THE DEFICIT REDUCTION AND THE DEBT CEILING.
Two hard nuts to crack.
Deficit reduction and Debt ceiling are two difficult issues facing the United States presently; however, they must both be dealt with strenuously enough for the country to come out of the present recession.
More than that, they can cause so much economic calamity of extensive proportions that will affect the dollar dramatically. Its value will decline, and that will cause the price of everything to go up. Financial transactions of all kinds will cost more. Business and car loans, credit card and student loans, all seem to be in jeopardy.
The stock market and other financial institutions will all be impacted in all sorts of negative ways, and it will take several months, if not a number of years for them to fully recover.
The economy will be damaged without doubt, as almost all economists are predicting, and the outcome will not be pleasant for every person in the country. Unemployment will remain high or it will even begin to soar higher, as businesses start to close in large numbers. The cost of living will rise and thus plunge the fragile economy that the nation is now experiencing into a tailspin.
The deficit can be reduced by using careful planning, and taking measures that will make the nation capable of living within its means; however, it will take a great number of positive and vibrant steps for that to happen. Yet, America is at a point, where it has to be able to pay its bills and remain a safe haven for investors; their capital is needed to grow the economy once again. The crunch comes, when it must find a way to avoid default; hence, it must raise its debt ceiling.
The two issues are two hard nuts to crack, but if politicians will put their heads together and stop being critical of each other's ideological leanings, they will be able to do so. They are rather fighting among themselves, and that will be pushing America into a state of emergency, whose outcome is extremely terrifying.
A deadline of August 2nd, 2011, has been set for the nations debts to be paid in full; and if an agreement between the Democratic Party government and the Republican Party opposition is not in place before that date, all hell will break lose.
The country's financial woes will become insurmountable from then on; and for what? Because a few intransigent politicians have decided to turn a deaf ear to the pleas of the citizens of the United States; and all they (politicians) are interested in is to score political points and nothing else. Why and again, for what? You may be asking.