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We've hit the debt ceiling, folks
Posted: Mon May 16, 2011 9:59 pm
by null0010
U.S. Hits Debt Ceiling
http://tpmdc.talkingpointsmemo.com/2011 ... hp?ref=fpb
article wrote:As the Treasury department has been warning -- and as House Republican leaders have promised -- the United States hit its debt limit Monday morning. The government can no longer meet its obligations by borrowing more money. And since incoming revenues aren't sufficient to pay for the services Congress has ordered and for interest payments on existing debt, the Treasury department is taking a series of ever-more extraordinary measures to pay all of its bills.
It can get away with this, according to Secretary Timothy Geithner, until August 2. If Congress doesn't lift the debt ceiling by then, the country will default, triggering a number of severe economic consequences.
Re: We've hit the debt ceiling, folks
Posted: Mon May 16, 2011 10:15 pm
by Spidey
Good…nothing like a little reality check, to force some needed changes.
Re: We've hit the debt ceiling, folks
Posted: Mon May 16, 2011 10:24 pm
by null0010
Spidey wrote:Good…nothing like a little reality check, to force some needed changes.
What do you mean?
Re: We've hit the debt ceiling, folks
Posted: Tue May 17, 2011 9:04 am
by Lothar
It's like having your credit card denied. It's the only way to force certain types of over-spenders to cut back.
I remember arguing this would be a good thing back when Birdseye was around, maybe 6 or 7 years ago. Not that I think it's generally a good idea to run up against your credit limit, but for the US government, I think it's the only way we're going to see a reduction in spending. Aside from electing a lot of fiscal conservatives and libertarians, this is the only way to move to a smaller, more sustainable government.
Re: We've hit the debt ceiling, folks
Posted: Tue May 17, 2011 9:06 am
by Will Robinson
But they just keep raising the limit so there is no real incentive to change their spending, unless the world stops buying into the program, but really, where are they going to go with their money if not here?
Maybe some token cut here or there will come from this since the freshman repub's are in play right now but I don't see them making real change unless they are threatened at re-election time in a big sweeping fashion. Too bad this isn't happening closer to election time.
If history is the indicator they will raise the limit until we crash rather than change their ways.
Re: We've hit the debt ceiling, folks
Posted: Tue May 17, 2011 9:19 am
by Foil
Lothar wrote:It's like having your credit card denied. It's the only way to force certain types of over-spenders to cut back.
Depends on what's at stake when the card gets denied. At a restaurant? Could be a nice wake-up call. Automatic mortgage payment? That could screw up your finances for a while.
Similar here, IMO. If it forces some adjustments and Congress can get it's collective head straight, this might be a good thing. On the other hand, if Congress gets mired in endless debate and doesn't manage to address it, it could cause some huge problems.
Re: We've hit the debt ceiling, folks
Posted: Tue May 17, 2011 11:52 am
by null0010
Not raising the debt ceiling will cause the United States Government to default on its loans, which would be a Very Bad Thing. I agree that spending is out of control, but nobody seems to have to political courage and willingness to address mandatory and discretionary spending across the board while also raising taxes. Any deficit reduction plan that does not include raising taxes is not a serious attempt.
Re: We've hit the debt ceiling, folks
Posted: Tue May 17, 2011 12:30 pm
by Foil
Oh, heck no, the last thing the U.S. needs to do is default on loans.
Personally, I have no doubt they'll raise the debt ceiling again this year, if only to avoid default status. I'm referring more to my hope that it spurs some future bi-partisan work on the issue.
Re: We've hit the debt ceiling, folks
Posted: Tue May 17, 2011 2:55 pm
by woodchip
They will keep raising the debt ceiling until the Chinese stop loaning us money. When no one is willing to loan us money then the ★■◆● will really hit the fan.
Re: We've hit the debt ceiling, folks
Posted: Tue May 17, 2011 3:41 pm
by Top Gun
In the meantime, though, the insinuation that we just shouldn't raise the debt ceiling this time is rather absurd. Sure, Congress, I'll bet you can get a comprehensive debt reduction plan passed in two months. No problem-o.
Re: We've hit the debt ceiling, folks
Posted: Tue May 17, 2011 4:57 pm
by flip
America is becoming the crack addict of the world union
. Or whore, which ever suits your views
Re: We've hit the debt ceiling, folks
Posted: Wed May 18, 2011 3:03 pm
by Kilarin
The problem is, if the government just keeps raising the debt ceiling in order to avoid defaulting on the loans, then what will EVER stop them from spending?
Re: We've hit the debt ceiling, folks
Posted: Wed May 18, 2011 8:36 pm
by Top Gun
A broad-based, comprehensive reform of both spending and tax policies, which will take more than a month or two to achieve. Not that I have a whole lot of hope in the current Congress to pull something off like that, but it's a hell of a lot better than intentionally royally screwing ourselves.
But hey, ever think that you could solve the problem yourself?
Here's your chance!
Re: We've hit the debt ceiling, folks
Posted: Wed May 18, 2011 9:27 pm
by null0010
Top Gun wrote:But hey, ever think that you could solve the problem yourself?
Here's your chance!
That's actually quite a cool interactive thingamabob. Here's
my solution.
Re: We've hit the debt ceiling, folks
Posted: Sat May 21, 2011 10:25 am
by null0010
Here is a fun little video explaining why the debt ceiling needs to be raised.
Re: We've hit the debt ceiling, folks
Posted: Sat May 21, 2011 11:02 am
by Lothar
So what he's saying is, basically, "we have to raise the debt ceiling because we're spending too much"... and this is a convincing argument why?
Re: We've hit the debt ceiling, folks
Posted: Sat May 21, 2011 11:20 am
by fliptw
Its a convincing argument to congresscritters.
Re: We've hit the debt ceiling, folks
Posted: Sat May 21, 2011 11:29 am
by null0010
Lothar wrote:So what he's saying is, basically, "we have to raise the debt ceiling because we're spending too much"... and this is a convincing argument why?
I never said it was convincing, I said it was fun.