Raising the US debt ceiling

[punked]

I don't think you understand how Treasury works....that was not sarcasm.

The president needs to live within budgets and limits approved by an elected Congress. It's called a debt limit for a reason.

Got it the congress plays not role. Except they do.

[bush_cheney2004]

Got it the congress plays not role. Except they do.

Congress plays not role...or knot role?

[punked]

Secretary Geitner...do your job!

“At issue is the stubborn fact that

ultimate responsibility to use available Treasury funds to honor the debt obligations of the United States falls on you as Secretary of the Treasury.

We believe it is irresponsible and harmful for you to sow the seeds of doubt in the market regarding the full faith and credit of the United States and ask that you set the record straight – that you will use all available Treasury funds necessary to prevent default while Congress addresses the looming debt crisis.”

http://demint.senate.gov/public/index.cfm?ContentRecord_id=7371d3a9-9435-4277-87ef-330fcf689087&p=PressReleases

No problem he can do it easily if the Congress refuses to rise the ceiling. The President said it today they can stop payments of SS checks and close the government down and the Treasury will pay. That isn't the issue, the issue is where do the cuts come from because the congress says the Treasury can issue no more debts or monies. That is where the blame will lay when Geitner does his job. You seem to be in your own little world.

[punked]

Congress plays not role...or knot role?

"No role" sorry mistype.

[bush_cheney2004]

No problem he can do it easily if the Congress refuses to rise the ceiling. The President said it today they can stop payments of SS checks and close the government down and the Treasury will pay. That isn't the issue, the issue is where do the cuts come from because the congress says the Treasury can issue no more debts or monies. That is where the blame will lay when Geitner does his job.

Yep...that's the constitutional starting point, not your grab-assing political games. Geitner needs to do his job instead of playing political bait for Obama.

You seem to be in your own little world.

Correct....it is called the United States of America. You....are not.

Edited July 13, 2011 by bush_cheney2004

[punked]

Yep...that's the constitutional starting point, not your grab-assing political games. Geitner needs to do his job instead of playing political bait for Obama.

Again you seem to playing a little far into this game. The Debt ceiling has till Aug 2nd to be raised then Obama and Geitner can talk about who gets be the bad guy. Right now though we are arguing about the First option before cuts come that is raising ceiling. That talk does really involve Geitner. I know you want this subject to be changed but the fact is we are talking about Republicans and Democrats agree the debt ceiling needs go up just that there needs to be agreement to do it. That is the subject, you are very good at getting me off subject but I really don't want to change the channel right now.

[bush_cheney2004]

Again you seem to playing a little far into this game. The Debt ceiling has till Aug 2nd to be raised then Obama and Geitner can talk about who gets be the bad guy. Right now though we are arguing about the First option before cuts come that is raising ceiling. That talk does really involve Geitner.

There is nothing magic about Aug 2nd...the debt ceiling can be raised after that as necessary.

I know you want this subject to be changed but the fact is we are talking about Republicans and Democrats agree the debt ceiling needs go up just that there needs to be agreement to do it. That is the subject, you are very good at getting me off subject but I really don't want to change the channel right now.

That's because you already got burned with false remarks about Nixon and Social Security. Unlike you, I am not afraid of my own country's Constitution.....let it bleed.

[bush_cheney2004]

Secretary Geitner....do your duty!

http://upload.wikimedia.org/wikipedia/commons/4/49/US10dollarbill-Series_2004A.jpg

[pinko]

It is nice to see some here acknowledge the role of the Treasury in ensuring the flow of funds post August 2, 2011. The circumstances in this case and the consequence of failure is far more dire than anytime in American history.

[bloodyminded]

It is nice to see some here acknowledge the role of the Treasury in ensuring the flow of funds post August 2, 2011. The circumstances in this case and the consequence of failure is far more dire than anytime in American history.

I dunno. The 1860's were interesting times, with far-reaching consequences no matter the outcome.

[pinko]

I dunno. The 1860's were interesting times, with far-reaching consequences no matter the outcome.

Without the technology and interrconnection on a global level as is currently the case.

Here is an article of why taxes are going to eventually rise in the USA in relation to budgeting.

http://www.nytimes.com/2011/07/13/business/economy/why-taxes-will-rise-in-the-end-david-leonhardt.html?hp

What are your thoughts on the article?

Edited July 13, 2011 by pinko

[BubberMiley]

Oh, so government jobs. That's what I thought.

You really don't have a clue, do you? Government construction work is mostly done under contract. So we don't need the roads? We certainly need educated people. Look how remedial your understanding of economics is!

How is being a leechy financial planner more of a job than laying sewer pipes?

[Oleg Bach]

That just isn't true. If I make 500 Trillion a year you will give me the 3 trillion dollar loan no problem. How you speak just isn't how credit works.

Sounds like a rich person talking who wants to keep on levering his money into more and more and more - sorry - but if I were king and YOU demanded more after squandering what I gave you to begin with - sorry - you are cut off.

[Shady]

It is nice to see some here acknowledge the role of the Treasury in ensuring the flow of funds post August 2, 2011. The circumstances in this case and the consequence of failure is far more dire than anytime in American history.

