$14.3T Debt Ceiling, $13.9T in DEBT!! What to do? Oh yea raise the debt ceiling again

Discussion in 'Economics' started by S2007S, Jan 3, 2011.

  1. S2007S


    Will they raise the debt ceiling? Did they extend the tax cuts, extend the unemployment benefits, create tax credit for first time house buyers, create trillions in stimulus, create QE1 and QE2.

    The answer is YES, they will be raising the debt ceiling again, and of course it will go unnoticed as everyone still thinks the economy and the rest of the country is doing fine. I mean the market is up everyday so who cares what the debt ceiling goes. Its only trillions!!!!!

    So nearly $14,000,000,000,000 in debt and a $14,300,000,000,000 debt ceiling so what else is there to do but raise the fucking debt ceiling once again. Keep the good news coming. This time lets hope they raise the debt ceiling to a cool $100,000,000,000,000 so we can sit back and not have to worry about this debt crisis were in for another few more years. More debt equals happy times for the economy, only way the economy grows is through debt and stimulus. HA!!

    US Debt Limit Fight Would Be 'Catastrophic': White House
    Published: Monday, 3 Jan 2011 | 3:51 AM ET
    Text Size
    By: Reuters

    A top aide to President Barack Obama warned of catastrophic consequences if Republicans follow through on threats to reject an increase in the nation's borrowing limit.

    A White House adviser warned Republicans not to fight for debt curbs.

    Republicans, who will take control of the House of Representatives this week, are demanding spending cuts to curb the $1.3 trillion budget deficit and several have said they would oppose a higher debt ceiling if Obama does not agree to a range of painful cuts.

    White House economic adviser Austan Goolsbee accused Republicans of "playing chicken" with the nation's financial credibility.

    "This is not a game. You know, the debt ceiling ... is not something to toy with," Goolsbee told the ABC News program "This Week." "If we hit the debt ceiling, that's ... essentially defaulting on our obligations, which is totally unprecedented in American history."

    "The impact on the economy would be catastrophic. I mean, that would be a worse financial economic crisis than anything we saw in 2008," he said.

    Without a vote by Congress to raise the limit on government borrowing, the Treasury Department could bump up against the current $14.3 trillion debt limit.

    Treasury has estimated the limit could be reached during the first or second quarter of this year.

    Republican Rep. Michele Bachmann of Minnesota told CBS' "Face the Nation" Republicans were not looking to shut the government down but they do want to cut spending so the debt limit does not have to be raised "continually."

    "At this point, I am not in favor of raising the debt ceiling," Bachmann said. "Congress has had a big party the last two years. They couldn't spend enough money and now they're standing back, folding their arms ... taunting us about how are you going to go ahead and solve this big spending crisis?"

    "To not raise the debt ceiling could be a default of the United States on bond and Treasury obligations," said Republican Senator Lindsey Graham of South Carolina.

    "That would be very bad for the position of the United States in the world at large," Graham said.

    "But this is an opportunity to make sure the government is changing its spending ways." Graham, speaking on NBC's "Meet the Press," said he would not vote to raise the debt ceiling unless spending is cut back to 2008 levels.

    "The last election was about change, change that really will make us something other than Greece," he said.

    Investment for Growth

    Goolsbee, chairman of the White House Council of Economic Advisers, said Obama is willing to make difficult choices on spending cuts when he unveils his budget next month but also said it was important not to "skimp" on investments like education.

    "We are going to have to make, in the medium run, a series of tough choices, and the president's not afraid to do that, and I think you will see in his budget that he's willing to," Goolsbee said.

    Obama plans to unveil his annual budget proposal in mid-February.

    After their triumphs in November congressional elections, Republicans have vowed to roll back federal spending to 2008 levels, with exceptions for the elderly, U.S. troops and veterans.

    The debt ceiling vote gives them some leverage in the budget debate but Republicans run the risk of getting blamed if the issue stirs turmoil in world markets.

