From Money News by Dan Weil | September 2013
The unconstitutional unrestrained deficit spending by the Fed govt is behind the problem that US is facing now - the US govt shutdown. The shutdown could spark a financial crisis which would remove US from the eminent economic status it used to observe ie as Number 1 world economy. If it goes into debt default.... which could be likely. This was according to former Federal Reserve Bank Chief Alan Greenspan in his new book, "The Map and the Territory, Risk, Human Nature and the Future of Forecasting"
Behind the stand off is the uncontrolled spending of the govt. It is to reach $640 to 700 Billion at the end of the fiscal year. (I thought pump priming through deficit spending was a good idea?)
If US Congress/Senate fails to pass the new debt limit law, US would most likely lose the triple A rating its debt enjoys. It would be unable to pay the interest payments of $6 billion by Oct 31, 2013, would be in default and would have to pay higher interest rate.
