Debt Ceiling Looming

By | February 4, 2014

The debt ceiling is looming and the problems that happened in October 2013 will be on the forefront of many people’s minds.

Debt ceiling looming

The problems brought about by the closing down of the government caused many people to lose money and a reduction in income. This was because of the reduced number of people that were spending their normal amount of money on food and beverages and other essential services, because they were unsure if they would be paid. There was a reduction in the number of people that were travelling to their place of work which would have affected the sales in transport and other businesses. This would have reflected in businesses who would have lost money.

Trapped

It is possible that the Republicans have caused themselves to become trapped; they have no-where to go when it comes to rising the debt ceiling. There are no other alternatives. What the problem is, that no one wants to admit, the monetary system is about ready to collapse, and they just aren’t prepared to be the ones in the frame when the collapse happens, without demanding that the collapse wouldn’t have happened if they had been listen to.

The claim which they are still proposing is, they don’t want to change their opinion because ‘the ‘full faith and credit’ of the United States at risk,’ according to the Business Insider.

But when the agreement was reached to re-open the government there was no specification which was needed to be adhered to; this in itself is unusual because the Republicans are known for asking for particular demands in exchange for the rise in the debt ceiling. This started in 2011 with the demand for spending cuts.

All parties have agreed that the shut-down was not the right thing to do. It caused more problems than what it actually achieved. But the question still arises, if there were any lessons that either party learned? The more likely answer is no, neither want to default on the loans and payments that they are required to pay. This would cause even more problems, and each side is blaming the other for not listening to the demands.

But neither side is willing to work towards a common goal, but the problem of the debt crisis is not going to go away, it will be temporarily resolved until the next time that it needs to rise. But the problems are less and will provide fewer options open to each side to try and negotiate a deal. There just isn’t much more that they can do except to increase the debt. The President is looking for a raise in taxes but the Republicans are not open to this.

So, the options that are left are very limited; each time the debt ceiling is reached it will mean that there will be a discussion on both sides as to the potential options. But the problem is that there are no options left; something is going to have to change the whole system if there is any possibility of the debt ceiling not being reached.

But if this was to happen it will be part of a global economic collapse, many people believe that this is the only option left. What this would mean will totally change the world forever.

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