Ripples

As the date of August 2 looms closer we seem to being seeing more of it in our surroundings from news networks to the morning paper. In an article posted on the Smirking Chimp written by Joshua Holland he discuss what could happen if the United States government fails to raise the debt ceiling by August 2. Joshua goes on to explain what would happen by of course stating that we wouldn't be able to pay any of our debts to the countries that hold them such as China but also the government would have a delay in shipping out Social Security checks and unemployment benefits as well. This is critical because being unable to ship out critical checks would cause a severe backlash at the private sector who depend on IRS refund checks for doing things such as going green. Without these checks these companies won't be even hiring they may even be laying off more people increasing the demand for unemployment benefits. What about the deficit though? If the government doesn't raise its own debt ceiling then it can't spend money that it doesn't have? Joshua Holland also discusses this he states that the debt ceiling will be raised without a doubt because it unfathomable to not pay our veterans, unemployed and elderly but on time or not he is unsure. Joshua talks about how by not raising the debt ceiling on time will result in a dramatic increase in our debt which would result from having to pay the interest on our debts and how to pay for it we would need to increase federal spending.All these factors would send our economy back into another recession with the increased unemployment there would have to also be increased unemployment benefits further increasing our debt People would also be cutting back again to save and the government would then have to issue out even more tax breaks to help families further reducing our tax revenue and increasing our deficit in the process. I fully agree with Joshua statements on what may happen to the United States if we fail to raise our debt limits. I believe that each political party needs to stop bluffing because its not doing us any good and it could lead us into a second recession or even worse a depression.

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