by Greg Hunter, USAWatchdog:
The Democrats think they won the debt ceiling debate, but they did not–at least not in the long run. Nobody won when you consider the fact the U.S. needed to borrow or print more money just to pay its bills.
We are running a trillion dollar a year shortfall. Yes, I know the government said the latest shortfall was only $700 billion, but that is a one off accounting trick. The sad fact is we are spending about $1 trillion more than we take in every year. This gap cannot and will not go on. That is the real problem, and Washington is not going to fix this because it will be far too painful. Cuts will be needed, and there will need to be a few tax increases too. We know that is not going to happen. What is going to happen is the dollar is going to come under attack, and that is what happened yesterday. When the dollar loses value, we pay more for just about everything. On the other hand, gold jumped. The world knows we are not going to fix this debt problem. That is why China is calling for the U.S. dollar to be replaced as the reserve currency.
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