Will The U.S. Ever Default On Its Debt?

Had Democratic and Republican members of Congress not voted to approve a deal to raise the debt ceiling on Monday, today may have been a reprise of Black Tuesday. But they did, and it won't. For now.

Neither side got what they fully wanted, but the deal was a compromise between President Barack Obama and leading Congressional Republicans in a day and age where the word bipartisan has become a sign of weakness. In sum, it will allow the United States to borrow up to $2.1 trillion and cut $2.4 trillion in federal spending over the next decade. Notable additions include that of a new twelve member committee to recommend further spending cuts and a proposed amendment that would require the federal government to have a balanced budget, a lack of which has raised this country's debt ceiling time and time again.

For those of you reading this who didn't know or didn't care about the consequences of the United States defaulting on its debt at this time, here's the sobering truth. Those dependent on federal aid, specifically the elderly, disabled, and armed forces, would have had to wait weeks, even months, for compensation. Federal employees and contractors would have their paychecks suspended, as well. Interest rates on mortgages, loans, and credit cards would've skyrocketed. Stock markets, both in this country and the world over, would take a nosedive. Take all that, combined with the fact that the U.S. economy is moving upward at a snail's pace of 1.3% right now, and this country's financial reputation would've been permanently tarnished.

But most Americans aren't upset that a debt deal was passed. Its the political grudge matches that have got them fired up.