The Debt Ceiling Economic Impact Reality is Enormous
A simple fact. The average monthly US deficit is slightly over $50 bn. That is the number which will automatically have to be cut from daily expenses as the post October 17th debt ceiling is reached. To place that in context, US spends $3.5 Tn annually or $292 Bn per month on average.
A forced reduction of $50 Bn would represent a 17% expense reduction. Translate that into your business – aside from how anyone feels about the politics, the impact is catastrophic economically and would force a recession and worse in terms of social unrest.
That is the state of the fiscal cliff facing America, and countries that rely on trade with America, which is pretty much everybody.
If the current laws that govern federal taxes and spending do not change, the budget deficit will shrink this year to $642 billion, CBO estimates