Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

10/9/2013 (11 months ago)

Catholic Online (www.catholic.org)

U.S. could lose credit rating, Congress doesn't care.

Countries around the world are growing anxious as the U.S. nudges closer to a default on its debt repayments. If the deadline passes on Oct. 17 without  agreements to pay debts to foreign countries, those nations could suffer as a result.

China and Japan are especially worried about a U.S. default as they are our largest creditors.

China and Japan are especially worried about a U.S. default as they are our largest creditors.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

10/9/2013 (11 months ago)

Published in Business & Economics

Keywords: Debt ceiling, congress, credit, impasse, Obama


LOS ANGELES, CA (Catholic Online) - The United States is about to default on its debt on Oct. 17 without an agreement from Congress which is as divided as ever over whether and how to raise the national debt ceiling. While both Republicans and Democrats want to raise the ceiling, Republicans want to tie any raise to future reductions. Democrats led by Obama are demanding a clean bill, without any agreements and a promise to negotiate afterwards.

The Republican strategy hold the feet of the Democrats to a virtual fire, but Democrats have succeeded in blaming the Republican party for the worst of the impasse and as long as the public accepts this belief, Democrats have very little incentive to negotiate.

Meanwhile, the international community, particularly China and Japan, two of the largest foreign creditors, are imploring the U.S. to reach an agreement soon and to pay their debts on time. Late payments could prove disruptive to those economies.

International ambassadors are appealing to the Obama administration to sit down and talk to Republicans to reach a deal. On Monday, Chinese Vice Finance Minister Zhu Guangyao made comments about the crisis saying that China was "naturally concerned" and that he had been in touch with U.S. representatives over the issue.

If Congress does not approve a debt ceiling increase by October 17, scheduled payments to foreign creditors will go without their influx of American cash. This could cause foreign investors and governments to be stuck without money to finance their operations forcing disruptive changes to their plans and policies. The longer the impasse runs, the worse the impact.

Of course, the United States would lose its prime AAA credit rating as part of the failure. This would increase borrowing costs for the government and make future borrowing more expensive. Future generations would pay higher interest on a larger debt.

Unfortunately, Republicans and Democrats don't care too much about future generations and interest payments. Instead, members of Congress are greatly concerned about reelection, which is only possible if they two absurd and extreme party lines, refuse to negotiate with one another, and generate massive campaign contributions from their handlers to whom they are beholden.

The considerations of the American people do not matter. The considerations of foreign people matter even less.

Discover the true meaning of Christmas!

---


Pope Francis: end world hunger through 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for September 2014
Mentally disabled:
That the mentally disabled may receive the love and help they need for a dignified life.
Service to the poor: That Christians, inspired by the Word of God, may serve the poor and suffering.



Comments


More Business & Economics

400 wealthiest Americans now worth cumulative $2.3 TRILLION Watch

Image of Facebook founder Mark Zuckerberg has finally cracked America's most wealthy top ten at tenth place.

By Catholic Online (NEWS CONSORTIUM)

The rich, indeed get richer -- America's wealthiest are worth more than ever before. The United States' top 400 billionaires are now worth a dazzling $2.3 trillion, according to the latest edition of the Forbes 400. LOS ANGELES, CA (Catholic Online) - It comes ... continue reading


Record debt coupled with slow growth point to economic crisis, Geneva Report says Watch

Image of The Geneva Report says the rapid rise of public sector debt in rich countries and private debt in emerging markets, especially China, may lead to0 fresh economic crisis.

By Catholic Online (NEWS CONSORTIUM)

Record debt and slowing economic growth suggest the global economy could be heading for another crisis, the 16th annual Geneva Report warns. Commissioned by the International Center for Monetary and Banking Studies, the report predicts interest rates across the ... continue reading


Walmart to enter banking world with low-cost checking accounts Watch

Image of Walmart has been eying financial services for some time now.

