Congress and the President have been looking for a way to cut Government costs. If this does not happen, the United States WILL fall into another great depression. Obama's administration is proposing to raise the US debt ceiling. Under US law, an administration can only spend money if it has sufficient funds to pay for it. Tax receipts or borrowing from the US Treasury is the only ways to obtain these funds. If Congress fails to increase the debt ceiling, this would result in the administration being unable to fund all the spending which it was required to do so by prior acts of Congress. At this point, the government must cancel or delay some spending, also known as partial government shut down. Obama also stated that, if an agreement on raising the debt ceiling does not take place shortly, the US would enter sovereign default. If this happens, it would create an international crisis on financial markets or as I previously stated, a great depression.
Now to get back on topic here. The executive actions President Obama just signed on gun control are going to cost the Government $500 million, therefore, this is going to either raise the taxes of US citizens or the Government must borrow money from the US Treasury. If Congress does not raise the debt ceiling, the US Treasury will not loan the US money. So, the government is going to resort to their other option, raising the taxes of US citizens. This is something that the President was against when campaigning for his 2nd term. This is yet, another, I told you so to Obama supporters. If Congress, which is majority Republican, does not raise the debt ceiling, the President and Democrats are going to blame the Republican party saying that we should be held accountable for the US entering sovereign default. If this debt ceiling proposal is passed, it will put the US in debt further than it already is.
The following graph clearly demonstrates which party is destroying America and sending our Nation into sovereign default.
What are the consequences of not raising the US debt ceiling for the rest of the World?
If our debt limit is not raised, this will cause the Government to default on it's legal obligations. This includes not paying Social Security and Medicare benefits, military salaries, interest on our debt, etc. As of May 2011, 40% of US Government spending relied on borrowed money. Now I would like you to take a second to think about how fast and how in debt you would be if 40% of the money you spent was borrowed? You would, without a doubt, have to eventually file for bankruptcy. These effects outside the US would be likely because the United States is a major trading partner with many countries. Countries that trade with the US on "Credit" could demand repayment. If this happens, where is the money going to come from?
In conclusion, I believe our President, Barack Obama, needs to stop wasting our hard earned money on ridiculous research into the causes of gun violence. "I will direct the Centers for Disease Control (CDC) to go ahead and study the best ways to reduce it" said Mr. Obama during his gun speech. Mr. President, we know what causes gun violence... these reasons are always going to exist, no matter what precautions we take to "try" to prevent them. Violence occurs in every Nation, whether it is by gun, knife, bomb, poison, etc. This has been taking place since the beginning of time and there is no action that can take place that is going to prevent it. Yes, we can possibly lower these statistics. But, can we do it without our country becoming bankrupt? I think not! Before we focus and dedicate our time and money on trying to control violence, we need to focus on our Economy. As the saying goes, "You can't help anyone else until you help yourself."
More to come on gun control. If you agree with my views, please share my blog!
Also: Please vote on the poll "Are Americans better off now than 4 years ago"
I know this question has already been polled. But I would like input after the election.