US debt ceiling and its implication...
Well the problem that US is facing today is a classic case of financial mismanagement or in layman term spending more than what we earn. US have been spending way to much, way to fast. USD14.3 trillion debt is enormous and that will take probably half a century to repay that amount for an economy the size of US.
Between Boehner vs Reid's plans, I would personally prefer the latter, no doubt about that.
However the US congress have to realize that no matter which route they choose, spending cuts and tax increase is imminent. Austerity measures must be taken if US is really serious of preventing the debt problem from spiraling out of control. Simple concept of life, when overspent, you cut and rebudget future spending. No one can continue to borrow and life luxurious life forever especially in this case, we're talking about hundreds of millions of Americans future, the future of their children.
US politicians should understand the repercusion and not keep pushing this to the 11th hour. While it was claimed that there is a Plan B being put up as we speak, it should not contain anything unexpected beyond what was mentioned above, that is spending cuts + tax increase. The tax increase may not have to be a blanket measures but expect it to be implemented on selective groups -mainly the rich.
The whole world is watching and we all know US will not let the country default its payment and neither would Obama go down as the 1st US president that leads the country to a default.
2nd, we know the problem and we know what must be done for the good of the nation.
Politicians should sit down objectively and put their difference behind and work out a viable plan. There will be no winner or loser in this case, whichever plan gets implemented the American people will be the ones absorbing the impact.
Bear in mind that the longer they delay the resolution to the deadlock, the bigger the repercusion. Reputation is at stake here. Credit ratings is almost guaranteed to be downgraded from AAA. Bottomline, the delay is uncalled for.
A lesson to be learn for countries around the world... as my parents used to say... richness can only be sustained with prudent spending, continuous savings and educated investment. No one can deny that.
Between Boehner vs Reid's plans, I would personally prefer the latter, no doubt about that.
However the US congress have to realize that no matter which route they choose, spending cuts and tax increase is imminent. Austerity measures must be taken if US is really serious of preventing the debt problem from spiraling out of control. Simple concept of life, when overspent, you cut and rebudget future spending. No one can continue to borrow and life luxurious life forever especially in this case, we're talking about hundreds of millions of Americans future, the future of their children.
US politicians should understand the repercusion and not keep pushing this to the 11th hour. While it was claimed that there is a Plan B being put up as we speak, it should not contain anything unexpected beyond what was mentioned above, that is spending cuts + tax increase. The tax increase may not have to be a blanket measures but expect it to be implemented on selective groups -mainly the rich.
The whole world is watching and we all know US will not let the country default its payment and neither would Obama go down as the 1st US president that leads the country to a default.
2nd, we know the problem and we know what must be done for the good of the nation.
Politicians should sit down objectively and put their difference behind and work out a viable plan. There will be no winner or loser in this case, whichever plan gets implemented the American people will be the ones absorbing the impact.
Bear in mind that the longer they delay the resolution to the deadlock, the bigger the repercusion. Reputation is at stake here. Credit ratings is almost guaranteed to be downgraded from AAA. Bottomline, the delay is uncalled for.
A lesson to be learn for countries around the world... as my parents used to say... richness can only be sustained with prudent spending, continuous savings and educated investment. No one can deny that.
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