Failure to raise debt ceiling will create double dip recession

 http://www.csmonitor.com/USA/Politics/monitor_breakfast/2011/0628/Top-economist-Raise-the-debt-ceiling-or-blow-the-recovery-out-of-the-water

Top economist: Raise the debt ceiling or blow the recovery 'out of the water'

The US economy will double its growth rate by the end of the year, if Congress raises the debt ceiling, says economic forecaster Mark Zandi. Otherwise, 'we would be thrown into recession.'

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Mark Zandi, chief economist of Moody's Analytics and co-founder of Economy.com, talks with reporters at a Christian Science Monitor breakfast in August 2010. At a Monitor breakfast on Tuesday morning, Dr. Zandi warned that failing to raise the debt ceiling would derail the recovery.

Michael Bonfigli / The Christian Science Monitor / File

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By Dave Cook, Staff writer / June 28, 2011

Washington Mark Zandi, a prominent economic forecaster, says the US economy will gather steam in the second six months of 2011 – unless Congress fails to raise the government debt limit. In that case, “we go into recession, and my forecast would be blown out of the water,” he said Tuesday at a Monitor-hosted breakfast for reporters.
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Topics

• Unemployment Rate
• Lagging Economic Indicators
• Government and Politics
• Business
• Public Finance
• Economies
• National Debt

The chief economist of Moody’s Analytics, Dr. Zandi expects economic output to be growing at about a 4 percent rate by the end of 2011, versus 1.9 percent in the first three months of the year. “Weights on the economy are lifting,” he said, referring to diminishing effects of higher oil and food prices, as well as the impact of the Japanese tsunami on auto production.
Zandi remains wary of the return of high gas prices, he says, and thinks unemployment will fall slowly, but he remains cautiously optimistic about the overall economic recovery.
But Zandi's relatively upbeat outlook would change abruptly if Congress and the Obama administration fail to agree on a plan to raise the federal debt ceiling by August 2, requiring the government to dramatically curtail operations.end quote.

It is quite obvious now that the failure to raise the debt ceiling will do two things. The first thing is that it will create the end of the recovery and the second thing it will do is to re-elect Obama and put the Tea Party out of business likely permanently. So, there are only 9 days when both the house and senate are in session together between now and when the debt ceiling must be raised. So what will it be?

Raise the Debt Ceiling or create another recession which will end the tea party and re-elect Obama and elect a democratic congress. Actually I think its quite likely that Obama will be re-elected almost no matter what happens at this point because people are just so very insecure during these times.