The Debt Ceiling Debate Is Just One Small Obstacle
Everywhere in the media you hear people talking about the current debt ceiling being reached in Washington DC. As we all know throughout history, almost every U.S. president has raised the debt ceiling during their term. Now, President Obama and the U.S. Congress have both stated that the United States will not default on their debts. All of the politicians have made that very clear, but how is that even important? You see, the Federal Reserve can print all of the money they want. They can simply lend that money to the U.S. Treasury and the U.S. debt gets paid. According to the Federal Reserve inflation is very low so more money printing does not seem to be a problem at this time. So what is the big deal about raising the debt ceiling again?
The bigger problems that people should start to worry about are the slow economy, lack of high paying full-time jobs, welfare, war costs, and potential asset bubbles in the stock market. These are just some of the real threats to the United States. If a central bank can print all of this money to simply try and inflate the stock market to new highs with minimal economic growth something bigger can be brewing. After all, when GDP (gross domestic product) is around 2.0 percent in the U.S. that is not the sign of economic growth.
Retired citizens are earning basically nothing in a savings account at this time. So basically it is safe to say that savers are being punished for being responsible. Just think about the elderly in the United States, do they want to really invest in the stock market after experiencing the 2008 credit and housing crisis? The answer to that question is probably not. Banks are now trying to impose countless fees on individuals for having a checking and savings account. Why do people keep money in a bank anymore? The reason is so that they do not have to keep it under the mattress at their home, but that could change in the future.
Why does the government spend more money than it takes in? This is a question that could solve all of the problems for the United States. First, the country is involved in wars and conflict everywhere around the world. These are also military bases all over the Earth that must be funded and supported. Next, there are roughly 50 million people in the United States that are on some form of government assistance. The last point that we should mention is that politicians continue to spend money on projects, programs, and other pork items. This just proves that the current debt ceiling debate is just one small obstacle for the United States.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.