The debt ceiling deadline approaches: What are the options?

Tags: Charles Kroncke, USF, federal deficit, debt ceiling, entitlements, military spending, George Bush tax cuts

Good morning. Welcome to Radioactivity. I'm Rob Lorei. The federal government is heading toward an important deadline.

The national government’s accumulated spending is approaching the $14.3 trillion debt ceiling. Republicans are demanding huge deficit reduction concessions in return for raising it. The nation is expected to run out of money to pay its debts — on Aug. 2. Some fear that as we get closer - and as the debt ceiling is not raised - the markets will get spooked and they may plunge the country into a double-dip recession.

We’re joined now by Charles Kroncke who is an associate dean at the USF College of Business. He’s been writing about federal spending in a series of op-eds for the St. Petersburg Times that he’s co-written with William Holohan at the University of Wisconsin.