Media whirlwind or legitimate threat to average people?
Media circus and as already pointed out, consent manufacturing for further social spending cuts.
Not only is it a circus, but the debt ceiling simply must be raised for the US project to have a chance of continuing. It’s not a point of discussion. If the US were to default on its debt, a plurality if not still a majority of global monetary reserves would likely crash in value, causing a global recession like no other. For what is the US federal debt but treasury bills, and since 1971 US treasury bills have been used in lieu of gold as the primary central bank asset backing other currencies.
The US ruling class is terrified of the current slow moving dedollarization, but since it’s happening slowly everyone can adapt to the US no longer being the global monetary and imperial hegemon. Now imagine this slow moving dedollarization train happening simply overnight, for that’s what I think would happen were the US to default on its debt. It would be absolutely catastrophic.
To add a point to some of the other posts here. The oligarchy cannot afford to allow a default. It would drastically impact their power. People like to say that if the US falls the rich will just jump ship but the problem is, they are running out of places to jump too and any place left will have less of a military to defend them thanks in part to US imperialism. The US empire will cannibalize it’s vassals first, which we are already seeing. Where will the rich run to after that? As China grows in strength more nations join their influence. So with growing communism on one side, a decaying empire on the other, their only play is to retreat to the center and/or try to make one last break for dominance by taking down China. If/when they fail at taking out China their last efforts will be controlling the ever crumbling US via fascism. The US is their last refuge in light of growing global communism. It may be decades off yes, but as it grows their safe havens will shrink more and more. Private islands, tax havens, etc., are only safe if you have a big brother military to defend them for you.
