The House of Representatives, led by Speaker of the House John Boehner and other Republicans, is set to vote on a plan to raise the United State’s debt ceiling today. The plan also calls for sweeping cuts of government spending.
Proponents of the plan contend this may be the legislature’s last chance to stave off an economic disaster for the debt burdened U.S. Democrats, however, argue that passing the bill in the House is no guarantee that it will be accepted in the Senate.
“There are things that either side cannot get,” said Senate Majority Leader Harry Reid. He also declared that Republicans need to “accept that and move on.” Other Senators had harsher terms for Boehner’s plan. Senator Chuck Schumer, a New York Senator, said that Boehner’s plan was “a futile gesture.” In fact, Reid said that if the House does approve the plan then the Senate could immediately vote to defeat it.
This unwillingness by Senate Democrats to comprise has frustrated many Republicans in both the Senate and the House. Senate Minority Leader Mitch McConnell, R-Kentucky concluded, “Democrats are playing with fire here, and it’s hard to conclude that they’re doing it for any other reason than politics,” McConnell said.
Democrats are not the only ones balking at the Boehner plan. Tea Party conservatives have also had complaints about the bill arguing that it does little to lower government spending or shrink the size of the current U.S. Government and the unsustainable entitlement programs such as Medicare and Social Security.
One of those opposed to the plan is Rep. Phil Gingrey, R-Georgia. He told CNN on Thursday morning he does not support the plan. “I love my speaker (but) we just keep spending.” Gingrey is convinced that the only way the government may be able to “constrain themselves” is by passing a balanced budget amendment.
What happens if the Congress fails to raise the debt ceiling by August 2? No one knows for sure, but economists predict that the U.S. could face severe rising interest rates and a substantial slide in the value of the U.S. dollar. Another real threat is the downgrade of America’s triple-A credit rating. If this happens all types of borrowing could become more expensive, and the United States stock market would very likely take a nose dive.
Whether the Federal Government would be able to pay Social Security or some of the most important obligations if the debt limit is not raised is still in question. President Barack Obama recently indicated he can’t guarantee Social Security checks will be mailed out on time, but other government officials argue there would be enough money to ensure Social Security payments are made.
As expected, the public is divided along partisan lines, but everyone can agree that the United States is facing unprecedented levels of unsustainable spending and failure to act now may jeopardize the future of this great country.
Filing for Bankruptcy Protection
Unlike the Federal Government that has a printing press and the ability to print more money when they run out, if you are facing a financial crisis you are looking for real solutions.
Filing bankruptcy may allow you to discharge certain qualifying debts or create a 3 to 5 year debt repayment plan to help you repay your creditors. If you decide bankruptcy is the right choice, you need to talk to a bankruptcy lawyer to find out if you can file either Chapter 7 or Chapter 13 Bankruptcy.
Filing Chapter 13 bankruptcy can stop home foreclosure, property repossession, wage garnishments, bank account levies and creditor harassment. After the filing of the bankruptcy petition is filed an automatic stay will be initiated to stop these actions.
Filing Chapter 7 Bankruptcy may allow you to liquidate your assets, repay creditors and discharge your remaining unsecured debts.
Filing bankruptcy is a very difficult decision and should not be made without understanding the financial consequences. The difficult economic environment has made it difficult for many individuals. If you need help, call us today.
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