Posted on 02/24/2011 6:29:57 PM PST by george76
If it continues borrowing at its current rate, the U.S. Treasury Department would hit the legal limit on government debt on March 14...
Over the 12 months ending January 31, 2011 the Treasury borrowed a total of $1.8 trillion, or approximately $5 billion per day.
This means that if the Treasury does not reduce the amount it is borrowing or take other actions to pay the government's bills--or if Congress does not increase the debt limit within the next 19 days--the federal government will begin defaulting on its obligations.
As it approaches the limit, the Treasury can, however, also draw from the cash account it keeps at the Federal Reserve. This account, which is merely a cash operating account, must maintain a positive balance because it is illegal for the Fed to cover any overdrafts since such activity would constitute an illegal Fed loan to the Treasury.
(Excerpt) Read more at cnsnews.com ...
At Current Rate of Federal Borrowing, Government on Track to Hit Legal Limit on National Debt on March 14
Don’t raise the debt ceiling. If the GOP is serious about controlling spending, they will hold fast.
Don’t raise the limit...let the media bitch. Let them blame you...what else can they do? People will get tired of hearing it after a while.
Don’t raise the limit...let the media bitch. Let them blame you...what else can they do? People will get tired of hearing it after a while.
Imagine two bullies standing over a victim arguing as to whether to continue to kick him in the face or whether to slow down and merely punch him in the gut. Neither even contemplates stopping. Neither is willing is to accept the fact that eventually they will kill the victim.
If the debt ceiling is always raised, it isn’t really a ceiling.
Legal means nothing anymore its a free for all, all over this once great country
within the next 19 days—the federal government will begin defaulting on its obligations.
Yeah? and who exactly is going to come around and collect?
There’s a legal limit? What’s the controlling legal authority? ‘Cause I’m pretty sure they can change the rules.
China
“such activity would constitute an illegal Fed loan to the Treasury”
This sort of thing is why Kafka novels sell. What a joke! Most of the entire reason for the Fed’s existence is to get money into the Treasury. The rest of the reason is to line the pockets of Fat Cats, who in turn give some of it to the Treasury.
Since direct loans, I guess, are illegal, they play this game where the Fed drops a dollar sign sack on a table, turn their backs, and sing to themselves, “Hmmm, hmmm, hmmm, I’m not watching, la-la-la-la...” while the Treasury yoinks it.
Uh huh... break our knee caps?
quit buying our bonds
“I really don’t think people get it.”
No one will ever get it. Budgeting is a mystery. That’s why government is so big; that’s why they’ve been able to get away with it.
“China”
Can’t we just give them the Grand Canyon and the Great Plains, or something. Throw in the Rocky Mountains if that’s not enough.
“Most of the entire reason for the Fed’s existence is to get money into the Treasury. The rest of the reason is to line the pockets of Fat Cats, who in turn give some of it to the Treasury.”
Oh, I forgot the ancillary reason: to circulate legal tender, which can be counterfeited with ease, and which will be accepted as payment whenever the government wants to use it no matter how much they dilute it.
Incorrect. Or, more accurately, not necessarily so.
The government would then have to work within current revenue. It will have to make choices, just like households who can't borrow any more money -- in order to live within its income.
They will have to set priorities as to who gets paid first. That will likely be the creditors -- so default is out of the question.
Then, just like the household, they'll have to start trimming non-essential expenses.
Making those choices will be Obama's job. He could make it relatively painless. Or he could make it painful.
Given his demonstrated attitude toward America, I would suspect the latter.
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