Tuesday, July 26, 2011

The self imposed debt limit-2

The list goes on and on. We maybe in a better shape than some European countries because the U.S. Dollar thankfully is the world’s reserve currency and we have control over it and we can print in whatever amount we can to finance our debt. But the world is changing very fast and since we don’t know the implications of the U.S. default on its debt on the U.S. Currency, we are not yet prepared to see it through. The politicians are again playing politics and not addressing the real issue of how to deal with the growing debt. The first thing we should do is without delay increase the debt limit. Then we should tackle about how to get rid of this self imposed debt limit which is causing all this stress in the financial markets.

Next as I said before, we should put every expenditure and every revenue raising item on the table and then starting fighting over it. As I have been saying in my posts, nothing should be left out as the sacred cow, even if it means not get elected in the next election. The American people should be told the truth about how we are going to raise revenue and reduce spending. The four taboo expenses, Social Security, Medicare, Medicaid and Defense budgets should be scrutinized and curtailed drastically with the truth splashed out in black and white on all media outlets to see. It is just not enough to give big figures to cut and say that it will raise revenue or reduce expenses over certain years. We should know that every year, we will cut this certain amount of money.

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