According to Timothy Geithner, “Never in our history has Congress failed to increase the debt limit when necessary.  Failure to raise the limit would precipitate a default by the United States.”  [Read the full Geithner letter to congress here]. So little Timmy wants to increase the debt ceiling or the US defaults. BUT here’s another view point worth considering (check this previous post). Karl Denninger warns that in increase in the debt ceiling “will have serious and irreversible consequences”. Based on these opinions, US seems to be in a catch-22…