StockMarketFunding on Jul 23, 2011
http://www.StockMarketFunding.com Debt Limit Ceiling Talks Fail S&P 500 Long Term Technical Analysis Possible Debt Downgrade Part 1. Republicans and Democrats continue to face off over spending cuts. New debt-limit talks: No sign of a breakthrough. One day after a partisan blowup, President Barack Obama met for less than an hour Saturday with congressional leaders in crisis talks aimed at averting a national financial default in just 10 days. Raising the Ceiling has caused great concern amoung many Americans.
Ron Paul recently said It isn't too late to return to fiscal sanity. We could start by canceling out the debt held by the Federal Reserve, which would clear $1.6 trillion under the debt ceiling. Or we could cut trillions of dollars in spending by bringing our troops home from overseas, making gradual reforms to Social Security and Medicare, and bringing the federal government back within the limits envisioned by the Constitution. Yet no one is willing to step up to the plate and make the hard decisions that are necessary. Everyone wants to kick the can down the road and believe that deficit spending can continue unabated.
Unless major changes are made today, the U.S. will default on its debt sooner or later, and it is certainly preferable that it be sooner rather than later.
If the government defaults on its debt now, the consequences undoubtedly will be painful in the short term. The loss of its AAA rating will raise the cost of issuing new debt, but this is not altogether a bad thing. Higher borrowing costs will ensure that the government cannot continue the same old spending policies. Budgets will have to be brought into balance (as the cost of servicing debt will be so expensive as to preclude future debt financing of government operations), so hopefully, in the long term, the government will return to sound financial footing.
Many people feel concerned about the Federal Reserve and how they continue to print money increasing the rate of inflation and the risks of hyperinflation. We've seen gold and silver prices continue to rise as QE2 and possible QE3 have impacted currency markets worldwide. Corporate profits have been on the rise and we're seeing lower US tax rates for multinational corporations like General Electric (GE), Google (GOOG), and Apple (AAPL). In this debt ceiling agreement is a -tax holiday- loophole which gives these multinational corporations a tax rate of 5% vs 30-40%. It was designed to create jobs but many of these employers are laying off thousands of Americans, most recently announced Cisco Sysmems (CSCO) expects to layoff 6,500. Will the US default? Will they devalue our dollar? Will gold rise to $2,000? Will we see an end to the wealfare entitlement Presidency we're seeing? Time will tell and we'll see if they do the right thing for the future of America.
Ron Paul recently said It isn't too late to return to fiscal sanity. We could start by canceling out the debt held by the Federal Reserve, which would clear $1.6 trillion under the debt ceiling. Or we could cut trillions of dollars in spending by bringing our troops home from overseas, making gradual reforms to Social Security and Medicare, and bringing the federal government back within the limits envisioned by the Constitution. Yet no one is willing to step up to the plate and make the hard decisions that are necessary. Everyone wants to kick the can down the road and believe that deficit spending can continue unabated.
Unless major changes are made today, the U.S. will default on its debt sooner or later, and it is certainly preferable that it be sooner rather than later.
If the government defaults on its debt now, the consequences undoubtedly will be painful in the short term. The loss of its AAA rating will raise the cost of issuing new debt, but this is not altogether a bad thing. Higher borrowing costs will ensure that the government cannot continue the same old spending policies. Budgets will have to be brought into balance (as the cost of servicing debt will be so expensive as to preclude future debt financing of government operations), so hopefully, in the long term, the government will return to sound financial footing.
Many people feel concerned about the Federal Reserve and how they continue to print money increasing the rate of inflation and the risks of hyperinflation. We've seen gold and silver prices continue to rise as QE2 and possible QE3 have impacted currency markets worldwide. Corporate profits have been on the rise and we're seeing lower US tax rates for multinational corporations like General Electric (GE), Google (GOOG), and Apple (AAPL). In this debt ceiling agreement is a -tax holiday- loophole which gives these multinational corporations a tax rate of 5% vs 30-40%. It was designed to create jobs but many of these employers are laying off thousands of Americans, most recently announced Cisco Sysmems (CSCO) expects to layoff 6,500. Will the US default? Will they devalue our dollar? Will gold rise to $2,000? Will we see an end to the wealfare entitlement Presidency we're seeing? Time will tell and we'll see if they do the right thing for the future of America.
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