Debt limit

What happens when the debt limit becomes political? U.S. debt is not bad, it serves to stabilize international currencies as gold once did. So … enact a balanced budget and what happens to the value of U.S. debt? Placing the payoff of U.S. debt as a priority above all other things, the tax payers of the united states back the debt, with the balanced budget in place the value of our debt sky rockets as the stability of it is demonstrated to be absolute… it is a no risk bet, but the amount of it is decreasing as we are not generating more debt and are focussed on paying it back. As supply of debt shrinks, what will countries invest in? With austerity measures in the E.U. occuring, are the members of the E.U. in the same condition, will balanced budgets become IMF policy? Are they already? Of course such little research on my part really is pure laziness… It seems unlikely that petroleum dollars (the other alternative in the 70′s which had dire consequences during the oil crises) If the banks continue to be backed by the U.S. taxpayers, it seems possible that stock could be… oh floating currencies are so complicated.