A February 2011 Government Accountability Office report said experts believe there is a “weakness in the U.S. budgetary framework” because Congress can approve spending without approving the borrowing necessary to fund that spending. This can cause uneasiness in the market. RESULT: MIDDLE CLASS AND POOR LOSE JOBS, BENEFITS, etc. YOU KNOW WHO’S CAUSING IT? CALL THEM AND VOTE THEM OUT.
abcnews.go.com
ABC News‘ Amy Bingham reports:
It’s 14 days and counting until financial apocalypse descends upon U.S. markets, yet lawmakers are still seemingly eons away from striking a deal to reduce the deficit and raise the debt limit. The ferocity of the debate coupled with the warnings of impending doom begs the question, why does America have a debt ceiling in the first place?
A report released Monday by Moody’s analyst Steven Hess points out that the United States’ debt limit “is an uncommon attribute not shared by most” countries. The U.S. is the only democratic country, besides Denmark, in which Congress has to approve borrowing separately from spending. In most other countries the authority to borrow money is inextricably tied to the authority to spend money.
For example, in Canada the executive branch can borrow as much money approved to spend in the yearly budget. In Sweden, borrowing is also linked to the budget, although the legislature does not decide how much money the Finance Minister can borrow but instead decides how many programs it can fund.
And in the United Kingdom and New Zealand, the Treasury department has the authority to borrow as much as they need to fund congressionally approved spending.
