Major Concerns for US Debt

Many people in the US are worried for the future of its economy as debt continues to rise. Concerns that the world’s largest economy could fail to pay its bill for the first time in US history.

On August 15, the financial agency stated that the US is due to make $25 million in payments on more than $1 trillion worth of securities. If the US is unable to make the payments the Treasury will find it difficult to regain its AAA status.

Unfortunately, there is no alternative for rising debt. White House press secretary Jay Carney expressed that it is not about additional spending, there are obligations made by the US government.

People are highly concerned about the warnings and of course do not want the debt to continue. A recent poll has found that more than 20% of Americans have faith in “neither” party, and there are more voters who are now siding with congressional Republicans than with President Obama.

Debt and over spending is causing a lot of issues for the US. Senior Federal Reserve Policymaker Charles Plosser told a London audience on Wednesday: “The drama being played out in Congress over debt and spending has provided yet another source of uncertainty for the economy”