“To even entertain the idea of this happening, of the United States of America not paying its bills, it is irresponsible, it is absurd,” Obama said, repeating his demand for a debt limit rise.
“We are not a deadbeat nation,” the president said in his final press conference of his first White House term.
Source: News.com.au | Obama Warns Of Crisis Unless Debt Ceiling Is Raised
Every year or so, for the next 30 years, the US will raise the debt ceiling. You can be sure of that.
There is no escape: there is no way they can get into surplus without such severe cuts that it turns huge sections (~16% is already in poverty — record amount, and climbing) of their country into riots and turmoil. You think these recent cuts to lower the deficit were bad? That’s nothing. Try cutting to the point you don’t go further into debt for one year.
That’s really going to hurt.
Thus, Capitalism will, after all, grow toward it’s inevitable conclusion: civil war, or it’s modern alternative name: a military state. The Marxists have been right all along.
If the US does not raise the debt ceiling, besides causing a global economic downturn or collapse and heightening political tensions with nations relying on them paying, the USA’s borrowing power will diminish, which will have the same effect as described above.
Will the US capitalist system collapse completely? No, I doubt it, after all, the whole world relies on them at least functioning as a socialist system and well, Americans are a resourceful people.
But the nation will be critically wounded for a long time, while across the ocean, China‘s unique blend of communism flourishes into the second half of the century as a beacon of how to carry the world. It’s no surprise that companies like Apple are frantically expanding their market there in order to sustain themselves long-term.
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