Debt Deal Reached

Global markets are on the rise in response to a deal between President Obama and congressional Republicans on the debt. The deal would cut more than $2 trillion from federal spending over a decade. However, most economists think this isn't enough and does not remove the threat that the nation's AAA credit rating could be downgraded.

Re:Could Someone Help Me Out With This?

[gmuslera]

Why on Earth are we still implementing tax cuts and deficit spending?!

Because the ones that financed the campaign of the current (and past, for many years) government said so. That's the problem with using math, ab absurdum proofs always go wrong in politics.

Can't drink yourself sober

[rcb1974]

Going further in to debt is not a good strategy to becoming debt free. A person can't drink themselves sober, and economies can't borrow themselves out of debt. The US government should have minted two $1 trillion dollar platinum coins, thus creating debt free currency, deposited that into the Federal Reserve Bank, and then wrote checks against it. Instead they're going to borrow $2 trillion from the private Federal Reserve Bank. Now the US is going to have to make interest payments on that borrowed money. The US spends 500 billion dollars a year on interest payments. If they had created the money at the mint, they wouldn't have to pay interest on it. Watch the recent Still reports to learn more about this: http://www.youtube.com/user/bstill3 [youtube.com]

Re:Then Why Are We Seeing the Same Negative Effect

[PopeRatzo]

Deficits don't matter as long as we keep getting loans.

Mr. Cheney, your breakfast is ready. Now leave the computer alone and get over to the table.

We've got your favorite today, Lucky Charms and fresh-squeezed baby's blood!