Failure to Act on Debt

[Tams 20]

Failure to act on debt could spell trouble for economy

 

Without action, Treasury will be forced to stop paying some big bills

 

 

By John W. Schoen

Senior producer

msnbc.com

updated 5/27/2011 7:22:56 AM ET

 

The government has maxed out its borrowing limit, and Treasury officials have warned of dire consequences if Congress and the White House can't agree soon on a plan for raising the debt ceiling.

 

Failure to act on a plan could force the Treasury to make steep spending cuts to avoid defaulting on debt payments, with potentially serious damage to the current weak economic recovery.

 

The Senate this week shot down a proposal by Rep. Paul Ryan, R-Wis., to cut $6 trillion in federal spending over the next 10 years. That put Congress back on square one as lawmakers look for a compromise that would allow the government to continue operating without some kind of automated cuts to stay under the spending cap.

 

...

 

full story here

http://www.msnbc.msn.com/id/43113076/ns/business-eye_on_the_economy/

[Tradewinds 12]

The clock is ticking. The debt can't get paid off unless tax revenues increase and spending goes down. Tax revenues can't increase unless the economy gets better. How's the economy going to get better? The economy will get better from more business and more jobs. Were are the jobs going to come from? From businesses selling goods and services to people who have jobs. But the people don't have jobs, or don't have any extra money. The business depend on the consumers and the consumers depend on the businesses for jobs. It looks like a "no win" situation.

 

What's the solution? The U.S. should import old and sick people from all over the world with enough money to pay for health care. That's the solution. The U.S. needs an economy based on old and sick people. That will ensure our economic future. Base the economy on health care. But to base the economy on health care, the U.S. needs old and sick people. Health care won't do very well when people are healthy. I'm a genius! I've figured out how to fix the economy. We need more old and sick people to help stimulate growth in the health care sector.

 

The U.S. war effort doesn't seem to be helping the economy. If wars did help the economy, then let's have world war III. That should solve all our economic problems.

 

The U.S. could try to do more manufacturing at home. Well, I guess that only works if foreign companies do manufacturing in the U.S. If a U.S. based company tries to manufacture at home, they can't figure out how to make it work. So obviously, the solution is to have all foreign owned companies doing manufacturing here in the U.S. It's just common sense.

 

Maybe the U.S. could be the "financial capital" of the world. I don't know how many jobs that will create though. Plus China is acting as the world's banker. I'm not sure if the financial sector of the U.S. is going to be able to do much.

 

The U.S. could be at the creative and intellectual forefront of technology and innovation. But as the saying goes, "Pioneers get slaughter, and settlers thrive." I'm not sure how new creative ventures are going to help unless the knowledge and manufacturing stays in the U.S.

 

Actually, I read an excellent comment somewhere that suggested that the U.S. should trade one gallon of water for one gallon of oil. Now there's an idea!

[Tams 20]

they should sell citizenship...

that's the most coveted commodity in the world,

yet they are giving it away, free. (ok, practically free)