Many of you might be a little confused with whats going on today with the debt ceiling negotiations, and how that could impact a number of things from our nations credit rating, to the government reopening. So, Im going to do my best to make this as short as possible and answer as many questions as I can. By midnight tonight, Congress needs to reach an agreement that is voted on and passed by both the Senate and the House, that will help the US avoid defaulting on its debt. The proposed agreement just set forth by the Senate is a raise in the debt ceiling that will add over 1 Trillion dollars to our national DEBT, over the next year. This resolution, however, is only a temporary fix, getting us to February of 2014, before we are right back in the exact same spot again. As the Senate reaches an agreement (assuming they vote and pass it), Boehner will be left with a choice: He can try again to put forward a new proposal, or accept some version of what the Senate produces -- and likely pass the measure with some Republicans and a lot of Democrats. With that possibility on the horizon, House Democrats were planning to meet Wednesday afternoon, following a Senate vote. The reason the Republicans and Democrats have been at odds over an agreement thus far, is because the Republicans do not want a raise to our debt, but would instead like to stick with the original agreement passed in the sequester from earlier this year. This agreement, however, would increase that limit by more than 98 billion dollars. That money though, even IF agreed upon, is now no where near enough, with govt spending out of control, mostly because of a lack of ANY budget produced by the Obama administration, at all. The two parties have also been in disagreement about how much funding Obamacare should actually get, since at this point, we literally cannot afford to keep it running for the next year, let alone long term. Other, smaller disagreements, have also halted negotiations. Things ranging from Democrats insisting that Obamacare be funded, no matter what, but without producing a single plan as to how that exactly should be done, to the Republicans saying that they will not even LOOK at a budget proposal for Obamacare, if it does not include a provision stating that the people of Capital Hill are NOT exempt from Obamacare, as they currently ARE, and if the budget does not coincide with the original budget passed in the sequester. Obamcare negotiations aside, the government is down to the wire with about 11 hours to reach, and PASS, an agreement on the debt ceiling. If an agreement IS reached, heres what it will mean: 1. We will avoid a default on our current debt, and POSSIBLY avoid a downgrade in our national credit rating. 2. Negotiations can then begin for reopening the govt, however, nothing will be concrete, nor happen quickly, as this is simply a temporary fix, only set to keep the govt open until JANUARY 2014, and to extend the debt ceiling, again - only - until Feburary 2014. 3. A further govt shut down (bigger than what we currently have with less than 20% of programs actually halted), is avoided, and then hopefully put in motion, a plan to reopen said programs that are currently shut down. If an agreement is NOT reached, heres what it will mean: 1. Our credit rating will likely drop, putting our economy and the dollar at the largest risk its ever been at. 2. The stock market will likely take one of the largest hits in recent history. 3. A larger govt shut down will be eminent, shutting down programs like EBT (food stamps), HUD housing, Section 8 housing, and many more, nationwide. It would also put programs like Welfare, Social Security and Disability at risk of also being cut off as well. 4. We would have the largest chance of massive civil unrest, and the threat of marshal law or a police state (as crazy as that sounds) is much, much more likely. Either way, agreement or not, all this does is prolong the inevitable. We have reached the tipping point, and there is no real undoing of this. The question is simply - do we watch it all fall apart after tonight, or a few months from now? Just do everyone a favor, and please stay informed. Thank you. -Sara
Posted on: Wed, 16 Oct 2013 17:42:41 +0000
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