Debt Ceiling Getting Ready To Crash
The biggest question on the minds of the Congress and the President is what to do with the debt ceiling? Congress has a few more days to make a decision or for the first time in history, the United States may be defaulting on their loans.
Over the past two weeks the biggest issue that has been overtaking the news has been the debt ceiling. The problem that our nation is looking at right now is that we have too much debt and not enough money. Come August 2, 2011, if both the Republicans and the Democrats cannot come together on how to pursue туры в Кавказские Минеральные воды the debt ceiling and come to a compromise that will ensure that the seventy million people receive their social security checks on August 2, a lot of people will be out their monthly income.
What Could Happen?
There are several different scenarios that we could be looking at happening within the next couple of days to weeks.
The first scenario would be that the Congress can agree on a bill that will allow for a reduction of the United States debt by four trillion over the next ten years and will also allow us to actually raise the debt ceiling for this year and next. This will allow people to receive their social security benefits and allow the U.S. government to cut spending on many different levels and still afford to pay out where they need to.
The second scenario would allow the Congress to agree on a bill and still pay off the debt, but only around one to $1.5 trillion within the next decade or so.
The third scenario, which unfortunately is much more bleak, would be that the Congress would not be able to reach an agreement. If the Congress cannot reach an agreement on what to do, the United States will default for the first time in all 200 plus years of history.
Finally, the last scenario would be that the U.S. would be defaulted and the credit agencies would have to step in and lower the American credit rating from AAA to A or AA, which has not happened since America was in WWI.
What Happens Now?
The only thing that we can do is wait and hope that the right decision is made and for once we can see the Republicans and Democrats come together on a decision that will benefit everyone.
Unfortuantely, by the looks of it, the Democrats and the Republicans are fighting it out and not wanting to face one another. Sometimes you cannot help but look at our representatives and see them as snotty little children who refuse to play nice.
Sometimes I really wonder if our public representatives, which for those of you who do not know this, they are suppose to be representing us, seem to even have us in mind. It feels as though a lot of times all they want to hear is themselves speak. The Republicans do not want to raise the debt ceiling because they feel as though the $14 trillion deficit that the United States holds is bad enough. However the problem is that if the debt ceiling is not raised, the federal government will be unable to pay almost half their bills. Unlike many people who duck and dodge their creditors, the federal government will not be able to ignore these phone calls.
Deal Or No Deal
The bottom line is that if Congress cannot come together and actually make a decision that will benefit the country, raise the debt ceiling and also cut and cap to help us lower the deficit, we may be looking at a long road ahead of defaults and finical hardships. The problem that America is having is that they do not want to tax. We are trying to run our government on an archaic tax system that cannot support a twenty-first century government and society. I understand that people hate paying taxes, but hey guess what, taxes are what fuel our country to do things that it needs to do.
