A debt resolution was approved by the Senate and White House. The deal calls for a $2.1-trillion increase in the debt ceiling to around $16.4 trillion, which will allow the country to pay its debt obligations and spend. First of all, this is just adding to a massive debt load. In return, there will be spending cuts of about $2.4 trillion; but over a 10-year period!
The debt increase is not what we needed, but was essential. The government will need to focus on the cost side and implement its own austerity programs with discipline in order to cut the deficit and begin to work to bring down the massive $14.6-trillion national debt. It’s scary looking at the debt load and watching the mounting interest payments.
Red flags are evident and they are not only coming from Europe. It’s becoming clearer that the U.S. economy is at risk for another decline and possible recession if stalling continues and the jobs market fails to ignite.
For more: Don’t Just Look to Europe; U.S. Has Its Own Issues
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