Home > Uncategorized > Does The #DebtCeiling Affect Us?

Does The #DebtCeiling Affect Us?

Debt Ceiling – The legal limit by borrowing by the federal government and came into effect in 1917.

Well there seems to be A LOT of talk about this Debt Ceiling with the major question of “How will this affect us?” To start, if the Debt Ceiling is not raised by August 2nd (August 10th the latest), the government will not have enough moolah to pay its bills. What does this mean? Well it simply means that if they cannot pay their bills they will need to go into default on U.S. Treasury Bonds and cause interest rates to rise because the investors in these bonds will request higher interest rates to make up for the higher risk they are taking.

Ways this will affect us:

  1. Interest rates on credit cards will rise (so start paying them off quickly)
  2. Mortgage Rates will increase which could cause buyers to pressure sellers on reducing the price
  3. Borrowing Costs will increase (Consumer Loans, Mortgages, Personnel Loans, Car Loans, etc.)
  4. Our $$ amount will drop causing imported goods to cost more. (Stock up on gas now?)
  5. Lastly expect the stock market to drop

How do you feel about the Debt Ceiling? Should it be raised or should it not? And and what are some precautions you may take? Pay of Debt? It will be interesting to hear some feedback on this.

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  1. Sabs
    July 27, 2011 at 6:12 pm

    Get rid of whole debt ceiling. It is unnecessary since Congress passes a budget every year. Budget time is when we should be discussing these issues and not at some imaginary deadline. Its all politics and the stupid tea-baggers that want to see American burn.

  2. The Emperor
    July 27, 2011 at 6:52 pm

    It will be very interesting if the US did default, I believe that would be the begining of the end of the “American Empire”. At the begining this would affect a lot of people (look at what the recession did) around the world.Anyway, I think there is no question that the ceiling has to be raised, however I think this should be the last time they resort to that, and that they smarten up and start to actually make some effective budget cuts to reduce the dept. In all the 2012 elections will probably get a republican president (since obama could not solve it)who will either save the day, or drive the US even deeper into the hole, in which case a new country will emerge and take the US’s place as a world leader.

  3. July 27, 2011 at 9:08 pm

    Legalize and tax Pot. …. CHa Ching!

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