THM Folks – this is an article from Rush County Tea Party written by none other than my hubster Brian. I liked this one and thought I’d share. I’m not real political – but my husband is the smartest man I have ever met – really. He’s a CFO, certified account, and graduate from IU’s Kelly School of Business. Think about it, pass it on, write your congressman.
Today, the US Senate approved a last-minute debt ceiling deal. The bill is designed to keep the United States out of default with it’s credit holders, and supposedly reduce deficits by an estimated $2.5 trillion over the next ten years.
The next Congress will be left to deal with 16 trillion in debt and elevated debt service cost and an increasing budget. It’s important to realize regardless of your political affiliation, and especially if you have children – we’re paying “bills” as a government by borrowing 42 cents on every dollar spent. We’re not just living on tomorrow’s revenue, but on my 7 year old daughter’s future.
Standard & Poor’s has previously indicated it was looking for a credible, bipartisan plan that had at least $4 trillion of debt reduction. This bill falls short of that. The House leaders had the following to say about the compromise.
“It is the beginning of a process where we are going to change a system in this town. And it also, I think, sends a signal that we can work together to try and produce results,” said House Majority Leader Eric Cantor.
“It’s hard to believe that we are putting our best foot forward with the legislation that comes before us today. I’m not happy with it, but I’m proud of some of the accomplishments contained in it,” said House Minority Leader Nancy Pelosi.
Its tough to get these two on the same side.
The downgrade will come shortly after the President signs the bill (I understand Fitch says they will not downgrade the US debt). Interest rates will rise 75 basis points over the next fiscal year. If I were a person that owned treasuries, I’d strongly consider selling them NOW, unless you plan to hold them until maturity. In addition, I would fix the rate of your mortgage NOW. Mortgage rates are most likely going up. There is a storm of consequences coming from the spending spree for all. The consequences will impact each of us in food, clothing, fuel, and housing.
The US is a beautiful disaster, being led by politics and personal emotion, not good business practices. Washington has repeatedly demonstrated that it is either unwilling or unable to control spending. It does no good to have an established system of Medicare, Social Security or even public safety if our country bankrupts itself. Countries can fall apart, step by step. Hopefully today wasn’t the start of demise but a step toward prosperity.
On a good note, the bipartisan support for the bill is encouraging. Maybe some day we can get a balanced budget. That is encouraging.
P.S. Senator Reid, just so that you are aware, and while you might not agree with a new dog in the fight, the Tea Party is here to stay. I can’t get you to listen to reason, so we’ll all do it together, normal Americans that love this country. I am not a democrat, not a republican….I am AN AMERICAN WITH A VOICE. Get used to it.