@jared444 "Can someone explain to me the implications of the...

@jared444

"Can someone explain to me the implications of the debt ceiling not being risen?"

At some point in the near future the US government will start running out of money. They will start out by closing non essential services and send Federal employs on "furlough".

1) Why would the Democrats not vote for it? It seems like it's in everyone's interest to rise the debt ceiling despite how much trump has pissed off the democrats.

It may be an opportunity for the Democrats to heap further political embarrassment on the Republicans. But when push comes to shove, I think they will vote for the increase.

2) If they don't rise the debt ceiling will the US have to default on its debt?

Not necessarily. If the US government cuts back on other spend (military, Medicaid and Social security), they can still meet their interest payments. Given Republican commitment to wind back entitlements, this is their big opportunity... But I don't think that the House Republican are suicidal.

3) If they do default, I don't believe the government has enough cash to pay off it's debt especially with GDP being so low. Where would they get the money? Printing?

Firstly, the US government has no intention of "paying off its debt". If somehow it could, it would create a whole range of different problems. The market needs US Treasuries.

US GDP was over $18 trillion in 2016, which is the highest it has ever been. I wouldn't call that "low". The US government could easily pay its bills by raising taxes.

It they do default, I don't think anyone will notice how much cash the US government has. They will be to busy panicing over whether they can still access their own cash as banks start collapsing.

4) What are the implications of a default?

Vladimir Putin will have got his money's worth...