China warns U.S. to resolve the current political stalemate over the debt ceiling immediately. With the American government now entering its seventh day of a shutdown, China has now entered the conversation expressing their serious concerns over the fast approaching October 17th deadline to raise the debt ceiling, otherwise the United States will essentially run out of cash.
China, who since 2008 has been the single largest foreign creditor of the United States, is concerned about the U.S. defaulting on their debt thus damaging the safety of Chinese investments in the U.S. Therefore, raising the debt ceiling will allow for the approval of an extension of the national borrowing limit to pay off their current debts.
However, lets really analyze the scary reality of extending the national borrowing limit and raising the debt ceiling to better understand how the United States has found themselves in a position to be warned by the Chinese government over fiscal responsibility. An excellent example has been circulating around social media that really puts the debt ceiling into perspective:
US tax revenue: 2,170,000,000,000
Fed budget: 3,820,000,000,000
New Debt: 1,650,000,000,000
National Debt: 14,271,000,000,000
Recent budget cuts: 38,500,000,000
Remove 8 zeroes and pretend it’s a household budget.
Annual Family income: 21,700
Money the family spent: 38,200
New debt of the credit card: 16,500
Outstanding balance of the credit card: 142,710
Total budget cuts so far: 38.50
While the current October 17th deadline to raise the debt ceiling needs to be met to avoid a global financial catastrophe, the above numbers shows the current outrageous spending habits the United States government has grown accustomed to.
Republicans are definitely using extreme tactics by holding the government hostage through a forced shutdown. These tactics are not worthy of the offices they currently hold and it does not exude leadership in any way. But it has magnified a clear spending problem the U.S government has maintained and will only increase with Obamacare.
The coming weeks are still left uncertain over the resolution of the current Government shutdown and the approaching deadline to raise the debt ceiling, but it is also important to acknowledge the numbers outlined above. The numbers do not lie. The government is fiscally irresponsible, and while Republicans are using outlandish tactics, they are determined to cut spending in the U.S. government and that should not go unnoticed.
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