Thursday, September 26, 2013

The Countdown to the Debt Crises.

The Countdown to the Debt Crises.


On 25th of September, the conflict about the debt ceiling and the hard fight about it sounded like a countdown to the next debt crises.

Analysis shows that congress must do something about the debt ceiling by mid-October or early November, otherwise there will be a problem meeting governmental obligations. This situation would lead to one of two options. The first one is, cutting down the governmental expenditures, and/or shutting some governmental sectors except for police and health care insurance.

The second option is to cancel the greatest American project in Obama’s first presidential period “Obamacare”, and that is exactly what Republicans want.

But if wanted or not, congress must raise the debt ceiling within the next 25 days to avoid another debt crises within this month but that may work at a certain level, In 2011, when Republicans launched the nation's first-ever debt-ceiling crisis, it was painful on the U.S. economy, the U.S. political system, and global markets for months. Just having the debate – partnering the fact that a "fight" existed at all - did severe damage to the nation, even though the ceiling itself was not breached.
But still the questions are, what will happen within the next three weeks, and what will happen after these three weeks?

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