Why Debt Ceiling Comparisons Between The United States And Greece Is Inapplicable

Tim Geithner predicts that soon the United States is likely to be unable make its obligatory payments

. He goes ahead explaining that this is as a result of the several challenges most of which have already been identified. This situation is likely to force the United States government to continue making specific payments and consequently doing away with the payments it wont be able cant make. In simply terms these unfolding events are likely to default the United States as it wont be able to make good on most of its financial obligations.

As Anastasios Belesis is looking forward to a new financial year, the august 2nd deadline approaches marking the raise of debt ceiling, as a result American economists and politicians most of whom are caught at the edge of their seats are being looked upon to come up with possible long term remedies to help control issues. The chief economist at John Thomas Financial in New York, Mr. Mike Norman was the first to talk about the fuss relating to the issue of a possible credit default explaining why it may be too early to compare the United States to Greece. Considered to be a major player in this industrial sector, Mr. Norman went ahead to explain that widespread consequences of a credit default are likely to result in a number of people missing out on a list of benefits that include : social security checks, veterans benefits while for some cases unemployment insurance might also not be paid.

Mr. Norman equally emphasized that the global credit default wont make the United States an exception especially because its credit has never been second to none. Though the current situation is likely to jeopardize the United States credit rating, principal bonds and interests will equally feel the pinch as there wont be any payment on particulars especially those owned by various investors around the world. Strange enough, John Thomas Financial under the leadership of Anastasios Belesis is speculating that the government has been in the best position to prevent whatever is happening now had it only exercised a little common sense.

When asked about the comparison of the current situation facing the United States to that of Greece, Mr. Norman explained why such a comparison is virtually inapplicable especially because unlike Greece the United States not only uses its own currency but is equally in control. In simple terms he meant that the United States has several options and can take liberties most of which Greece is not entitled to. Being a sovereign, currency issuing nation, it has become a completely inapplicable analogy make comparisons or even picture America following suit after Greece. Fact remains that the United States is not defaulting due to lack of money but as a result of political pressure.

by: James Peterson

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