debt ceiling agreement reached

[Jamez]

First.

Still has to be voted on by both parties but a plan has been agreed upon

Not that this was a huge surprise, debt ceiling has been raised 102 times in the past.

With less than 2 days left, If both parties don't pass the deal America will default for the first time in history.

[Rod38um]

With less than 2 days left, If both parties don't pass the deal America will default for the first time in history.

Actually no. We would still have plenty of income to meet our debt obligations. However it would be up the president to decide who got paid and what programs were funded or cut. If anyone but Obama were president, the republicans would have probably risked it and let him make the cuts. but with Obamas spending record they were afraid he would pay all his pet groups like Acorn and then let debts go into default causing world economic crisis.

Personally, I dont like the agreement. They can call it a cut if they want to but its still higher spending than last year..... to me, thats not a cut!

Edited August 1, 2011 by Rod38um

[jporter12]

They can call it a cut if they want to but its still higher spending than last year..... to me, thats not a cut!

[Cbosman]

Woohoo go government .... :'(

[Jamez]

Actually no. We would still have plenty of income to meet our debt obligations. However it would be up the president to decide who got paid and what programs were funded or cut. If anyone but Obama were president, the republicans would have probably risked it and let him make the cuts. but with Obamas spending record they were afraid he would pay all his pet groups like Acorn and then let debts go into default causing world economic crisis.

Personally, I dont like the agreement. They can call it a cut if they want to but its still higher spending than last year..... to me, thats not a cut!

The big thing that concerns me is how this will effect the dollar. Right now America can borrow rediculous amounts of money because the dollar is the only currency accepted worldwide. In fact the dollar is the only currency accepted by big oil. That means that if say Turkey wants to buy Xmillion barrels then they have to exchange Lira for dollars and then make the purchase. We can only continue to print money as long as it is considered the standard. This is slowly changing and some countries are no longer accepting the dollar. Its being devalued and the dollars status is being muddied by terrible facts such as the possibility of default. America can lose its AAA credit rating and the dollar will in turn take another hit. Something like half of all printed american currency is in foreign countries and if we default and are unable to meet all of our obligations then the dollar will suffer. The US will be forced to pay billions more in higher interest owed to other nations and combined with the lower demand for US currency could cause severe reprocussions in the American way of life. Why would you accept a form of currency that you weren't sure was good. You wouldn't.

What does this mean for you and me? Prices on goods and services skyrocket because we are tapped into world economy so much. Oil prices would match what most of Europe is already paying ( 7+ dollars ) a gallon because we get a huge break on fuel seeing as we do not have to convert and are already paying with the dollar.

Interest rates for home loans or cars would skyrocket.

1 word - GREECE

Edited August 1, 2011 by Jamez

[Rod38um]

A debt agreement just pushes the crisis date further away and the higher debt just insures it will happen. China has already warned us to "get our financial house in order" and this agreement flys in the face of that warning. This is not a cut in spending. 4 trillion this year would have been a minimum to be considered a cut this year. A crisis is coming.........soon...... actual date unknown.

[Casper]

A debt agreement just pushes the crisis date further away and the higher debt just insures it will happen. China has already warned us to "get our financial house in order" and this agreement flys in the face of that warning. This is not a cut in spending. 4 trillion this year would have been a minimum to be considered a cut this year. A crisis is coming.........soon...... actual date unknown.

The crisis is here. It's just going to get worse.

[Simplysix]

The crisis is here. It's just going to get worse.

Agreed

[Rod38um]

The crisis is here. It's just going to get worse.

Perhaps I should have said "collapse" instead of "crisis"

[Scruit]

Spending will always go up as long as we keep having more babies.

[psyco1]

Time to let all these other countries tend to their own defense, it'll bankrupt us trying to be the worlds police.

[buildit]

Wanna know if your rep voted no?

Here's a list. Not a single dem voted yes.

Member Party Dist.

Marcia L. Fudge D OH-11

Jim Jordan R OH-4

Marcy Kaptur D OH-9

Dennis J. Kucinich D OH-10

Tim Ryan D OH-17

Betty Sutton D OH-13

Michael R. Turner R OH-3