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RE :”President Obama and the Democrats are issuing dire warnings that the U.S. may default on its debts if the debt ceiling is not increased. This is a false threat. If the debt ceiling is not increased by August 2, it is highly unlikely that even one member of Congress would vote to stop paying on debt owed. They would not dare to be seen as voting to stiff other countries on money owed them by the U.S. Defaulting on our debt is a red herring argument Democrats are using to force people into thinking our only choices are raising the debt ceiling or raising taxes by closing tax loopholes. In actuality, once the debt ceiling is reached, it will come down to a choice of either raising taxes or finding areas to cut spending. Democrats don’t want to admit that cutting spending is a realistic choice. They are too dependent upon the votes of people who expect handouts. “

Eventually the debt ceiling will be raised or there will be a political earthquake similar to Greece in response. (Congressional Republicans McConnel/Boehner have already admitted this publicly so it is not a secret.) House Republicans couldn't come up with $100B in cuts themselves, so eliminating a ~ $1.5 T of spending in one shot would cause one hell of political earthquake. The only question is what changes to spending or taxes will be included in the bill if any, that and who voters will blame if the checks are held back. Congressional Republicans have already put their surrender plan on the table, but don't have the votes for it probably.

House Republicans have yet to pass their own debt extension bill with cuts to throw out to Obama and dare him to veto it. It is likely that between those that will vote against an extension and those that will vote against budget cuts, Boehner cant get a bill like that passed through the house now.

In fact I heard the “freedom of light-bulb act” bill failed in a house vote yesterday.