etisreviewsfinance.blog.com is the evoking of thought, so, the questions respective to the differing positions as to raising or keeping the debt ceiling the same, will not be asked by the blog post, rather, you ask the questions, some of which present themselves, and let us answer them, finding the best answers in a time is of the essence circumstances. Keep in mind, the authors of the stories and statements about raising and lowering the debt ceiling have renown credentials. Positions on the debt ceiling and website locations:

IMF head warns US debt crisis threatens world economy IMF managing director Christine Lagarde says failure to raise the US debt ceiling would be a far worse threat to the global economy than the current shutdown. http://www.bbc.co.uk/news/business-24384759

How a Debt Ceiling Crisis Could Do More Harm Than the Shutdown
By NATHANIEL POPPER
Published: October 3, 2013
Q. What happens on Oct. 17?
A. ...While new tax revenue will continue coming in, if the government cannot borrow, then it will not be able to pay all of the bills due that day.
Q. How quickly would big government bills come due?
A. ...If it missed any of its payments, the government would default on its obligations. If it missed an interest payment, it would default on its debt, which is considered particularly serious.
Q. Is Wall Street betting that the country will actually default?
A. When investors believe a default is likely, the stock market will almost certainly plunge.
http://www.nytimes.com/2013/10/04/us/politics/how-debt-ceiling-could-do-more-harm-than-the-impasse-in-congress.html?_r=0

Coats Discusses Dangers of Raising Debt Limit without Efforts to Reduce Spending
Thursday, January 31, 2013
Video embedded on site
WASHINGTON, DC – Senator Dan Coats (R-Ind.), senior Senate Republican on the Joint Economic Committee, today spoke on the Senate floor about the need for Congress to create a debt-reduction plan rather than continuously increase the government’s borrowing authority.
http://www.coats.senate.gov/newsroom/press/release/coats-discusses-dangers-of-raising-debt-limit-without-efforts-to-reduce-spending

Video:
Jack Lew on dangers of not raising the debt ceiling
http://video.foxnews.com/v/2717672427001/jack-lew-on-dangers-of-not-raising-the-debt-ceiling/

Both sides grope for solutions to shutdown, debt ceiling
Susan Davis, Aamer Madhani and Gregory Korte, USA TODAY 12:54 a.m. EDT October 4, 2013
"Obama emphasized the stakes at an event at a construction company in Rockville, Md., Thursday, saying Washington's inability to deal with the looming debt ceiling would be worse than the government shutdown. Distribution of Social Security and disability benefits would be delayed, and pensions would be decimated and interest rates would skyrocket, Obama said. "As reckless as a government shutdown is, as many people are being hurt by a government shutdown, an economic shutdown that results from default would be dramatically worse," Obama said."

Raising the debt ceiling does not influence future government spending; it is the federal government's commitment that it will pay off its existing debt. Failure to raise the ceiling weakens the U.S. government's commitment to the bonds it sells investors around the world and could lead to a major sell-off of those bonds, stimulating a global financial crisis.
http://www.usatoday.com/story/news/politics/2013/10/03/shutdown-day-three/2915259/

Debt ceiling: Countdown to default
By Jeanne Sahadi @CNNMoney
October 3, 2013: 12:40 AM ET NEW YORK
(CNNMoney)
"Congress is sowing the seeds of a debt ceiling crisis: If lawmakers don't raise the limit on federal borrowing soon, they will put the nation at risk of defaulting on some of its legal obligations."
http://money.cnn.com/2013/10/03/news/economy/debt-ceiling-default/index.html


Fri, Oct 4, 2013, 11:55 AM EDT
U.S. debt worries weigh on European equities
Reuters 7 hours ago FTSEurofirst 300 down 0.3 pct * Deutsche Telekom rises after UBS upgrade * Most traders expect eventual U.S. debt deal * Most see market dip in October but rebound afterwards * Buy into ESTOXX if it falls to 2,800 -Steppenwolf Capital

By Sudip Kar-Gupta
LONDON, Oct 4 (Reuters) - European shares dipped on Friday, extending a two-week slide as concerns over the U.S. government shutdown and debt ceiling weighed.
http://finance.yahoo.com/news/u-debt-worries-weigh-european-080010387.html

Further reading and basic background:

Investopedia explains 'Debt Ceiling' Before the debt ceiling was created, the President had free reign on the country's finances. In 1917, the debt ceiling was created during World War I to hold the President fiscally responsible. Over time, the debt ceiling has been raised whenever the United States comes close to hitting the limit. By hitting the limit and missing an interest payment to bondholders, the United States would be in default, lowering its credit rating and increasing the cost of its debt.
http://www.investopedia.com/terms/d/debt-ceiling.asp

There are boundless articles... they will not be able to fit on this one page.


An axiom, call it what you will, short cautionary tale for the moment -- -- A larger pie for dessert always looks better at first sight, but remember, the pan the pie came in is going to be bigger and going to require a larger cleanup.