Posted on 04/15/2011 11:07:33 AM PDT by NormsRevenge
CHICAGO (AP) -- Failure by Congress to raise the U.S. debt limit "could plunge the world economy back into recession," President Barack Obama declared Friday, and he acknowledged that he must compromise on spending with Republicans who control the House to avoid such a crisis.
"I think he's absolutely right that it's not going to happen without some spending cuts," the president told The Associated Press in an interview in his hometown, agreeing with House Speaker John Boehner's assessment.
Obama urged swift action, saying he doesn't want the United States to get close to a deadline that would destabilize financial markets. He said he was confident Congress ultimately would raise the limit.
(Excerpt) Read more at finance.yahoo.com ...
That might work, bread and circuses is a time honored way to keep the plebes occupied.
But since it has been adopted as the World's Reserve Currency since WW 2, the fact that they have monetized it,(By buying our own debt from ourselves with money created out of thin air, just by adding more zeros to the balance in the Treasury.)
All of which sets the very real possibility that to prevent a World economic collapse and Depression, the rest of the World will be forced to drop the Dollar as the reserve currency.
The moment this happens, the US will no longer be able to pay it's debt with printed money any longer. The dollar will no longer be used to buy Oil, trade goods or commodities. And our gas/fuel costs will triple overnight because American oil refineries and industry will have to convert dollars over to the World currency first at a loss, which means runaway inflation will take hold.
There are countless other complications that will guarantee the fall of the greatest economy the World has ever known.
“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies.” ~~ Barack Hussein 0bama, 2006
The debt limit then was $8 trillion. 0bama has now already raised it three times since elected and it is now more than $6 trillion greater than in 2006 when he made that statement!
I know all that. I have been doing a ping list on that subject since late 2008 when Bush was still president and many freepers were saying we would never have inflation or dollar devaluation. I was just asking if the political consequence of this matter, even if it means Pelosi comes back. It’s just a question. I think he finally said NO.
I proposed a method of not passing a increase without actual real cuts to the deficit or Obama gets the blame if it doesnt get signed but the other fellow wants Republicans to get all the credit for the debt limit not being passed. I think he was saying it doesnt matter or it would be popular or both.
Of course trying to find a majority of those elected who hold that same view will be very difficult. In fact here's a little math :
Boehner and Obama got together and some how with lots of fighting and BLA-BLA_BLA passed a FY11 1/2 year budget that was claimed to have $40B of cuts in it. It turns out that because of other increases in spending we only got a pathetic 1/2 (0.5) billion of deficit reduction/net cuts.
But our yearly deficit is about 1.2 trillion dollars and so not passing a limit bill at all this year is a immediate 1.2 trillion dollar cut in spending.
So the near impossible (we were told anyway) 1/2 billion in net spending cuts increased to the 1.2 trillion is an increase of cuts by X2400, or it is a 120,000%(percent) increase in cuts compared to what they agreed on a week ago. Feel free to check my math.
I fully agree with you in spirit. But the math doesn't make it likely they will do it.
We are going to need a bonafide miracle to save this country from itself in the coming 2 years.
You only have to review today's very unserious GOP budget vote to understand how right you are under the current circumstances.. but, frankly this needs to change and it will only change if folks get back to Tea Partying seriously in the next couple of months..
This still has to be be agreed to in the Senate and as this is a bad offer from our side, if they balk even a bit, then the next offer is more cuts.. honestly, this is all beside the point. It is the Debt Ceiling that is everything. This year's budget is a dead document. Next years is a pipe dream.
Somewhere between now and the screams of terror someone is going to have to grow some balls.
We are going to need a bonafide miracle to save this country from itself in the coming 2 years. four months.
Secretly, I see that myself. I have geared all my investments into PM and commodities, also some Oil stocks in N.D. I am sitting really good right now.
Ahhhhhhhhhh! If the Repubs raise taxes, the Tea Parties will crucify them. It aggravates me to no end to see that Repubs compromise - $100 Billion in cuts is now $38 billion ( and that is called into question). The Pubs should have started with $200 billion.
Questions:
Let’s say that the House decided to play hard ball with the democrat spenders, including Obama by not even bringing up the debt ceiling, in other words no vote, no increase.
