After months of blogging about the problems associated with
a failure to lift the debt ceiling along with a serious
program, dedicated partisan committment and careful review
of spending, I find that I am in good company. President
Obama and FED Chairman, Ben Bernanke voiced stern warnings
yesterday.
Chairman Bernanke said that in the absence of a quick
resolution to the battle over the debt limit, the United
States could lose its prized AAA credit rating while the
U.S. DOLLAR's special status as a RESERVE CURRENCY MIGHT
BE DAMAGED.
Chairman Bernanke told the Committee for a Responsible
Federal Budget that "even a short suspension of payment
of principal or interest on the Treasury's debt obligations
could cause SEVERE DISRUPTIONS in financial markets and the
payments system.
The Treasury Department has warned the the government will
begin defaulting on its obligations - both debt payments
and upcoming bills - if Congress does not increase the
limit by Aug. 2.
President Obama said that we could have a REPRISE of A
FINANCIAL CRISIS if we play this too close to the line.
What is going on with the National Debt draws a strong
comparsion to what is going on in many households today.
It underscores that urgent need for FINANCIAL CONTROL,
FINANCIAL REFORM AND FINANCIAL LITERACY.
