Dangerous move.
If interest rates spike before the deficits are brought to zero it all may collapse.
I read somewhere that if the interest rates go to 11% at the current debt level then it doesn't take all that long before all revenue will have to go to pay just the interest.
What's scary is that 11% isn't all that unimaginable.
Frankly, if the House doesn't do something much more aggressive than the 100B cut in the budget then it all will eventually collapse. 100B isn't a serious response to deficit spending in the Trillion range.
FWIW, Greece is at 12.6
So yes, thanks to Obama, the door to bankruptcy has been opened.
They really need to get the inflation rate and the deficit under the year to year growth. With revenues around 3 and spending at 4.5, they would have to cut spending down to around 3.3 trillion. They need to cut about 1.2 trillion or so to get the deficit under control.