The debt ceiling 2011 crisis was felt in the United States this year which concerns the national debt of the United States and immediately resulted in a month long debate at the United States congress regarding whether or not they need to increase the debt ceiling, however it resulted and deal was finalized in which they agreed upon that the debt ceiling 2011 be raised and future government spending would be reduced in the future. Now the current debt ceiling reached $16.4 trillion.
Debt ceiling or the States public debt is simply the money borrowed by the United States government. It could be borrowed through issues of securities by the Treasury or any other federal government agencies, it can be held by public compromises securities under the investors outside the foreign government whether it is held by investors in a foreign, state and local governments as well as the Federal reserve system, with the other being the intragovernment debt which is comprised by the Treasury securities which are held in accounts by the federal government. All of the federal debts have an applied modern debt limit based from the Public Debt Acts which were passed in 1939 and 1941 respectively.
The debate at the congress took regarding the debt ceiling 2011 took months before they can finally reach with an agreement on the 31st of July, 2011 after a very long deliberation between the Republicans and the Democrats. It is agreed that the national debt ceiling would be raised by $2.1 trillion because it has already reached its national debt limit of $14.3 trillion meaning that the debt ceiling 2011 would now be a high of $16.4 trillion, however the agreement did not mention that taxes would be raised. The debt ceiling default would be prevented because of this agreement made in the congress.
The United States had so many debt ceiling bills in the past administrations since its inception, all of which are approved by the congress ninety-three to be exact and this would be the third Obama debt ceiling but this debt ceiling 2011 is way too far different from the past ones as it concerns about the amount that of debt that the United States has, The United States has experienced recession from the past years which resulted in a struggling economy, of course we do not want this to end in a debt ceiling default, the credit debt would of course be paid with an interest adding more to the amount borrowed which leads to concerns and an impression that the government is losing control over its financial aspects, the country is collecting less tax revenues while it continued to spend extra on business as well as its workers.
The debate over the Obama debt ceiling had several key players involved in it each have their own voiced opinion towards the issue in the House of Representatives. The Republican side which was mostly influenced by the freshman legislators of the Tea party, they pointed out that the debt ceiling 2011 could only be raised if government spending would be cut or reduced in order to keep the ratio for spending and the government revenue to be close, to prevent the spending amount from jumping ahead of the government revenue which would mean a lot more losses to the government.
The Republican plan is simply about cutting the spending and to be able to have it passed but Speaker of the House John Boener of the Republican Party postponed the vote amid those reports that he is not getting enough support from his party mates; he needed 217 votes in order to achieve this from his 240 Republican caucus members. The debt ceiling 2011 vote did not happen and thus the Republicans changed its attention from the said issue to the re-naming of post offices.
National debt would continue to increase this year because of this debt ceiling 2011 deal, raising the debt ceiling would enable the government to borrow more money to support their spending needs; it would not be made possible if it was not approved by the United States congress, as a fact the United States government relied 40% of their spending from their borrowed money, had it not be for the debt ceiling approved government operation would be affected. The National debt clock had counted $15 trillion in American debt as of November of 2011, which states that it had doubled from 2004 which reads only $7 trillion. The debt ceiling 2011 should be able to contribute to the United States in order for it to meet its requirements for the next two years up to the year 2013.
Spending was used in projects by the government to serve its citizens better but what if the money is not enough? Of course there will be solutions to the problem but instead and you engage in a situation that you have a choice in which it has consequences from both sides. Debt.com asked readers on where they would stand regarding the issue.
Solution was made and that is to increase the amount to be borrowed but with a country that just recovered from a fiscal crisis would that help? On the other hand if the government did not borrow money it would struggle and would not be able to meet its goals and eventually would lose support to its citizens, should this be the right thing to do?
Spending would be lessened the next few years because of this consequence to be able to keep the ratio between revenue and spending equal but what if the spending flow did not change and the flow continues would spending less help? There are lot of questions regarding the consequences which could possibly the result of this ongoing financial issue in the United States government, one solution could have another effect on one aspect and vice versa. Has the government been overspending lately? What triggered this situation? Is the debt ceiling 2011 a right decision to make? Print this post
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