Debt crisis worsens as deadline looms

The US is only getting closer to the August 2 deadline when the budget is believed to become maxed out. Today President Obama is scheduled to meet with top Senate leaders to discuss the debt, but will anything change this late in the game?

“I think that this is all show,” says Mani Capital President Raj Doshi. He recalls House Speaker John Bohener speaking out against an increase in the debt ceiling, only to urge a cut with President Obama weeks later. Rather than attempting to accomplish anything, Doshi says this is just the latest act in a showing of political theatre.

Despite the White House's warning that we could default for the first time in United States history, Doshi says spending cuts don’t look promising. When asked if they could come from the Department of Defense, Doshi says, “Absolutely not,” adding that Obama’s continual bypassing of Congress and manipulation of NATO is keeping America in five incredibly costly wars.

Doshi doubts Americans are in favor of this “reckless spending,” as he puts it, but emphasizes that even if leaders vow to cut spending down the road — like new presidential hopeful Michele Bachmann makes claims to — US citizens should be weary.

“Our leaders might talk about spending cuts in the future, but that doesn’t really mean anything,” says Doshi. “You can only make cuts to the current year’s budget. Saying that they will cut spending over five, ten, 15 years in the future doesn’t really mean anything,” he adds.

What will happen as America continues to get closer to that August 2 deadline then? Lawmakers will continue to eat ice cream in air-conditioned rooms as the economy collapsing quicker and quicker, says Doshi.