There is a flow of funds, every single day. It's called tax revenue.

[pinko]

There is a flow of funds, every single day. It's called tax revenue.

If Congress fails to increase the nation's $14.3-trillion debt ceiling, countries who hold America's debt could seriously question the US' ability to make good on its debts while economists predict the US could slip back into recession. But how will we know if financial markets think that crisis is imminent? The Washington Post's Neil Irwin breaks down five tell-tale signs. Among them:

■Discontinuities in the Treasury bill market. If the prices of bonds maturing around the Aug. 2 debt limit deadline begins to fall, that means investors are demanding higher interest rates for holding on to them. Right now, the rate for bills maturing on August 4 is .01 percent, which is the same as those maturing on August 18th or 25th. "Get nervous if that changes," Irwin writes.

■Spikes in the credit default swaps market. If the price of credit default swaps—insurance against the US government debt—begins to rise, look out. "US swaps imply only a 4.6 percent chance of a default within five years. This is the indicator that is flashing warning signs — it is up substantially since early April," says Irwin.

■A narrower spread between Treasurys and near substitutes. If US government bonds become a riskier bet, investors could look elsewhere. Like Canada, or other credit-worthy countries like Switzerland or Germany.

http://motherjones.com/mojo/2011/06/whats-happening-debt-ceiling-explained#5

[Oleg Bach]

There is a flow of funds, every single day. It's called tax revenue.

It's like a tiny funnel of money that empties into this huge disposal unit..that feeds it self first...and leaves the left overs for others - The problem polically speaking is that they are not running out of money but out of left overs. People will get real pissed off if the master does not toss a few crumbs down from his table - Once the master has run out of crumbs - the real up heavel will not be simply monitary - Violence will break out and increase and America which is semi-livable will become un-livable. That is the ultimate threat - social upheavel - The American leadership had better stop thinking about itself and their friends as far as the good life... Eventually there will be no quality of life - for the poor or the rich - action must be swift...and some must be willing to sacrafice -...at present they think they can fake it one more time - sorry - YOU can not make something out of nothing for ever.

[Black Dog]

If the U.S. defaults, does that mean China will re-posses all its stuff?

Edited July 13, 2011 by Black Dog

[Shady]

If the U.S. defaults, does that mean China will re-posses all its stuff?

They should repossess Obama's stuff first.

[punked]

Republican leader said today he has 60 members who WILL NOT VOTE to raise the ceiling under any circumstances, meaning Shady was right Nancy has all the power once again. No wait Shady says she has no say but because Republicans want SS checks to stop they NEED all her votes to pass anything.

Crazy crazy Republicans want to drive the US off a cliff and kill all jobs. Yep they got elected on Jobs and Republicans think that they got elected to kill jobs. That is how they are acting at least.

[pinko]

If the U.S. defaults, does that mean China will re-posses all its stuff?

The Chinese hold a fair amount of American debt.

Edited July 13, 2011 by pinko

[punked]

"[W]e knew shutting down the government in 1995 was not going to work for us. It helped Bill Clinton get reelected. I refuse to help Barack Obama get reelected by marching Republicans into a position where we have co-ownership of a bad economy," McConnell said. "It didn't work in 1995. What will happen is the administration will send out to 80 million Social Security recipients and to military families and they will all start attacking members of Congress. That is not a useful place to take us. And the president will have the bully pulpit to blame Republicans for all this disruption."

"If we go into default he will say Republicans are making the economy worse," he concluded. "And all of a sudden we have co-ownership of a bad economy. That is a very bad position going into an election. My first choice was to do something important for the country. But my second obligation is to my party and my conference to prevent them from being sucked into a horrible position politically that would allow the president, probably, to get reelected because we didn't handle this difficult situation correctly."

That is from the Republican leadership. Translation? "F--k the US and its economy I just don't want to lose elections."

[Shady]

If Congress fails to increase the nation's $14.3-trillion debt ceiling

I'm all for raising the debt ceiling. As long as there's real reform attached to it, that addresses the structural problems within the budget that cause the need to borrow 40 cents of every dollar. Otherwise, what's the point?

[punked]

I'm all for raising the debt ceiling. As long as there's real reform attached to it, that addresses the structural problems within the budget that cause the need to borrow 40 cents of every dollar. Otherwise, what's the point?

Obama offered a 4 trillion dollar deal and the republicans turned their back on it cause they don't want a deal.

[pinko]

I'm all for raising the debt ceiling. As long as there's real reform attached to it, that addresses the structural problems within the budget that cause the need to borrow 40 cents of every dollar. Otherwise, what's the point?

How about defining this real reform you describe with details.

Edited July 13, 2011 by pinko

[Shady]

Obama offered a 4 trillion dollar deal and the republicans turned their back on it cause they don't want a deal.

Well, we actually don't know what the deal was. But Republicans say that it included a huge tax hike. Which they couldn't agree to.

Regardless, cutting for the sake of cutting, without actually reforming the structure problems means nothing. Cause you'll just be back in the same situation in a short period of time. There needs to be real reform. Raising retirement age, means testing medicare and social security, etc. Cuts without reform don't solve problems. That's where I disagree with Repubicans and Obama. Just cutting doesn't really solve the problem.