[Deathstar 80]

Sorry, Deathstar, but I was going to respond later after following your links. I've been busy researching some equipment and just have not had time to spend on much else. I will try to respond later in more detail. I also am already convinced that our economy is headed for a collapse, so I don't get too enthused over articles that would simply reinforce my belief.

Interest rates will begin to climb rapidly at some point. If the US defaults on its debt, then it would spook investors, which would hit Wall Street hard. Short of a default, as our national debt rises it will become increasingly difficult to obtain financing for it. Interest rates on bonds will skyrocket and politicians will want to raise taxes instead of cutting spending to pay for the extra interest burden.

This country is not immune to the laws of supply and demand and history has many examples of countries undermining the value of their own currency until it becomes worthless. That is where we are headed. When wheelbarrows replace wallets, the government will probably start considering drastic measures.

Hoot Gibson, you don't have to apologize. Thanks for your reply, though. I honestly didn't expect a reply in just a few hours. Usually, I wait a day or two at least. The reason why I posted again asking for a reply was because I plan on telling others about this pretty soon. If I'm correct of what these videos are saying, then this would be pretty good evidence.

I just looked again at the article that I mentioned above, called "That Budget 'Battle'? Only a Skirmish". Here's a section of this article:

Possible Compromise

Prospects for compromise appeared to brighten last week when 64 senators, 32 from each party, urged Mr. Obama to seek a "comprehensive" solution touching all three hot-buttons -- discretionary spending, entitlements, and taxes.

But the paths from hortatory letter to long-term deal is steep. Newly empowered House Republicans would have to accept more taxes; Senate Democrats, fighting to keep their majority in 2012, would have to accept cuts in Medicare and Social Security. Referring to the Gang of Six, Robert Reischauer, a former director of the Congressional Budget Office, said, "The probability that their fruit will ripen to an eatable state is very low.

At least-common-denomenator outcome might yield targets for limiting spending and deficits as a proportion of the economy. As with the 1980s-era "Gramm-Rudman" efforts, it could include enforcement mechanisms to require later policy choices for meeting those targets.

But even that possible fallback has not eased fears of staemate. The Federal Reserve chairman, Ben S. Bernanke, has warned that tying a debt-limit increase to a long-term budget deal would risk default and fresh financial "chaos" as the nation tries to leave the 2008 crisis behind.

"The idea that this time some folks want to start the fire..." Mr. Warner said, his words trailing off. "You just have to hope cooler heads will prevail.

I know I'm asking plenty of questions already, but could you guys answer two more questions for me? First, what exactly does it mean for a country to default on their debt? I've tried to look it up myself, but I still don't think I fully understand what this means. Second, how bad is this economic collapse going to be? I've heard that it's going to lead to a second Great Depression. However, I've also heard that it's just going to be a slightly larger recession than the one we had in the year 2008.

Overall, I think these are the three options for our country:
1) Cut spending. (I'm not sure, but I think this could lead to a bad economic recession or even an economic depression.)
2) Continue spending and not increase the national debt limit. (This will lead to a default of our debt.)
3) Continue spending and increase the national debt limit. (It might take awhile, but this will eventually lead to a default of our debt.)