Scribd
Upload
46 views1 page

Us Debt Crisis

The U.S. government hit its debt ceiling on May 16th and will hit $14.3 trillion by August 2nd if no changes are made, which could lead to credit downgrades and higher interest rates on bonds. This could snowball into both a financial and political crisis as Obama's attempts to woo Republicans have failed. The ever-increasing federal deficit is causing debt limits to be exhausted, so the U.S. must address this issue long-term to maintain its economic superpower status.

Uploaded by

kravs85
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
46 views1 page

Us Debt Crisis

The U.S. government hit its debt ceiling on May 16th and will hit $14.3 trillion by August 2nd if no changes are made, which could lead to credit downgrades and higher interest rates on bonds. This could snowball into both a financial and political crisis as Obama's attempts to woo Republicans have failed. The ever-increasing federal deficit is causing debt limits to be exhausted, so the U.S. must address this issue long-term to maintain its economic superpower status.

Uploaded by

kravs85
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

The U.S. government hit the debt ceiling on May 16 and by August 2, it will hit $14.

3-trillion statutory debt limit if no changes are done.Already S&P and Moodys have put US of A on the negative watchlist ,a downgrade of U.S. credit would mean interest rates on U.S. bonds would go up. The ramifications of this across global markets are unimaginable because U.S. bonds are considered the world's safe haven investment. Obamas last mile attempt to woo the Republicans have fallen on the nose and this financial crisis is snowballing into a Political as well as economic crisis. The issue of ever increasing federal deficit attributes to the debt limits getting exhausted. US government need to address this issue in long term to maintain its position of economic superpower in the world. Obamas attempts to rework the complex tax code and close loopholes in it , might bring in $1.2 trillion in revenues. But the challenges and outcomes of such a measure is open for debate. The opposition is inclined on introducing spending cuts and reforms .

You might also like