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Understanding the Debt Ceiling: And it’s affect on you!


The United States reached its “debt ceiling” limit allowed by law the middle of May and may no longer borrow fresh money. The Treasury Department can only help with special measures up to August 2, 2011, to pay bills. If the debt limits is not increased by August 2nd, then the U.S. would be technically “bankrupt!”

The U.S. could slip into a recession that this generation would not be able to comprehend and for many will be beyond the scope of their mental capacity to understand.

The Moody’s warning shot was on the stock market and appeared to have gone unnoticed. William Larkin of Cabot Money Management called the yellow card by Moody’s for the U.S. as long overdue.

If the U.S. fails to agree before August 2nd, it will have a Tsunami effect on the economy, felt around the world and a sad day for all who live and thrive in the U.S. There would be no winners on either the Republican or Democratic side and the people will become “collateral damage” along the way.

The immediate effects will be felt by the people that rely on government assistance such as Social Security; Medicaid and Medicare would also be in jeopardy.

On August 4th, if the U.S. is not able to pay their maturing government bonds, “S&P” will downgrade the U.S. to “D” said CEO John Chambers. “D” stands for default and it is the lowest level on the scale. The consequences for the International Financial Markets would be severe.

Let’s pray that “political posturing” doesn’t cause un-due human suffering. Republicans are you listening? Democrats are you listening? Don’t allow the citizens of these United States to become “collateral damage” at the expense of politics!

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July 11, 2011 - Posted by | Business News | , , , , , , ,

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