I think my title sums it up. The United State's government debt ceiling is almost reached. When or if it is, what are you going to do? The government won't be able to function. Those on social security benefits will not be able to eat. You'll get a credit downgrade and the cost of future borrowing will go up.
There are three basic options.
1. Tax more.
2. Spending cuts.
3. Raise the debt ceiling.
Preferably avoid three, because it is not a sustainable solution.
The Republicans are ideologically preventing number 1. It is true that the top bracket pays a lot of tax as is in the United States, but there is plenty of room to move in the middle-upper bracket. This is a sensible option, because everyone's going to have to chip in, and better to have people chip in when they'll still be able to feed and clothe themselves afterwards.
2 is necessary, but the question is what.
The Republicans want 2 and 3. The Democrats want 1 and 2. Neither is budging, to the detriment of everything. I'd say the bigger man would compromise for the sake of ordinary people, but that's not what politicians are good at.
I say 1, 2 and a temporary smidgen of 3.
Although, right now, I'm in a good spot. The USD is rapidly losing value, and many other currencies are gaining ground in its place. The NZD reached a post-float high of USD 0.87 today. I expect the AUD to actually overtake the USD soon. Everyone's importing flat screen televisions. So thanks for that. Though it's hell for exporters just as things were starting to look good in the economy. So that sucks.
What is your solution? How serious is this? Are politicians doing an adequate job? What does this mean for you?
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