Monday, May 16, 2011

The Donald is out. The credit is maxed. What does it all mean?

Today was an interesting Monday for news. Stories came and went and most of them neither raised any major spikes in interest nor ruffled the masses. With myself, there were two particular stories of interest that came out. One is on a potential presidential candidate and the other is on credit extensions.
     The first big story of the day was the Donald Trump will not be running for President. Really? Was this a big surprise to people? Why on earth would the man with the biggest ego want a job the relied on other to make decisions? The Donald is all about making the calls and the art of the deals. How would he ever exist with congress?  The fantasy of seeing The Donald run this country was exactly that, a fantasy. He knew he would never take that job; it was more a wakeup call to the other potential candidates that the people of this country are fed up with politics as usual.

     The second story which seemed to take a back seat to the presidential candidates is the fact the US is now at its credit limit. You heard me right, maxed out at 14.3 trillion dollars. I guess if Obama goes to use his credit card it will come back declined. In all seriousness, this is not a good thing at all. A report for the treasury shows the US has about 11 weeks to extend the debt ceiling. If it does not, we are looking at defaulting on our obligations. Anyone who has missed a payment of a bill will normally get a call saying pay up or else. If the US misses a payment, the effects will ripple through the world economy and potential to see one hell of a backlash. I’m no financial expert nor to I play one on TV but I do know for the US to default is really, really, really bad. Like your loan has immediately come due and you don’t have the money bad.

     Now how does this affect us you ask? Well, our entertainment during the election has walked away. We may still have Sarah with her witty saying but the Donald and his hair was comedy gold for SNL. Weeks upon weeks of material there. The portion on maxed out is more concerning. I won’t be the doom and gloom person so you all can draw your own pictures of the future if the US can’t borrow from any other countries.

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