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Can Someone Explain The Debt Ceiling Controversy?
From Current Events Forum:can someone explain the debt ceiling controversy? I have been hearing so much about the debt ceiling issue on the news, yet I can't find a news site or any site that can explain it to me. what is the debt ceiling? why should it be raised? why shouldn't it? and what do the democrats and republicans want?
Answer: A national debt is caused when a government spends more than it raises in taxes. The debt in the USA stands at about 14,25 trillion dollars. Amendment 14 of the constitution only allows this to rise to 14,3 trillion, after this sum is reached, no extra debt can be allowed for the government to use. This means that the USA will not be able to pay all of it's existing commitments, and will thus default on these. Technically, the USA will be declared bankrupt. This is what defaulting means. The Republicans have a majority in congress and they block everything from the Democrats. The Democrats have a majority in the Senate and they block the Republicans suggestions. The Democrats are willing to compromise but the Republicans do not. They will not accept any tax increases because the "tea party" right wing Republicans have sworn not to allow this. This debt ceiling of 14,3 trillion can be raised by an act in congress, with senate support. GW Bush did this many times, as he nearly doubled the US debt during his 8 year "watch". The problem is that this has been done too often, and now the worlds financial markets don't trust America's ability to repay. Even if there is a compromise agreed upon, if these markets don't think the solution goes far enough, the USA will lose it's AAA credit rating. Should this happen, the interest at which the USA borrows money will rise significantly. Then, ALL debt in the US will be more expensive:- IE... mortgages, credit cards, bank loans, business loans etc. Not a pleasant thought for you all ! But you must thank your "tea party", because it is these people that want the US to default. Then they think they will have more ammunition to blame on ABM. And the destruction of ABM is ALL that interests them. That is why they have been spreading anti-Obama propaganda from the very second he took office. He's a Muslim He's not really American He can't handle the economy And much much more. Have you seen this sort of thing ?????? You know I am not lying then ?
What Is The Debt Ceiling Anyway And Why Would We Raise It?
From Politics Forum:What is the debt ceiling anyway and why would we raise it? If the debt is up to the ceiling, why not just remove the ceiling rather than raise it? If it's raised, wont the debt eventually just build up to the ceiling again anyway? Why not just remove it?
Answer: It is a myth. We will borrow until Red China quits lending. . 14.29 T$
In Your Words, What Is The Debt Ceiling And What Would Raising It Do?
From Politics Forum:In your words, what is the debt ceiling and what would raising it do? Feel free to add your particular political ideology.
Answer: Permission to repay money that has already been borrowed and spent. Raising it gives such permission. Nothing more. And anyone who thinks THAT is a poor idea is a fool.
What Are The Debt Ceilings In Other Countries Such As Germany, England, Japan, Canada, Brazil And Australia?
From Economics Forum:What are the debt ceilings in other countries such as Germany, England, Japan, Canada, Brazil and Australia? How high is the debt limit in other places? Sorry I didn't word the question better. I meant countries that are doing well, not countries like Greece. England isn't in the EU. Thanks for all the informative answers.
Answer: In Europe, there is a common monetary policy in the Euro zone conducted by the CB in Frankfurt.But there is only guideline on fiscal policy. Based on the guideline, a country has to control budget deficit to be lesser than 3% of GDP.But there is no sanction or punishment or even a specific investigation.Greece has done such a thing for too long behind the blackboard.Only the application for new membership is scrutinized and proved until the guideline could be imposed.Now it should be the fiscal pact with sanction and punishment proposed by Germany and France.It has been accepted by 26 countries,except England.The money is not a problem if everyone is going back to work.
What Is The Debt Ceiling & How Does It Work?
From Politics Forum:What is the debt ceiling & how does it work?
Answer: It is a self-prescribed credit limit. If the debt ceiling is reached the government can't sell new debt.
What Is The Debt Ceiling, And What Is Default?
From Other - Politics & Government Forum:What is the debt ceiling, and what is default? Why is it bad to raise it? Or lower it!?
Answer: The government borrows money just like a person using a credit card. Only instead of borrowing from one or two or three sources, it borrows from many in the bond market, especially the Federal Reserve and foreign central banks/governments. For a person, how much they can borrow is set arbitrarily by agreement with their lender who evaluates their history in combination with their income to figure out how much they can borrow and safely pay back. The government however is SO big and has SO many lenders, that the only practical limit on their borrowing is the size of the economy. But if you borrow so much that you push that practical limit, you damage the economy. So to make the government borrowing limited, congress has a statutory debt limit. The problem is that the very people who spend the money are the ones who control the limit. Imagine a college student with a credit card and the ability to set their own credit limit. They'd spend like crazy. Congress has spent like crazy. Default is when you fail to pay your debt obligations, temporarily or permanently. The US govt is still very capable of paying it's debt. Our public debt to GDP ratio is 98% (72% federal). That's high enough to be a problem, but not so high that we couldn't pay. Economists have observed that debt that high tends to slow the economy significantly. So since we are borrowing 40% of our budget this year, we need to keep borrowing or we need to cut spending. The debt ceiling debate is about trying to make sure that when we raise it again, that we have done something to get our spending problems under control. In that light, it's a good thing to have this fight. The problem is that the consequences of default are likely to be VERY serious. Significant economic slowdown (more than we already have), skyrocketing interest rates which will but the budget further out of balance, and some have claimed that it would impact personal borrowing, though I don't buy that one. So what we have here is a multi-party game of chicken. All responsible people agree the debt ceiling will and should be raised, but by how much, and what spending concessions or tax concessions should be part of the deal? Mr. ABM wants a clean debt-ceiling with no conditions, but if there are conditions he wants tax increases with as little spending decreases as possible. The GOP establishment wants spending decreases, but is willing to compromise on some tax increases with the debt ceiling increase. The Tea Par tiers insist on no tax increases, and most disturbingly claims that there is no problem with default. They are horribly wrong on that.
What Is The Debt Ceiling Deadline And The Default?
From Other - Politics & Government Forum:What is the Debt Ceiling Deadline and The Default?
Answer: Walrus don't know
What Is The Debt Ceiling Debate?
From Other - News & Events Forum:What is the Debt Ceiling Debate? I wanna know what this debate is about so I can use it as a reference in my debate class. And I would like to know how the following people are involved because I see their names often: John Boehner Mitch McConnell Obama Sarah Palin The Tea Party Nancy Peolosi
Answer: Just go ogle it. You'll get better answers than here.
What Is The Debt Ceiling/Deadline?
From Other - Politics & Government Forum:What is the debt ceiling/deadline? Whats the debt ceiling and deadline that's happening in 2 days?
Answer: A fictional deadline made by libs
What Is The Debt-Ceiling?
From Economics Forum:What is the debt-ceiling? I want to be able to make an educated decision in government but I don't know what this is?
Answer: It is make believe and just another way for the government to terrorize the people. You cannot run your household the way the government runs theirs.
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