In all the ballyhoo in Washington over whether or not to raise the debt ceiling, much has been said about the political aspects of the decision, and little has been said about the actual financial impacts on everyday Americans.
If Congress fails to raise the debt limit by the August 2 deadline, every American family will feel the financial impact says a former director of the Congressional Budget Office.
"Interest rates will spread throughout the economy," Douglas Holtz-Eakin, who now heads the conservative think tank American Action Forum, told Fox News on Monday. "Every mortgage will be more expensive, every car loan will be more expensive, every time you go to buy something on your credit card or at a major department store, those lines of credit will be more expensive."
President Obama will continue to meet with lawmakers from both sides of the aisle this week in an effort to come to some kind of agreement on the debt ceiling before the deadline, but the talks, so far, have remained largely in a stalemate. Some Republicans have pledged not to vote for a debt ceiling increase without also enacting significant spending cuts, leaving open the possibility that Congress could allow the deadline to pass without raising the debt limit.
Holtz-Eakin says that if Congress does allow the country to default on its debt, it could signal a financial downfall.
3 comments:
What good is low interest if there are no jobs? Low interest but $1. is only worth .50cents! You congressional thieves have hiked the dept ceiling every year! To the point EVERYONE including our childrens grandchildren will be paying for it!!!!
So here is another in a long line of idiots that say we should raise the debt ceiling yet again.
If we can't operate the Government now without borrowing money to the tune of 10 billion dollars/hour. How will we do it a year and a half from now when the debt is 2 trillion more?
What kind of logic do these fools use?
NO MORE BORROWING! MAKE THE CUTS NOW!
The same idiots that are warning about not raising the debt limit were probably the same ones talking about the end of the world for Y2K. And you see where that went!
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