The Facts About the Debt Ceiling

Discussion in 'Politics' started by Contumacious, Jul 19, 2011.

  1. Contumacious
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    Contumacious Radical Freedom

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    The Facts About the Debt Ceiling

    Separating economic myths from economic truths

    Myth 1: If a deal is not reached by August 2, the U.S. will default on its debt.

    Fact 1: The Treasury Department can prioritize payments in order to avoid a default.

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  2. Mad Scientist
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    Mad Scientist Feels Good! Gold Supporting Member Supporting Member

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    If I can't raise my debt ceiling, Congress shouldn't be able to either.
     
  3. Contumacious
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    Contumacious Radical Freedom

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    We are being governed by a Continuing Criminal Enterprise so of course they can.

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  4. jillian
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    jillian Princess Supporting Member

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    Why is it always the people who understand nothing about a subject are the ones who profess to give you the "facts"?

    *shrug*
     
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  5. Contumacious
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    Contumacious Radical Freedom

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    Why is it always the people who understand nothing about a subject are the ones who profess to dispute the "facts"?


    Editor’s Note: Reason columnist and Mercatus Center economist Veronique de Rugy appears weekly on Bloomberg TV to separate economic fact from economic myth.

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  6. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Well, that certainly Splains You.

    The government's monthly receipts can cover interest on the debt, SS, Medicare, active military, veterans' pensions, with several billion left over for discretionary spending.

    If these are not paid, it's a political decision made by Obama.

    And, whatever happened to the Legendary & Sacred Social Security Trust Fund Lock Box?
     
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    Last edited: Jul 20, 2011
  7. Contumacious
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    Contumacious Radical Freedom

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    The Experts say that YOU are correct:


    "The Treasury Department is due to pay off $30 billion in maturing short-term debt. But we also know that the Treasury has the ability to prioritize its payments and pay that particular $30 billion out of the $172 billion it collects in tax revenue. As the Bipartisan Policy Center has calculated, after paying $30 billion in interest payments in August, Treasury could, if it ceased all other functions (see page 13 of this document), also pay for Social Security, Medicare, unemployment benefits, and payments to defense contractors. Technically speaking, there is no need to default in the absence of a debt ceiling agreement."

    Reason columnist and Mercatus Center economist Veronique de Rugy appears weekly on Bloomberg TV to separate economic fact from economic myth.

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  8. Soggy in NOLA
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    Soggy in NOLA Platinum Member

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    Shrug away Jilly... you're wrong on most every pointless point you attempt.

    The U.S will NOT default unless the U.S. decides to default. There is enough money without raising the debt ceiling to make the needed debt payments. Go educate yourself.
     
  9. Wry Catcher
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    Wry Catcher Platinum Member

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    Great, thanks for sharing. Oh, and if your wrong?
     
  10. Contumacious
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    Contumacious Radical Freedom

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    [​IMG]

    Your statement has been confirmed by the Bipartisan Policy Center.

    http://www.bipartisanpolicy.org/sites/default/files/Debt Ceiling Analysis FINAL_0.pdf

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