May 21, 2011 - While the end of the world did not come as Christian preacher Harold Camping predicted, there are some genuine issues of concern that could end the world as we know it.
Conservative CNN analyst Will Cain warned on Saturday that the United States’ battle over raising the debt ceiling is a losing situation no matter how it is handled, and the outcome will affect every economy on the planet.
In a Saturday interview on CNN, Cain said that if the republicans get the deep budget cuts they are demanding, the sudden contraction of the US economy would lead to a worldwide depression. If Congress does not vote to raise the US debt ceiling, America will default on her loans.
Perhaps Cain is taking a lesson from what is going on now in the UK, where a similar battle over budget deficits is going on. Bloomberg reports, “Conservatives’ Treasury spokesman, said this week a hung parliament posed risks “for our economic stability” and would lead to “a paralyzed economy.”
Sudden changes in the way the United States spends money will have a genuine effect on the daily life of millions of people. Cuts to Medicare, Social Security and other programs that directly feed the economy would take spendable cash out of circulation, causing further contraction in the fragile recovery. The domino effect would cause more job losses and could easily spiral out of control.
Politicians eager to earn points with voters need to explain the true effects of what they are proposing to the public. One does not need to be an economist to know that abruptly pulling trillions of dollars out of a massive economic system will change the world as we know it. People will feel this on a very real and dramatic way when they wake up in the morning – and every day thereafter.
