What are people's thoughts on this and how it's going to affect both the immediate and long term future?

I admit, I've been nearly religious about checking the news on this subject for the last few weeks. I find what's happening right now down there to be absolutly fascinating. Four days to go, and they're still talking about it. While I knew that this was going to run right through to the eleventh hour before they did something decisive, I had no idea it was going to be THIS eleventh hour. I honestly think that the debt drama is about as iconic an "End of the Empire" moment as you can get.

Don't get me wrong, I'm not expecting the US to go up in flames on August 2. I'm not even expecting a default. I'm firmly convinced that some compromise will be reached, or Obama will use the 14th Ammendment and announce a solution. So, I'm not looking for China to show up on the doorstep on August 3rd, waving defaulted bond statements (they own the biggest chunk of US debt) and claiming Alaska or California as their default. (yes, I'm being facetious). While the ceiling will be raised, the issue dealt with or swept under the rug to be dealt with after the 2012 election I think the worst of the damage has already been done.

The USA won't fall. When I said "End of the Empire" I meant it, but it's not a catastrophic end. It will take decades, and what the final result will be, I'm not sure. Just as I'm not sure what to call it when the world markets are in flux, the nation is being threatened with a credit downgrade, and all eyes are upon them.. AND THEY'RE PLAYING POLITICS WITH IT.

Seriously? This subject is what they're using for leverage? When there's doubt that the social security checks being sent out won't bounce next week? And they're airing all this dirty laundry while the world is watching. The entire back and forth over the debt ceiling reminds me of nothing so much as a Jerry Springer episode, with an equal amount of class, elan and propriety you'd find there. But like most train wrecks you just can't look away, even though you know you should.

My prediction (and a reminder, that I'm nothing but an armchair analyst) is the ceiling will be raised, the issue kicked down the road to deal with after the election (where I give it even odds of being actually dealt with or kicked further back) and the US is going to lose its AAA credit rating. Which unfortunately, has some serious impacts on us.

Since most of our trade is with the US, when they get downgraded, we will also be affected. Interest rates will go up, inflation will go up, the US dollar will slide, exports will go down, and sadly, I think gold may continue to go up as people continue to use it as a haven against currency. In other words, recession in the making. Sure, it's not a zombie level event, but recession is bad enough. As food prices go up, prepping and self sufficiency become more valuable.

Now if you'll excuse me, I need to go buy a pressure canner.