August 2nd is fast approaching, and as it does the pressure is on the US government to find a way to deal with their staggering debt.  However, the chances that they will are looking pretty grim, particularly because of the back-and-forth battle between president Obama and Congress, which in reality can be more clearly defined as a battle between the Democrats and the Republicans, respectively.

Resonating the demands of the Tea Party – the movement that has housed staunch republicans under a common voice demanding less government intervention – Congress believes that the best way to approach the problem is by reducing government spending; especifically which programs, they are vague about.  On the other hand, Obama insists that this approach is inefficient as it will only put a strain on society’s most vulnerable groups: students, veterans, laborers, single parents, minorities, aboriginals and the disabled!  Instead, he proposes that the best way to begin reducing the massive debt is by increasing government revenue, and to do this the tax-cuts to corporations and wealthy individuals will have to be rolled back.

Of course, you can ancitipate where the main source of this battle lies: an ideological divide.  But more importantly, talk has surfaced of the US defaulting on their debt, and I can assure you that if this happens – a possibility that is growing in probability – the status quo will dramatically change, and the world will see a new order.

The world is indeed changing, for better or for worse.  But what do you guys see happening in the near future?  And are you as certain as I am that the US will effectively stop being a superpower (if it has not already), and that with this a new World Order will emerge?

The video gives some insight into this serious issue and the possible deals that are looking to be struck.  Enjoy, and as always share your thoughts!

ARB Team
Arbitrage Magazine
Business News with BITE.

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