United States Default - The Associated Press: "The government now borrows about 42 cents of every dollar it spends. Imagine that one day soon, the borrowing slams up against the current debt limit ceiling of $14.3 trillion and Congress fails to raise it. The damage would ripple across the entire economy, eventually affecting nearly every American, and rocking global markets in the process."
The article above is an excellent summary of the current state of affairs regarding the national debt of United States and the debt ceiling debate. If you have not read anything regarding this, now is the time. It may be a bit boring, but it has the potential to effect most everyone's life not only in the United States, but around the world. You may have read recently where the credit outlook for the US has changed to negative by the rating agency, Standard and Poor's. If the US defaults, the Great Depression will look like a picnic in comparison. There will indeed be a New World Order with China likely the supreme power if they can even stand. This is worth your time to review.
The long term solution is not to continue to raise the debt ceiling. As you can see from above, 42 cents on every dollar spent is obtained by issuing more debt. The United States needs to dramatically reduce its spending and raise some taxes at the same time. Democrats do not like reduced spending and Republicans do not like higher taxes, but there are not many other choices. The only other alternative is to print more money causing massive inflation for the amount that would be necessary. There is one other alternative: Default.
