Recently our nation's debt has exceeded a total of 14 trillion dollars. This amount of debt is truly ridiculous and is coming near to maxing out or national maximum debt law. The debt cap is currently set at $14.294 trillion but many politicians are looking to raise that number. Republican lawmakers are trying to use this crisis as a way to force the U.S. to undertake some well needed spending cuts in order to prevent this imminent disaster. I disagree with many of the the Unites States' spending choices and these cuts could help people now and the future generations of America. According to the U.S. Treasury, the debt cap could max anywhere between March 31 and May 16. Provided the government fails to raise the cap many federal benefits and programs will lose their funding causing many other problems within the nation.
In addition to hurting our nation internally, it would also hit our economy extremely hard and most likely cause another huge economic downturn. Some of the issues that would indefinitely result include hyperinflation and defaulting on many loans to nations such as China. Failing to pay these loans would severely hurt international relations and potentially put us at risk of retaliation.
This situation saddens me as I have seen many times throughout history where our nation has experienced periods of huge economic success. Our current situation is an unfortunate result of the choices our leaders have made. Although I do not completely agree with the idea of increasing the debt cap, I believe it may be our only option in order to prevent another economic and potentially international crisis. Overall, this situation is extremely tough and I hope politicians make the right decision.
Thanks to CNN for this great article.
http://money.cnn.com/2011/01/20/news/economy/debt_record_high/index.htm?hpt=T1
Thanks to CNN for this great article.
http://money.cnn.com/2011/01/20/news/economy/debt_record_high/index.htm?hpt=T1
