Markets Weigh Two Government Shutdowns, One Bad and One Awful - CNBC.
I will use this as the virgin post to my new blog, Five Cents Worth. This article is about the looming US Government shutdown expected if the lawmakers can't resolve their differences and agree on our nation's budget. The FY 2011 budget, proposed back in July 2010 by the President, has been delayed six times so far since October 2010, historically the most in one year. For the past thirty years, the budget has only been delayed one time per year.
So, what are your thoughts on this matter.
Why do you think it's taking so long to resolve the nation's budget? Well, what is there at stake here? What's the BIG picture that they don't want everyone to know? Is it more than just the HUGE deficit the country has? Is it about losing the financial edge in the global economy?
Be nice! (This isn't to bash Democrats or Republicans). This is to present your opinion on what is really going on.
Five Cents Worth is a centralized opinion posting area. Everyone’s point of view on a topic is different, so here's your chance to inject your take on a particular subject. Add your five cents worth to existing news articles and stories or post your own news articles.
4/7/11
3 comments:
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Who cares anymore? It's just a big game they are playing, but it will affect all of us and THEY, the politicians, just don't care. They are puppets and the Big BANKS are the puppet masters. Politicians are dancing to their tune, not the voices of the American people.
ReplyDeleteIn a nut shell, our country owes too much money and is not able to pay all of its debts. Our outgoing monies exceed our incoming monies (deficit). From the United States Public Debt on Wikipedia.org, "As of March 25, 2011, the Total Public Debt Outstanding of the United States of America was $14.26 trillion and was 97.3% of calendar year 2010's annual gross domestic product (GDP) of $14.66 trillion.[see citations within content of Wikipedia page] Using 2010 figures, the total debt (96.3% of GDP) ranked 12th highest against other nations.[no citation given]." These are very scary figures from a financial perspective.
ReplyDeleteThe above cited webpage is a great source of the financial picture the lawmakers are facing right now. Unfortunately, the lawmakers are busy trying to play a he said, she said game of who dunnit instead of simply putting all of their views aside and fixing the major financial problems facing this great nation.
What would happen if you owed that much money and didn't have enough income to continue paying your debtors back?
The underlying problem is that our country is spending way more than it has and BORROWING the money to make ends meet. Sound familiar? When someone can't make ends meet with their personal budget, they borrow money in the form of personal loans and credit cards to make ends meet. Over time, they get further and further into debt until they are forced to go bankrupt.
If it were that simple! The United States just can't file bankruptcy to get out of this one. All of the countries we are indebted to want their money and they won't simply write it off. They must be careful though. If they sell off all of the Government supported bonds they were given as collateral for the money they loaned the United States. The leader of US Treasury Securities is China followed closely by Japan. Who just became the most powerful economic power in the world? China!
So, how do we get out of this predicament before the dollar is deemed worthless and our way of life is threatened? Even with budget spending cuts in the trillions, the country will never be able to catch back up and pay off all of its debt. And raising the debt ceiling in May will only compound the problem even more, allowing for more debt. Printing more money is a big no no as well. The more money our treasury prints devalues the dollar that much more.
What's killing the finances of the United States is not the debt itself, but the growing interest on the debts and the increase in spending every year. Major changes are going to take place in the next year or so that will affect us all. It's only a matter of time until everything spirals out of control and all of the major powers in the world lose confidence in the United States' ability to repay their debts. This will devalue the dollar to the point of worthlessness.
Here's a link I'd like to share that relates to my last comment. It's about the Toxic Dollar: Why Nobody Seems to Want US Currency and directly relates to the devaluing of the dollar.
ReplyDelete