August 2nd 2011 just became a significant day in U.S. history. The day that the U.S. Congress and the President decided to make a hard deadline for coming to an agreement on a spending bill.
Unfortunately I fear that this will be more business as usual in Washington.
We failed to see any type of balanced budget amendment. However, it seems good that any increases in the debt ceiling are now linked to similar spending cuts.
The problem is that they created a significant loophole for the President to increase the debt ceiling without Congress approval if they fail to come to a compromise on a budget by the end of next year.
As I said before in Will The U.S. Ever Pay Off Its Debt, I fear that the U.S. will keep increasing the size of their debt hoping that inflation will help to mitigate some of the downside of that debt.
And we will all be poorer because of it. Especially the poor and middle class, but nearly everyone will suffer from it in the future.
Here’s to hoping we get our strategic finances figured out, and position ourselves for a better future…