(Your vote, please) US defaulting on debts would cause ...

I think that people massively overstate the impact of the government defaulting on their debts. Many governments have defaulted on their debts, and the results have been.... the government defaulted on their debts. We move on. So: No, the world economy will not fall apart. Yes, the dollar will no longer be the default world currency. No, the US economy will not fall apart. Yes, there will be major cutbacks in social programs, and possibly some riots. No, it does not automatically mean we have a Recession. Yes, it could mean they pass higher taxes which will cause a recession. No, there will not be inflation or deflation. Those are caused by changes in the money supply, which is caused by the federal reserve. Yes, 'the markets' will have a bump. They always do, because the markets are based on opinion, and the opinion is that government is going to mess everything up (which normally it does). The chances of the US defaulting on its debt, are very very very low. We can print currency. If needed, we'll print our way out of debt. Which of course will cause massive inflation, and harm the economy. But if we did default, that would largely keep the economy good, but ruin the government. It would ruin the government because everything government does would be cut, and those people would be mad and protesting and rioting. So government is more likely going to print currency and make the economy suffer, rather than face angry voters like Greece and Britain right now.

Think it's pretty much been summed up by the first few responses. Really we've been so close to defaulting for the past several years struggling to not. It probably wouldn't make difference if we did. It's not like there's gonna be a repossession or eviction or anything. They'll probably just tack on a 2 billion dollar late payment fee and treat us like we treat the struggling lower class.

I don't know if any of your choices describe what my happen entirely, but I think it will be basically catastrophic despite what those economic geniuses Michele Bachmann and Sarah Palin may say or CLAIM to believe. The US will no longer have a decent credit score is what it will amount it, in fact it will suck. I think we all know what happens to someone when they have bad credit - they either can't get a loan at all or if they do the interest rate is ridiculously high. That high interest rate will trickle down to all of us. Obviously, this will have a hugely negative effect on the economy. Nobody will be able to get business loans and nobody will be able to get mortgages, car loans or other things they can't usually pay cash for unless they're willing and able to pay outrageous interest rates and the high payments that will go with them. I don't know how we can avoid another recession under these circumstances. Then there are those who depend on the government to survive such as Social Security recipients and those who depend on Medicare for their health care. If the millions on Social Security, Social Security Disability or SSI don't get paid that means millions of other Americans won't get paid either, not to mention the people who won't be able to EAT or keep their power on without what is in many cases their only income. This whole situation has me furious! The debt we need to pay has already been incurred, it's not about NEW spending! I've considered calling the auto finance company where we financed our van and telling them I've reached my debt ceiling and although I know I bought the van a few years ago and agreed to make payments until it was paid off I'd changed my mind and decided not to pay the balance. Somehow I don't think I'd get away with that without some dire consequences. I've no doubt most of those fighting the hardest against raising the debt ceiling are doing so because they know full well it will mean very bad news for our economy which they see as good news for their political aspirations. Annie

I go with 5. But in the near future for the economy, I am wavering between 3 or 4. I am actually leaning towards 3 but that's mainly due to what is happening Britain and the direction our country really needs to go in to get things back under control.

2 or 3. We don't have to default on our debt, politicians are just unwilling to cut other spending. They would rather risk their much touted "full faith and credit of the USA" than cut spending on the special interest groups that help re-elect them