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Concern rises in world financial markets. Does President Barack Obama reach an agreement on an increase in the debt ceiling? Time is running out. By the second of August an agreement must be in place.
U.S. expert at Southern University, Associate Professor Niels Bjerre-Poulsen, now see the risk that they will not manage to get a deal through. It would then be the first time in the country's economic history.
"It will without doubt be the dumbest thing that ever happened in the country's economic history. An own goal by dimensions, he says.
Warned of the consequences:
Barack Obama warned on Tuesday night about the consequences if the debt ceiling is not raised.
"If we continue on our present course, our rising debt will cost us jobs and damage the economy seriously. Even more of our tax dollars will go to pay interest on our loans," he said in a speech to the nation.
The internal wars in the congress are also a cause to the problems:
Niels Bjerre-Poulsen highlights internal wing wars among Republicans as the cause of the problem.
A small but powerful part of Republicans in the House sees debate on the debt ceiling as a chance to make political blackmail.
"If this group does not get all their conditions are met, they threaten to vote against an agreement on the debt ceiling," he says.
And just as confusing for voters, so Republicans have linked negotiations on the debt ceiling, coupled with its budget deficit and how it should be rectified.
"No one disputes that the U.S. economy's ability to meet its debt obligations. But you can begin to fear for the political will to raise the debt ceiling," says Niels Bjerre-Poulsen.
Originally posted by simone50m
Last night, I was speaking on the phone with my mother, who is on Social Security (Retirement). She does not have a computer, just watches local evening news. I was trying to very gently make her think about come August, no more money. She totally does NOT believe such, as if it's thoroughly -impossible- ! She said, "They are just playing political games, (it's all a bunch of political sillyness) otherwise, our money is there, how could it not be?" I decided not to push any further 'that bridge' to cross.
***There are many people like her out there who just don't want to go there*** .
Oh Mmmmy God.
Originally posted by usernameconspiracy
For anyone out there that doesn't think the "drama" of these debt ceiling debates isn't simply political posturing for the upcoming election year, I have only one question:
If raising the debt ceiling is such a horrible thing, why has it been done almost every year for the last thirty with absolutely no big drama at all? It has certainly been raised every year for the last ten. As for paying down said debt, the most logical approach is a combination of taxes and cuts, but that won't happen since it makes sense.