Sunday, July 31, 2011

U.S. Debt Crisis: Foreign Bond-Holders Will Be Paid Before Soldiers Fighting in Afghanistan

Now America Warns Troops They Might Not Be Paid As Debt Stand-Off Threatens To Plunge World Economies Back Into Recession -- Daily Mail

*Soldiers told their salaries are lower priority than interest payments to foreign bond-holders
*Renewed bi-partisan talks tonight as leaders make desperate last-minute stab at compromise

American soldiers in Afghanistan have been warned they may not be paid after President Obama failed in an 11th-hour attempt to reach a settlement over the U.S. deficit.

In a crisis that has potentially devastating consequences for the world economy, the U.S. will run out of money to pay its bills next Wednesday unless squabbling Washington legislators raise the country's $14.3 trillion (£8.7tn) debt ceiling.

Troops fighting in Afghanistan have been told that the Obama administration is expected to make their salaries a lower priority than interest payments to foreign bond-holders.

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My Comment: No leadership (or budget/debt proposal) from the White House, a Senate 2 and half years behind in submitting a budget, and a Congress determined to block any attempt to raise the debt ceiling. A disaster in the making .... and it will be some young soldier in some far distant FOB with a young family back home dependent on his pay who will suffer.

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