Timothy Geithner has recently raised the alert that the United States is reaching its debt ceiling of $14.3 trillion and must act quickly in order to avoid any colossal impact leading to a decrease in investor confidence. Despite the Republican party using this danger of hitting the debt ceiling in order to lure the democrats into agreeing with their ambitious budget cuts, they are playing along a fine line of risque and pure insanity.
The effects of such a loss in foreign and domestic investment can be examined by looking back at Argentina's troubled economic history. When Juan Domingo Peron became President in 1946 after being democratically elected, he proceeded to nationalize all of the utilities and services own by foreign companies in order to cater to the superficial wants of his electorate. Much to everyone's dismay, the nationalization of these enterprises only brought pain and chronic suffering for generations to come when the administration was not able to efficiently address the needs of such a complex industry as the railroads for example. with reserves being dried up, Argentina became more and more hostile to business both domestically and abroad.
Argentina's foolhardiness has caught up with them long before the United States had such an astonishing issue with debt but this time, lets learn from history and make sure the needs for further investment are taken care of accordingly instead of passively
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