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Failure To Act On Debt Limit Will Make Borrowing More Expensive, Central Economist Says

Posted: Monday, May 16th, 2011 at 6:25 am
Author: KNIA/KRLS News-Shaylon Cochran

The current federal debt limit guidelines are set to expire August 2nd, and if Congress doesn’t raise that limit before then, borrowing would become very difficult. Central College Associate Economics Professor Brian Peterson believes it’s unlikely the limit won’t be raised, but says both sides haven’t recognized all the options necessary to ensure long term financial security. Peterson says letting the debt limit remain at current levels won’t force bankruptcy, but rather will force interest rates on foreign loans higher, adding to long term debt and making borrowing more expensive.