CBS reports that
President Obama has outlined the possible economic consequences of a
“default” resulting from Congress’s refusing to raise the debt ceiling:
The president ran through a list of the economic consequences of default, noting, “Social Security checks and veterans’ benefits will be delayed. We might not be able to pay our troops or honor our contracts with small business owners. Food inspectors, air traffic controllers, specialists who track down loose nuclear materials wouldn’t get their paychecks. Investors around the world will ask if the United States of America is, in fact, a safe bet. Markets could go haywire, interest rates would spike for anybody who borrows money, every homeowner with a mortgage, every student with a college loan. . . . It would be a self-inflicted wound on the economy, it would slow down our growth, might tip us into recession, and ironically, might increase our deficit.”
Read more: http://www.nationalreview.com/articles/337675/spending-spending-kevin-d-williamson
1 comment:
All these possible consequences are just awful, it’s clear that nobody wants everything to be this way. But I think that it’s time to stop borrowing money, because the debt of the Federal government is huge, it’s time to start living withing our means. It’s hard to find a way out of this situation. Lots of people in the US have debts, as it was mentioned, they need to pay off college loans, mortgages, no fax pay day loans online and etc and it will be insane if the interest rates will go up. The President and Congress should find a compromise, they should not borrow too much but at the same time it’s necessary to proceed making all the necessary payments and cover expenses.
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