The real problem is government spending, which has contributed to a 4 trillion dollar increase in the national debt in only three years. What good will increasing the debt limit when that debt continues to rise? Government spending needs to be drastically cut to help our country survive.
Our nation is heading toward an Aug. 2 deadline to raise the debt ceiling and avoid defaulting on our debt. If Congress doesn't act quickly, the United States will face an economic disaster that could have easily been prevented.
The U.S. owes its creditors trillions of dollars. Our government has a responsibility to pay back that debt with interest, just as any American with a credit card knows. Last week, Federal Reserve Chairman Ben Bernanke testified before the House Financial Services Committee. Chairman Bernanke's message was very clear: a default will signal to the global financial markets that the United States is not a trustworthy borrower. The Treasury Department has also stated that defaulting on our debt would result in an almost 1 percent decrease in gross domestic product, hurting job creation and having a devastating effect on the economy. To put it bluntly: we can't afford a default.
If we don't raise the debt ceiling, the world will lose confidence in the U.S., and its credit rating will almost certainly be downgraded from its current, bulletproof triple-A grade. Losing our triple-A credit rating will increase our interest payments, adding at least $100 billion in new debt service payments for the country and making it more difficult to get our fiscal house in order.
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