Wednesday, January 19, 2011
U.S. Deficit
The article highlights the fact that when all is said and done, something has got to give when it comes to the United States' debt problem. Congress must approve an increase in the debt ceiling, and with Republicans now in control, that is unlikely to happen without significant concessions. The ability to carry debt is not unlimited, and the article points out that any default on Treasury debt would have catastrophic, world-wide consequences.
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2 comments:
i think that a debt ceiling would help to keep our national debt under control but in the long run i believe that the government is going to have to make significant budget cuts, and taxes increases to help solve this problem.
I think the main issue with the debt ceiling is that the Congress constantly increases the limit for debt. So what's the point of having to set the limit for debt ceiling? Printing money may help pay off the debt temporarily but this would lead to the devaluation of the dollar and possibly reach to double digit inflation?
Anyway, the policymakers need to get their minds straight and fix this up. :D
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