The Facts About the Debt Ceiling

Discussion in 'Politics' started by Contumacious, Jul 20, 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. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny says ever'thin' goin' to hell inna handbasket...
    :eek:
    It looks like 1914 again
    July 18, 2011 -- This is how it must have felt in late July 1914 as Europe careened blindly into a war that would shatter its wealth and its culture and nobody knew how to stop it.
     
  3. Richard-H
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    Richard-H Gold Member

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    The article relies on the idea of the treasury issuing new securities to balance everything out.

    Apparently, you and the author do not know what it means when the debt ceiling is not raised:

    IT MEANS THAT THE TREASURY IS NOT ALLOWED TO ISSUE NEW SECURITIES!

    Dim wit!
     
  4. Political Junky
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    Political Junky Gold Member

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    "Congress consistently brings the government to the edge of default before facing its responsibility, " Reagan says. "This brinkmanship threatens the holders of government bonds and those who rely on Social Security and veterans benefits. Interest rates would skyrocket, instability would occur in financial markets, and the federal deficit would soar. The United States has a special responsibility to itself and the world to meet its obligations. It means we have a well-earned reputation for reliability and credibility – two things that set us apart from much of the world."
    Near the end of the 54-second video, an image of President Reagan is shown on the screen with the caption "That was an adult moment."

    House Democrats say they know what Ronald Reagan would do – CNN Political Ticker - CNN.com Blogs
     
  5. Contumacious
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    Contumacious Radical Freedom

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    HUH?

    I take it English comprehension is not your forte:



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

    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

    .
     
  6. Contumacious
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    Contumacious Radical Freedom

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    I see . So the only thing politicians can do about the behemoth welfare/warfare state is increase the debt ceiling to one quadrillion.

    .:eek:
     
  7. waltky
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    waltky Wise ol' monkey Supporting Member

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    Hippity-hoppity, flippity-floppity...
    :eusa_eh:
    Obama's Position Keeps Changing in Debt Talks
    Saturday, July 23, 2011 - White House shifts in unpredictable debt debate
    See also:

    Boehner: Obama Kept Moving Goalposts in Debt Talks
    Saturday, July 23, 2011 – House Speaker John Boehner, in a Friday evening news conference at the Capitol, said there are two reasons his debt-limit discussions with President Obama broke down.
     
  8. Google
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    Google Gold Member

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    How is it you always appear whenever the debt ceiling is mentioned. Again, and I have gone over this with you over and over, you seem to be under the assumption that United States federal government takes in zero revenue. That all of its revenue is derived from debt.

    Answer this is simple basic question, and if you can't everyone will know you are full of shit, how much does the United States take in revenue annually, and how much of that revenue goes to servicing the debt????????

    Put down the marijuana and focus.
     
  9. Quantum Windbag
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    Quantum Windbag Gold Member

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    Fact 0.

    August 2nd is now August 10th.

    Debt Ceiling Deadline Might Be August 10, Not August 2: Report
     
  10. Richard-H
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    Richard-H Gold Member

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    First, if the government fails to make any payments, it goes into default. Just paying the interest or part of the payments will not change that.

    Secondly, the article from the OP says:

    "Treasury Secretary Timothy Geithner could convert that interagency debt into publicly-held debt"

    That would mean selling securities - which without congress having raised the debt ceiling, would not be authorized. Besides, the intra-govermental debt is money that the treasury owes other departments - the plan per the OP article makes no sense whatsoever.

    Finally,

    Holy geez! You think that just because I play guitar means that I do drugs?

    You truly are a brain dead drone!

    :asshole:
     

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