Debt Talks Come Closer to Compromise

With less than two weeks to spare before the United States government stands to default on debt obligations, it would seem that there is hope for those that support raising the debt ceiling.  President Obama and House Speaker John Boehner, a Republican, might actually be close to finding a compromise with which they can both live.

Boehner has continued to state that House Republicans are willing to compromise with the President, repeating, “The ball continues to be in the President’s court.”  Amidst all of this, it would appear that the Democrats are not as convinced as they were in 2008 that President Obama will stick to his word or his convictions.  Fearing that he will agree to immediate cuts in spending while putting off steps to increase tax revenues, something the President has long said was a necessary part to any agreement.

President Obama was quoted as saying, “We have the opportunity to do something big and meaningful.”  The support that this President once had seems to be dwindling and many see his campaign slogans of “Hope” and “Change” in a different light, many simply hope he does not change his mind anymore.

The international community is watching the situation very closely to see what will become of the American dollar against other currencies.  Experts across the world have been saying that the US dollar is in a very precarious position, and if the uncertainty of the United States’ ability to continue to pay its debts remains, many central banks will begin using a different currency to purchase goods and services.

Many have already indicated that whatever happens in the next two weeks, it is of no consequence in reality.  Either the US will default now, or if the debt ceiling is raised it will default later.  Even if the US continues to raise the debt ceiling, and prints more money, it will only serve to water down the US dollar even further causing its buying power to continue to weaken, thus robbing international investors of invested worth.