"Asked if a debt ceiling increase was “absolutely essential to avoid an economic crisis,” 51% of Americans said yes, with an additional 11% saying the debt limit would have to be raised eventually but “not for several weeks.”
"Among those who say they identify with the tea party, 52% said the limit does not have to be raised, and an additional 15% said the country could go several weeks without a debt ceiling increase."
Reporters Andrew Tangel and Walter Hamiltonbreak down the importance of the debt limit, and what may happen if Washington can't reach a deal in time: "Wall Street analysts predict a major sell-off in stocks and Treasury bonds – in part because it would scare investors who are uncertain about what would happen and make preemptive moves to protect themselves.
“It would put fear throughout the market and what would happen is you’d see an avalanche of selling,” said Quincy Krosby, market strategist for Prudential Financial. “And selling begets more selling.”
ICYMI: China uses fiscal crisis to call for 'de-Americanized world'
Yesterday, China's state-run news agency highlighted the continued government shutdown and debate over the debt limit as reason for a "de-Americanized world," specifically, one that doesn't rely on the American dollar as its reserve currency. From Money & Co:
"China also called for an end to the "pernicious impasse" in the U.S. over the raising the debt limit and ending the partial government shutdown, saying the world needed another reserve currency so nations could protect themselves 'from the spillover of the intensifying domestic political turmoil in the United States.'"
"Although Obama’s frontline goals, as he often said, were simple – Republicans should reopen the government and raise the debt ceiling with no demanding concessions -- his underlying aim was far more ambitious. The president and White House officials weren’t just trying to resolve this crisis; they were trying to prevent a sequel."