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Debt Limit Looms, Still No Deal

Posted: Wednesday, July 27th, 2011 at 6:23 am
Author: KNIA/KRLS News-Shaylon Cochran

The debate about how to handle the county’s debt problems continues as the deadline for extending the debt limit nears. Recently, talk on spending cuts has centered on returning spending to levels not seen in decades. Brian Peterson, Associate Economics Professor at Central College says limiting spending to a certain percentage of GDP, which has been proposed, doesn’t take a full look at current obligations, such as overseas military activity, that were not on the books in previous eras. Congress has until August 2nd to allow the government to accrue more debt before the Treasury may not be able to pay all outstanding bills.