How the Debt Ceiling Issue Will Hit Ordinary Americans in the Wallet
Submitted by Katherine on Sat, 06/04/2011 - 21:45How the government handles the nation's debt limit will directly affect our personal finances in all sorts of important ways. Every time we've bumped up against that ceiling in the past, the legislative branch has simply increased the nation's credit limit. Our problem right now is that the United States is only a few billion dollars from reaching its $14.294 trillion debt limit, and our elected officials aren't ready to pick the simplest choice, the one that past Congresses have made. This time, there's debate.
Should they raise the debt ceiling in order to borrow more money? Or do they hold the line and start either defaulting on our debts or stop paying for other government outlays? Do they cut federal spending, and if so, to which programs? Or do they raise taxes?
Yes, our taxes are tied to the debt ceiling. As long as our country is under its debt limit, it can easily borrow money by selling Treasury bonds. Given that the government currently only raises taxes to cover 60% of what it spends, being able to borrow means that the services people depend on from the government continue. If America hits its debt ceiling, that option would be off the table. In such a scenario, the
government would have to raise taxes to fund the shortfall, cut
services, reduce its payroll, or do all three.
As America inches toward its debt limit, bond rates start going up.
And the interest rates on our car loans, our mortgage loans, our student loans, and our credit cards, to name a few, are tied to bond rates. So if bond rates increase, the interest rates on our personal debt also go up.
And, as if increased taxes and higher interest rates aren't bad enough, we could also see increases in the cost of living, and decreases in the value of the dollar.
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Jobs could be at stake not
Jobs could be at stake not only for those on the government payroll, but for those in the private sector as well. But if the debt ceiling isn’t raised and the government runs out of cash, at some point the president may decide he has to stop doing certain things, like paying government contractors, for example. That may not sound like such a big deal, but it is if someone in your family, or someone you know, is working for that contractor, or for the supplier of that contractor, or if that contractor is a big employer in your neighborhood or your state.
Debt, rising with Time,
k, you may find this video 'interest'ing.
The Money That Is Sold Abroad Is You!
http://www.youtube.com/watch?v=Cd-SLRyuRq0&feature=relmfu
all former presidents have addressed this, yet debt rises, indefinitely. None in america can solve it, and neither do they want to do it. Its a game to fool the rest of the people on Earth, specially those who have oil under their sands.
You can recognize the difference this way, american govt / banks create dollar$ out of nothing, while the rest of the world has to earn it, by supplying goods & services, that is the hard way. How do the magician$ manage to get away with it? because zion's BIS has given sanction, a franchise to loot, and then secure and supply the $ionist state U$rael.
They have an exclusive license from 'G--'.
Magic of U$ury, see = http://www.usdebtclock.org/
Tick$ & http://www.UsDebtClock.org ~
Trick$ - http://www.economist.com/content/global_debt_clock
A big reason the bond markets
A big reason the bond markets haven't gone crazy over the American debt, is because our taxes are so low. They say "hey, if you raised taxes, you'd get out of this mess".
Quick quiz:
Where taxes higher under Reagan or Obama?
The answer may surprise you.
Plan for eliminating the national debt in 10-20 years:
Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...
Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a
August
Geithner said things can pretty much be tied over till August and he will let the dogs out lol
donvino
I guess Timmy expects
I guess Timmy expects Lassie's going to save him.
Ok, here's the thing...
I'm no economist, but it seems to me that it's all basicly just play "Monopoly money" anyway, since the FED just prints more whenever they feel like it. We've all agreed to trade this "play money" for our goods and services, and so that's where its real value lies. So I don't understand why it matters if they raise the debt ceiling again. Even if they raised it to the moon - what difference would it make? What is all this debate really about?
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"Stand up for what you believe in. Even if you stand alone."
~ Sophie Magdalena Scholl
"Let it not be said that we did nothing."
~ Ron Paul
"You must be the change you want to see in the world."
~ Mahatma Gandhi
The debate is really about scaring the cowards.
If Congress shows some backbone (fat chance), the Fed will come under additional scrutiny, as it will monetize added debt and will finally be fingered as the REAL culprit in our economic disaster. However, Congress will fold unless Boehner is removed as Speaker. After all, Boehner folded on this year's debt reductions; Boehner defeated the Garret budget and prevented Ron Paul's cross-the-board proposal from coming to a vote; Boehner defeated the Kucinich Resolution, by introducing his own watered-down alternative. Boehner is a drunken b*****d.
That's why god invented
That's why god invented passports.
Eventually the best and brightest of us will simply choose to stop participating in America.