It seems to me that Obama and the world would get the message - loud and clear that at least the Republicans are dead serious about reducing spending, period.
Now, as the Obama Administration spends toward the current ceiling, they would need to frantically cut spending to assure that they maintain debt under the ceiling - just like the States have to do when they just about run out of funds, just like families need to do when the checkbook in empty and the credit cards full. Would that not be fun to watch?
Also, would this plan not provide a needed “Who’s Your Daddy Now” moment (several of them, actually) for Obama?
I just don’t see any downside to not raising the ceiling. Forcing spending reductions is the only way to go until the next election.
It ain't a secret anymore. But, good for you. This is why when we started talking about houses, I said, if you have the funds, they are a good buy at the moment. And everyone when crazy, because they are thinking this is a steady state system. The CRB numbers show that an incredible wave of inflation is coming inside of 6 months.. the first of those September contracts is just now facing delivery.. over the next two months prices will start going crazy and they won't stop. If QE3 is avoided, this will be only 30% minus what producers can absorb which isn't much becauser they just absorbed QE1.
The Communists are hoping to take advantage of this and get rioting in the streets in May. They are talking about this openly because they believe that Americans are too stupid and too greedy to pull up, and we may be.
To: NormsRevenge
“Obama: Raise debt ceiling or risk global recession”
Or in other words:
“You better let me put a few more sticks of dynamite on the pile around you, or I’ll blow you sky-high”
What a brilliant analogy.
We are being lied to by everyone in the White House, Treasury Department and Fed. The BEST thing the US could do would be to freeze the debt ceiling. Then government spending would have to be slashed and the world financial community would reward that event with a huge rush to buy US dollars now that they were no longer at risk of being devalued. Unless of course the Fed decided to print $1.7 billion to cover next year’s and use those dollars to pay the employees, suppliers and interest on the existing debt. Can anyone say “monetization” and “hyperinflation”?
Well, then we would know they were lying. However, THEY already know that.
Didn’t obozo tell us when he was campaigning that people who try to scare you are liars?
Wonder how long it’ll be before we’re hearing “Give me emergency powers (aka, dictatorial powers) or face global recession”.
It really is a show. All pre planned. They are gonna raise taxes and claim they had no choice. Taxes now Cuts way out there.
So in other words, if American taxpayers don’t accept crippling debt, the world will DIE.
Did I leave anything out?
Dear Mr. XXX, Thank you for contacting me about the current debt facing our nation. I appreciate hearing from you as I begin my Senate service on behalf of Pennsylvania. As you know, the debt limit is an important issue before Congress right now. The current limit, which was last raised in February 2010, is $14.3 trillion. Although $14.3 trillion sounds like an awfully big figure to most Americans, we are unfortunately approaching the limit quickly due to the record high deficits that this Administration has been running. While Congress debates an increase in the debt limit, I believe it is important to look at what got us here. As you may know, total federal spending has doubled since 2000. In addition, recent deficits have grossly exceeded those that we were running only a few years ago. In 2007, for instance, our deficit was only 1.2 percent of Gross Domestic Product (GDP). This year, it will be over 10 percent of GDP. The debt already has doubled in only four years, and it is expected to triple in 11 years. The consequences of such fiscal mismanagement will be devastating to our economy, not to mention to future generations who will be saddled with debt and a government they can no longer afford. It is clear that Washington has a serious spending problem, and the American people want Congress to make the tough choices necessary to address it. The debt limit presents a reasonable opportunity for such choices to be made. After all, one of the reasons we have a debt limit in the first place is that it forces Congress to re-examine the policies that put our country so far in the red. I therefore value your input as I continue working with my Senate colleagues on the debt limit and restoring fiscal responsibility. Thank you again for your correspondence. Please do not hesitate to contact me in the future if I can be of assistance.
Sincerely,
Pat Toomey
I certainly agree with you on that. Yesterday we got the $1/2B in net cuts that was advertized as $40B. Today we get the nonbinding long term plan resolution which doesnt save a dime, and we get to hear all the Dem complaining (postering) about it too. It's not a pretty situation. Why did the house make Boehner Speaker after the TARP bill?
I think it's every man for himself :Gold? Oil? Silver? Corn?
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