U.S. Debt: Spending Gone Wild
The US debt is out of control and some serious financial management must take place for the sake of economic sanity and American pride even though they deserve a kick in the pants for their greediness in 2008. One option is to go along with the Chinese and develop a new global currency. Way too much politics for this ever to happen. And would this help the US debt crisis? Probably not, but something drastic needs to be done. Now.
Earlier this week, the Chinese, the largest holder of US debt at nearly one trillion dollars, demanded that the Americans to make cuts to its “gigantic military expenditure” and its “bloated social welfare” programs. How dangerous is that? And in whose self-interest does this feed? The Chinese already think the American economy is in decline and are just waiting in the wings to become the next economic superpower. It is a very scary proposition to have a foreign power demand how the US should implement governmental programs. Just imagine if the Americans demanded that the Chinese open their country to democratic elections. No government wants to be in such a precarious position or dictated to.
Debt is an necessary evil of the world we live in. In the old days you paid cash for everything. Today? Try paying for your house or car with cash. Possible, but not likely for the majority of us. Or better yet try running a global military structure, social programs and giving away bail out packages to rich corporate monsters who created the 2008 economic collapse. In fact if it was a "cash only" policy for government expenditure, the fat cats would suffer and the US military might be more frugal.
Debt can become unmanageable quickly. With credit, we tend to spend beyond our means and that's the problem with the 14 trillion dollar US debt - it's spinning out of control and the S&P downgrade is more a signal that confidence in the US economy is low and needs a shake up for the good of all. Too many economies are dependent on the US. Remember, when the US sneezes everyone catches a cold. So maybe the downgrade is a good thing if it's used to bring about change.
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