Practically, it can be raised if enough members of Congress and the Senate can agree on doing so. Leaving all politics aside and the backlash from the US public who are finally waking up to notice the mess that we are in and the disaster that lays ahead, the reality is that it may not be feasible.
Their only option may be harsh austerity measures that have already proven in the UK to cause further damage to the economy. Their recent ridiculous solution of cutting a few billions off the budget and call it a step in the right direction is nothing more than a created illusion to entertain the public without having to admit that they are clueless on their ability to fix the problem and on how to proceed. The debate and lack of proper action on tackling the problems is a procrastination of the inevitable. Time is running out on the promise of a recovery that has never taken place but in fact the economy continues to erode at an accelerated pace in spite of having dumped on it trillions of dollar to stimulate it.
One cannot see the harsh real solution while trying to ignore the reality that many hundreds and not tens of billions would have to be cut from the budget. This means large cuts on the Pentagon budget and a time to stop fighting wars. It does not mean a cut in defense but a cut in offense, we have more than what is needed to defend our nation but no longer have the means to rule the world and that is a reality. This would cause a huge vacuum in the world but at the same time would perhaps offer nations the opportunity of really becoming sovereign. Thousands of Federal employees would have to be fired and basically restructuring government just like any corporation would do when faced with bankruptcy. This in itself would not be a solution either for the burden on the economy would be huge from the loss of jobs and decline on revenue as a result. An example would be Universities and the section of the economy they stimulate. What would become of Universities enrollment if the US government could no longer finance student loans?
They would love to raise taxes but the reality is that taken what little purchasing power the bulk of the American people have would hurt the economy further. This leaves them with the option of going ahead with the raising of the debt ceiling. The debate which is likely hidden to the public is not their desire to raise the debt limit but the reality that would ensue. Who is going to lend the US more money? The simple answer is that no one will and that is the real problem. The only way to finance an increase in the debt ceiling is for the Federal Reserve to announce QE3 as they have virtually become our sole lender. If the Federal Reserve agrees to continuing financing our endless debt, the dollar will be in greater danger and face the likelihood of losing the status of being the world currency and most Americans are totally unaware of its consequences.
As we can see there are many roads that we can take but all of them lead to the same place. We are in a debt trap and the fate of our economy has already been sealed. The sooner we recognize it and take the bumpy road to facing it the sooner we will begin to repair the damage that has already been done and one can be certain that it will indeed be a very bumpy road. It is clear that our elected leaders are totally blind while trying to win this guessing game.