The federal budget deficit for December came in at around $80 billion. This was the 27th month in a row that our government ran a budget deficit. As it regularly does, year after year, Congress is now considering raising the “debt ceiling” — the total debt the federal government is permitted to assume.
A poll today, however, reports that 70 percent of Americans oppose raising the debt ceiling, only 18 percent approve raising it, and 12 percent are perhaps honest enough to say they don’t know. But Timothy Geithner, the U.S. Secretary of the Treasury, said this week that failure to raise the debt ceiling would lead to “catastrophic consequences” — that is, the federal government might default on paying existing debt; the government can only meet payments on existing debt by taking on more debt.
Can We Really Expect to Cut Spending?
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