    Acknowledging that risk, incoming House of Representatives speaker John Boehner has said it would be the responsibility of Congress to deal with the debt ceiling "as adults." While signaling an openness to some budget cuts, Obama has also indicated he will defend what he sees as crucial priorities and has listed education and investment in research and development among those.

    "If you're going to go skimp on important investments that we need to grow, you're making a mistake," Goolsbee said.

    He said it was important not to "conflate" the short-term deterioration in the budget picture and long-term budget challenges. Goolsbee blamed the short-run fiscal problems on the economic crisis that Obama inherited when he took office.

    "The reason the deficit is big this year is because we're coming out of the worst recession since 1929. That's the reason. The longer-run fiscal challenge facing the country is important," he said.

    The White House economist said he saw some encouraging signs in the U.S. labor market, including a recent drop in claims for unemployment insurance.

    The U.S. jobless rate, at 9.8 percent in November, was a key factor behind Democrats' mid-term election losses.
  2. There is no debt ceiling...how can there be one as whenever we hit it, we just raise it?

    Isnt it interesting though that of that 13.9 trillion in debt, 13 trillion of it was added in just the last 30 years?
  3. jem


    tough choices... ... how about cut spending?

    Every govt worker making over 40 K loses the raises they got since the 90s.

    Retirements get cut 20%.

    We set unemployment to scale down over 1000 weeks to 1000 a month max.

    We cut back on subsidies to farmers who export.
    We cut back on subsidies to farmers who are depleting the water supply.

    We cut back on military spending... and end a few wars.. like they promised.

    We cut back on homeland defense and refocus 40% of the savings on border security.

    We stop suing states over states rights issues.

    We get rid of the national education departments and spending.
    We dump all that departments involved in equal housing...(that is a non issue)

    We cut fannie and freddie
    We cut arts programs and sports programs.
  4. http://online.wsj.com/article/SB100...84.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsFifth


    Bottom line, As I Research short postions in Munis of certain States and Cities, the underlyer is basic.....Times are gona be tough so prepare. That is the message that I see in Main Stream as well as private reports I am getting from Muni Research Teams.

    The US debt ceiling is not an indicator...if anything its a waste of time to follow. State by State is the true story. The US debt ceiling will be raised for Balance of Trade reasons, for Military. However, the 50 states will be forced to do the opposit.

    US Bonds are a risky short. Muni's are not IMHO. US bonds can be maniplated as the 10 year was back in 2000 or so,when the Gov, manipulated the 10 year.

    However, the FED RESRV an Treas. are not going to be able to manipulate Muni's.
  5. We take in about $2T in taxes. Debt service is about $800B. This talk of default without raising the debt ceiling is nonsense since we have plenty of money to pay the debt.

    I say don't raise the ceiling. Let the mafia we call the us government squirm.
  6. Pekelo


    Yes, because we never spend more than that 1.2 T, right??? Seriously dude, get a grip. The US has been overspending probably since the Vietnam war, that's why it needs more money than what it can get from taxes...
  7. achilles28


    A hard debt ceiling would impose a balanced federal budget.

    Today, the deficit accounts for roughly ~12% of GDP, at 1.7 Trillion dollars.

    If the debt ceiling is not raised, the results will be catastrophic as the real stimulus to this farce of a recovery IS the deficit. Imagine a 12% contraction in GDP, over 12 months. Imagine the ripple effect through housing, mortgage brokers, insurers, bankers, investment bankers, the stock market and retail business.

    The President nor his advisers are fear mongering the issue.

    However, if Congress does not vote to raise the ceiling, I suspect Bernacke will step in and fund Government departments directly. Literally, create debt-free money and transfer it to Government accounts.

    In all likelihood, they'll raise. Just as they always have.
  8. S2007S


    I give it 101% chance they raise it within the next 90 days to around $15.5-$16 Trillion!!!

    They will not let the GDP contract, that's why the debt ceiling will be raised yet again. Simple as that, No need to worry about anything as there is always a solution to this debt crisis.
    #10     Jan 4, 2011