For weeks I had to sit and watch reports on Washington officials in the United States try to come up with a plan to get them out of trouble. I have read online that quite a few people believe the problem started back in 90’s when government officials began to repay debt at a really fast rate which made others nervous. Having too small of a government debt is almost just as risky as having too much debt. However, even though the US debt crisis could be seen from a mile away the US government still took their sweet time trying to come up with a solution.
The real issue is that the Democrats and Republicans just did not want to play fair so to speak. If both parties would have been willing to split the differences in the taxes and cuts the issue could have been handles quickly and without starting huge US debt crisis that could crutch the US for a long time. To avoid any long term issues, the seats were supposed to come up with a way to seal the debt limit by August 2nd and it wasn’t until the wee hours of the morning that day when something was actually decided. Even with this agreement reached, for now, American’s and officials are worried that it will only cause larger debt further down the road and higher taxes on those who cannot afford them.
With A Deal Made, Is The US Debt Crisis Over?
Unfortunately countries all over the world are watching as the United States teeter totters on its Triple A credit rating. Some officials have even suggested that this damage is so severe it could turn the US down the same path as Argentina who went from the world’s richest country to just middle class. What I see the US facing now is almost a struggle between the older “baby boomers” and the younger generation in terms of benefits and long term payments (i.e. Social Security). Needless to say that even with the attempts to bring the economical future of the US back up it seems that the US debt crisis is not over and has done far more damage that I expected it to. (more…)