Reality behind of fiscal cliff

It’s common that parliament pay for further demanding on government, and also in most countries government take responsibility of writing budget which indicates

Reality behind of fiscal cliff


20 February 2013 - 8:21 am

Description

It’s common that parliament pay for further demanding on government, and also in most countries government take responsibility of writing budget which indicates how and where to spend money raised through different resources. Also government is responsible to find resources for those expenditures. Then the budget will go to the parliament in order to being approved. So government’s job is to write plans for spending, and how to provide finance to them. But in the U.S this process is vice versa, and the congress is responsible for writing budget and finding way to supply the money for the budget, president of United States just following the way that congress has dictated to him. For further request which pushed upon the president there is limitation for borrowing. If the amount of borrowing closing the limit that already stated to the president, they will warn him to stop the way he is spending. So for solving the problem they have to raise that limit for borrowing by the president. In this way they will help to keep trust to the dollar in the world and make it easier to the contractors to work with the government.

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Tags: debt limit, beyond the debt limit, paying debts by U.S president to the contractors, finding supply to budget in the U.S, debt limit and international credit of Dollar, global economy and debt limit, impact of debt limit on world economy, debt limit political tool in hands of U.S congress, writing budget in U.S, warning president reaching the debt limit, borrowing and debt limit.