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On Saturday in his weekly address, President Obama warned of a 'dangerous game' ahead if Congress resists raising the debt ceiling. US debt has hit the current limit – $16.4 trillion.

President Obama said Saturday that he's willing to compromise with Republicans on taxes and spending cuts in coming months, but will not budge on honoring America's obligations as the national debt this week topped $16.4 trillion – the congressionally set "debt ceiling."

"I will not compromise over ... whether or not Congress should pay the tab for a bill they’ve already racked up," Mr. Obama said in his taped weekly address, his first of the new year. "If Congress refuses to give the United States the ability to pay its bills on time, the consequences for the entire global economy could be catastrophic. The last time Congress threatened this course of action, our entire economy suffered for it. Our families and our businesses cannot afford that dangerous game again."

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My Comment: So typical of Washington today .... the perpetual crisis. But what irks me the most is how much everyone is in denial with the situation .... that taxing, borrowing, and printing more money is going the solve the problem of government spending .... when in reality all that government does when it gets more money is to spend it and leave the debt crisis for another generation.

For anyone who is interested .... the best explanation that I have ever read that explains America's debt crisis is here.

Update: As to what is my prediction on the upcoming debate to raise the debt ceiling .... the Republican leadership have signaled that they are going to fight .... but I have seen zero evidence from this leadership that they have ever kept their promises on reining in spending. As far as I am concerned .... this is all Kabuki theater .... and in the meantime institutions like the Pentagon and those who are dependent on government for assistance are going to be put at the edge again .... even though I know that the debt ceiling is going to be raised again, and false promises of cutting the budget will be announced by everyone involved.