Anonymous
Anonymous asked in Politics & GovernmentOther - Politics & Government · 10 years ago

CAN someone please explain this to me? About America?

can you plz explain this whole debt crisis. Will your country go bankrupt or something? will americans choose to move to canada? i know obama and the government have to come with a solution by august 2nd but what will happpen after that?

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  • Annie
    Lv 7
    10 years ago
    Favorite Answer

    Ooh. Heavy question. Very complicated. Hard to explain.

    Basically, what's going on with the USA is what has already occurred in other countries like Greece. And yes, it's bankruptcy on an enormous scale. What happens after August 2nd is still in the air. It would take a class in Economics 101 to make any sense at all of this.

    I just read in the newspaper today that senior citizens all across the country may not get their pension checks - and this is making them terribly anxious, for good reason.

    I also read that the bank bailouts placed the US government at a high risk of this happening. The consequences of what would have happened if the banks had crashed has now come back to bite the US government on the butt. Never mind the global monetary problems we are seeing every day now.

    The best that we as regular, ordinary every-day people can do is to pray that the US gov't and governments all over the world will be able to at least temporarily put a patch on this until spending by all governments (city, state, country) is properly prioritized.

  • Anonymous
    10 years ago

    The most concise answer I can come up with

    We are 1 of 2 country's in the world with a debt ceiling (a limit on how much money we can borrow to pay our "bills" to keep government run programs functioning) The debt limit has been raised 60 times. It is being used as a political device right now to highlight issues that each party sees with the others approach to economics. Republicans want to cut spending, Democrats want to eliminate the bush tax-cuts on rich americans, and close tax loopholes for corporate expenses. It is debatable how relevant these issues are to raising the debt limit.

    If we do not raise the debt ceiling (which in past history was a relatively easy thing to do) we will default on our debt and be an undervalued creditor in the world market, along with not being able to maintain government programs that our citizens depend on. So yes, it would be a very bad thing to exceed our debt limit if it is not raised.

  • Anonymous
    10 years ago

    i dont know much about whats going on but i know that america owes a **** load of money soo much that if china asks for all of it they will go bankrupt u.s is more in debt than they make and with all the wars there in is not helping so basicly there screwed in another way. from my understanding is like you have a income of 4000 amonth income and you have a 10000 debt and every year it grows by 2% with that 4000 theres not much bills u can pay cause u need to live too and i think other countries are starting to ask for more of there money and u.s cant pay them unless they come up wit something like cut services atleast thats what i think

  • Anonymous
    10 years ago

    you can't just move out of country sadly... you have to have something to offer canada. Like a good job and what not they have to approve you. Or else you will be an illegal immigrant.

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  • 10 years ago

    There is a possibility of being late on making our interest payments. Not unlike paying your own bills late except on a macro scale.

  • John
    Lv 6
    10 years ago

    in a nutshell, there is a small faction in congress that are SO concerned with being "fiscally responsible" that is trying to convince their party to not let the U.S. pay it's bills

  • 10 years ago

    Yes. Three hundred and fifty seven Million Americans and forty Million illegals will be moving to Canada tomorrow. Please have extra blankets !

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