By Catholic Online (NEWS CONSORTIUM)

Walmart is making its biggest venture into the banking world after several failed attempts in the past. The nation's largest retailer is joining Green Dot, already known for its prepaid payment cards, to supply checking accounts to nearly everyone over 18 years ... continue reading


The Chinese are coming! E-commerce giant Alibaba cleans house with its initial public offering Watch

Image of Chinese e-commerce giant Alibaba has raised more than $21 billion with its IPO, with stocks priced at $68 per share, signaling a strong demand for the tech-giant.

By Catholic Online (NEWS CONSORTIUM)

The Chinese e-commerce giant Alibaba has made the largest U.S.-listed initial public offering (IPO) of all time, with stocks priced at $68 per share, signaling a strong demand. LOS ANGELES, CA (Catholic Online) - Only large investors, like hedge funds, can ... continue reading


Bottom of the Barrel - Thanks to business tax, the U.S. is Number 32 in the world Watch

Image of A competitive tax code is one that limits the taxation of businesses and investment. Since capital is mobile and businesses can choose where to invest, tax rates that are too high

By Catholic Online (NEWS CONSORTIUM)

A new international ranking shows that the U.S. tax burden on business is close to the worst in the industrialized world. So says the Wall Street Journal, the nation's leading journal on business. The White House and Sen. Charles Schumer (D., N.Y.) will attempt ... continue reading


Unemployment rate for black Americans at 11.4 percent, more than double the rate for whites Watch

Image of There remains a wide disparity in employment in the United States, in spite of efforts to close this broadening gap.

By Catholic Online - (NEWS CONSORTIUM)

There remains a wide disparity in employment in the United States, in spite of efforts to close this broadening gap. Figures show that while unemployment nationwide is 6.1 percent, the unemployment rate for black Americans at 11.4 percent. LOS ANGELES, CA ... continue reading


A record 92,269,000 Americans jobless for month of August Watch

Image of So - there you have it: Things are STILL tough all over.

By Catholic Online - (NEWS CONSORTIUM)

It never went away, come rain or come shine form the past hot summer months . Many Americans remain idle and without work. According to the Bureau of Labor Statistics, a record 92,269,000 Americans 16 years of age and older didn't participate in the labor force ... continue reading


We owe HOW MUCH? New report reveals U.S. government owes $6 trillion to foreign entities Watch

Image of Foreign interests, including nations and businesses, own more than $6 trillion of U.S. government debt.

By Catholic Online (NEWS CONSORTIUM)

Foreign interests now own more than $6 trillion in U.S. government debt, a recent Treasury Department report on major foreign debt holders revealed. LOS ANGELES, CA (Catholic Online) - As of the end of June 2014, foreign-held debt totaled $6,013,200,000,000 in U.S. ... continue reading


Are you ready? Economic analysts predict bear market by end of 2014 Watch

Image of Economic analysts are predicting a significant drop in the market, which may be as high as 60%.

By Catholic Online (NEWS CONSORTIUM)

Two financial experts announced on August 27 that markets may face a fall of up to 60% by the end of 2014. LOS ANGELES, CA (Catholic Online) - David Tice, the president of Tice Capital and founder of the Prudent Bear Fund, reported that a jolt to international ... continue reading


Oh really Obama? President claims economic success while population dependent on food stamps hit all time high Watch

Image of The number of Americans on food stamps has not decreased since 2011, despite claims from President Obama that the U.S. economy has recovered under his policies.

By Catholic Online (NEWS CONSORTIUM)

Democrats are facing a tough midterm election, and with less than three months to go the party is scrambling to prop up the image of the U.S. economy in the minds of disgruntled voters. LOS ANGELES, CA (Catholic Online) - Yet one of the quickest shorthand ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Job 3:1-3, 11-17, 20-23
1 In the end it was Job who broke the silence and ... Read More

Psalm, Psalms 88:2-3, 4-5, 6, 7-8
2 may my prayer reach your presence, hear my cry for ... Read More

Gospel, Luke 9:51-56
51 Now it happened that as the time drew near for him ... Read More

Saint of the Day

Saint of the Day for September 30th, 2014 Image

St. Jerome
September 30: St. Jerome, who was born Eusebius Hieronymous Sophronius, was ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter