the deficit. It is a blow to America’s prestige that most of its debt is held by Japan and China. Sooner or later and “buy American debt” might not persuade nations to do so. If this happens America will not be able to pay its bills. In my opinion America must reign in its debt and start being fiscally responsible.

The New York Times (Times) in an August 2, 2011 editorial sharply criticized Congress for passing the Budget Act. The editorial board took the position that members of Congress were hiding behind the legislation. The widely respected paper put forth some valid arguments against the legislation. Yet, the Times’ approached to solving the deficit problem echoed its long standing stance against anything that might result in some form of austerity measures. The Times record on the EZ debt crisis problem is clear; the paper has always supported economic stimulation instead of cost cutting austerity measures. Over the years that newspaper has slowly shifted its editorial stance from being balanced to supporting Democratic ideas and policies at the expense of simple logic and reasoning. If the Times managed its finances as the U.S. government managed it’s the paper would have fold years ago. The paper’s storied past would have now been only a distant memory. The time has come for America to implement politically unattractive austerity measures.

The Washington Post in an article written by Howard Schneider reported the world’s anxiety over the US going over the fiscal cliff. In his piece – “U.S. Approaches Fiscal Cliff and World Watches from Sidelines- published on November 2, 2012 Mr. Schneider reports that officials in Brazil are worried about the international effects of a shakeup of the American economy. According to the Brazilian Finance minister the potential fallout from the US falling over the fiscal cliff would move to center stage, ahead of the European Debt crisis.

Mr. Schneider further points out that the IMF, private analysts and credit-rating companies have all painted a dismal picture of the global economy if the US fails to resolve its budgetary crisis.

President Obama had to have anticipated a role reversal at the Group of 20 finance ministers that was held in Mexico. The U.S. has never been shy about bullying and lecturing other nations about getting their country’s finance house in order. In an interview with the Chinese media, Chinese  Vice Finance Minister Zhu Guangyao told reporters that “the U.S. falling into recession was bound to drag on the global economy, making it more unstable and a global recovery more difficult.” Clearly China like so many other world economic powers needs the U.S. economy to prosper in order to keep exports flowing and U.S. investment high in global markets.

Even reliable trading partners like Mexico and Canada are urging the President and Congress to come to an agreement that would prevent the automatic operation of the Budget Act. Also many British concerns are beginning to factor into their financial reports the possibility of disruption in or a substantial change in their business with U.S. companies. The Financial Times reported a few days ago that Cobham had become the second British defense company this month to issue a profit warning because of the uncertainty surrounding U.S. military spending. What is clear is that the consequences    of not reaching any compromise to avoid the fiscal cliff would be severely felt by most Americans.

In order to usher in better and more stable economic times the U.S. must drastically reduce its sovereign debt. In my opinion the goal should be to eliminate it within 10 years. The axiom that one should not spend more money then he has should be followed. With the money that would be saved on not having to finance the debt the country could repair its aging infrastructure and offer Americans a revitalized standard of living. It is clear that the country must start on this path and not postpone real debt reduction action. The Budget Act takes the country in the right direction, sooner than later. How the U.S. tackles its debt problem is an internal matter that only Americans can decide. We should not take steps in this regards solely to satisfy global interests at the expense of national interests. America must do what is best for America.

Congress and the President have already placed into law a mechanism for reducing the nation’s sovereign debt. If the politicians cannot work out an amendment to the Budget Act, then its terms should come into play and the nation simply has to move forward. It is time for American to stop preaching austerity and start practicing it.