When the Treasury Runs Out of Cash
http://economix.blogs.nytimes.com/2013/10/08/when-the-treasury-runs-out-of-cash/?ref=economy&_r=0
This article spotlighted the U.S.'s debt ceiling problem. This October, the U.S. will be required to pay large sums of money towards things like social security and veteran funds. Because of this, many republicans have voiced concern about the debt ceiling. They've given Obama two options: either raise the debt ceiling, or ignore it by way of the president invoking the Constitution to override the debt limit and rack up more debt. Section 4 in the 14th amendment permits such an action. Most expert analysts suggest these are the two choice Obama has in the matter, since the Treasury is incredibly low on funds as of late.
I personally don't think that we're going to go with the raising the debt ceiling option. By not paying the debts on the allocated days said in the article, congress is essentially breaking a law. We can't have that however, so they suggest the president just overrides it and increase the debt we have again. The article also stated that should we take this option, the Treasury would be in default. This means that financial securities from the treasury can't be traded which would cause huge economic problems.
The U.S. is obviously notorious for its huge debt, and once again, we're proving that we can't handle having large sums of money at our disposal. I don't know what we've been spending the treasury's money on, but now we don't have enough to clean up our mess (once again). Eventually this debt is going to become so large it'll probably cause some sort of economic collapse. Congress is so blinded by their own squabbles that they don't have a care in the world for the others they've damaged from this debt. What's the solution? Their solution is to make the debt ceiling larger so we can rack up even more debt. The other is to use good ol' President Obama to use his power to essentially ignore it. This debt is like a tumor that won't stop growing, yet it is ignored. Sooner or later the tumor's going to cause a stroke, and I'm hoping to not take the full brunt of something I'm completely incapable of stopping if you feel me.
I don't think making the debt ceiling larger is a good idea. We need to find a way to pay off our debts not a way to increase the debt ceiling! Most of the debts are owed to the U.S. investors but not to other countries. It might be the reason why the government is ignoring it. As you said, this is not the first time this happens, people don't follow the laws they created!
ReplyDeleteThe whole reason why we have to face this decision is because of the Obamacare bill. The bill claims promises that it won't add to the deficit but anyone who believed that is naive. The deficit will add $633 billion to the deficit and is the root of the problem. At some point we need to cut spending from organizations that aren't really necessary and as a government not everyone can receive funding. I think our liberal government feels that every group deserves funding when we don't have the capital. At some point we need to realize that trying to please everybody pleases nobody.
ReplyDelete