The enormous outlay for overcrowded US federal prisons is forcing the White House to consider clemency and entreat non-violent, low-level felons serving terms for drug-related crimes to apply for early release.
The US Treasury on Friday was forced to enact ‘emergency measures’ after spending its borrowed time and money. By month’s end, Uncle Sam’s piggy bank will be down to just $50 billion, US Treasury Secretary Jacob Lew warned Congress.
Just one day after President Barack Obama signed into law a bipartisan deal to end the government shutdown and avoid default, the US debt surged a record $328 billion, the first day the government was able to borrow money.
The US has to reach a deal on its debt ceiling to avoid a catastrophe, and this crisis has to be solved by politicians, Peter Westin, chief equity strategist at Aton Capital, tells RT. Sadly, it’s US people that get stuck in the middle, he says.
This week, the US may be forced to default on its $16.8 trillion debt if a deal to raise the ceiling is not struck. And some US legislators are acting “irrationally” enough to indeed allow it to happen, Professor Jeffrey Sommers told RT.
The popular take on the current debt ceiling stand-off is that the Tea Party wing of the Republican Party has a delusional belief that it can hit the brakes on new debt creation without bringing on an economic catastrophe.
The Republican-controlled US House of Representatives has voted to delay Obamacare by one year, raising the possibility of an Oct. 1 partial government shutdown. The vote plunges the US into fiscal crisis for the fourth time in last three years.
Another war will make a bad situation much worse for the US, Gerald Celente, publisher of Trends Journal, told RT. The US is already squandering resources fighting never-ending and unwinnable wars, and so the nation is going down economically, he added.