The debt ceiling functions primarily to give negotiation leverage to the minority party. The problem is, if the threat of not raising the ceiling is executed on then it hurts both parties. Even the possibility that the debt ceiling will not be raised is collectively hurting us. This credit default swap is one signal of the negative impact these debt ceilings negotiations have. We really need a reform on the way the US handles debt, one that provides more predictability.<p>A no-nonsense solution would be to make raising the debt ceiling part of the annual budget or any bill that that has an impact on the budget. Another potential solution would be to make increases on the debt ceiling automatic based on a percentage of GDP, or over time. Another solution would be to reduce the national debt. We have options, and it almost doesn't matter what we choose because our current path is too volatile.