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Time running out on debt ceiling (Tick-Tock run out that clock)
cnn ^ | 11/27/2012 | By Jennifer Liberto and Jeanne Sahadi

Posted on 11/27/2012 7:17:29 PM PST by tobyhill

Congress must raise the debt ceiling before the end of February, and possibly sooner. If it doesn't, the United States risks defaulting on its payments to creditors.

That's the key takeaway from a new report released Tuesday by the Bipartisan Policy Center.

The group, an independent think tank, analyzed patterns in the Treasury Department's monthly cash flow and obligations to assess just how much time it has to continue paying the country's bills in full and on time if lawmakers don't raise the legal borrowing limit.

The debt ceiling is currently set at $16.394 trillion. By the end of last week, the debt subject to that limit had reached $16.268 trillion.

Treasury has been saying for months that it expects the country to hit the debt ceiling by the end of this year. But it says it can stave off the risk of default until sometime in early 2013 through the use of "extraordinary measures," such as temporarily using federal workers' retirement savings normally invested in government bonds.

Those extraordinary measures can provide about $197 billion of breathing room, which could cover the financing needs until sometime in February, the Bipartisan Policy Center estimates.

The United States doesn't bring in enough revenue to pay all its bills, so it borrows to make up the difference. Monthly deficits typically run between $100 billion to $125 billion.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Extended News; News/Current Events
KEYWORDS:

1 posted on 11/27/2012 7:17:37 PM PST by tobyhill
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To: tobyhill

Paying more taxes to government is like giving heroin to a heroin addict.


2 posted on 11/27/2012 7:21:24 PM PST by morphing libertarian
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To: tobyhill

“If it doesn’t, the United States risks defaulting on its payments to creditors.”

Any countries that lend money to the USA when it is bankrupt with almost $90 trillion in unfunded mandates, which is 550% of its GDP, deserve to lose its money. The USA is like the welfare class who bought houses when they had no money, and it will collapse just as the housing fiasco collapsed.


3 posted on 11/27/2012 7:22:21 PM PST by txrefugee
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To: tobyhill

The sky is the limit.


4 posted on 11/27/2012 7:25:56 PM PST by unixfox (Abolish Slavery, Repeal The 16th Amendment!)
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To: tobyhill

If the debt ceiling is not raised, the US will not have to default. The US will have to have a balanced budget.


5 posted on 11/27/2012 7:28:52 PM PST by JLS
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To: JLS

Look at this blog by this economist:

http://confoundedinterest.wordpress.com/2012/11/27/avoiding-the-fiscal-cliff-what-would-you-recommend/


6 posted on 11/27/2012 7:29:44 PM PST by whitedog57
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To: tobyhill

“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure.” - Barack Hussein Obama 2006


7 posted on 11/27/2012 7:29:44 PM PST by Proud2BeRight
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To: unixfox

in 4 years $16.394 trillion will be chump change


8 posted on 11/27/2012 7:33:27 PM PST by molson209
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To: JLS

The debt ceiling is such a laugh. Why have it if we keep raising it?


9 posted on 11/27/2012 7:39:43 PM PST by doc1019 (Abortion: Women have a choice, unborn babies don't.)
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To: tobyhill

http://www.youtube.com/watch?v=ZgMEPk6fvpg


10 posted on 11/27/2012 7:42:14 PM PST by hosepipe (This propaganda has been edited to include some fully orbed hyperbole..)
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To: tobyhill

Stop the clock. Reverse the clock.

http://www.usdebtclock.org

Socialism Is Legal Plunder - Bastiat

Pay, pensions and perks of all legislators past and present rescinded until the debt is paid off and a surplus clock starts ticking.

—That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.

Alter it.


11 posted on 11/27/2012 7:43:28 PM PST by PGalt
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To: doc1019

It is a tiresome little exercise, isn’t it? I say make the debt ceiling $100T!! That way, we won’t have to raise it again for at least 2 or 3 years.


12 posted on 11/27/2012 7:47:41 PM PST by ClearCase_guy (Global Warming is a religion, and I don't want to be taxed to pay for a faith that is not mine.)
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To: ClearCase_guy

Close. Geithner is recommending abolishing the debt limit altogether.


13 posted on 11/27/2012 7:53:42 PM PST by garbanzo (It's the end of the world as we know it and I feel fine)
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To: garbanzo
And I recommend abolishing debts altogether.

The notional derivatives debt is over $600T.

It's silly. These debts cannot be paid. You can raise taxes. You can confiscate wealth. You can inflate the currency. But you'll never pay off a $600T debt.

Solution -- Jubilee. Cancel all the debts. Tell the creditors that they played a good game, but they pushed it too far and broke the bank. Now we all owe nothing, and we start over.

Yeah -- that would really hurt and cause all kinds of trouble. And sticking with $600T debt won't hurt?

14 posted on 11/27/2012 8:00:28 PM PST by ClearCase_guy (Global Warming is a religion, and I don't want to be taxed to pay for a faith that is not mine.)
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To: tobyhill
Why on earth is the assumption always that the first thing we would not pay is our interest payments?

That's like me making less money, and deciding the first thing to go isn't cable or cell phone, it's my mortgage.
15 posted on 11/27/2012 8:27:58 PM PST by andyk (I have sworn...eternal hostility against every form of tyranny over the mind of man.)
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To: JLS

JLS~:” If the debt ceiling is not raised, the US will not have to default. The US will have to have a balanced budget.”

“You never want a crisis to go to waste...”- Rahm Emanuel

Since when has Barack submitted a balanced budget that passed any house of congress..... NEVER !!


16 posted on 11/27/2012 9:48:07 PM PST by Tilted Irish Kilt ("You can kill a free man,.. you can't enslave him." -Robert Anson Heinlein)
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To: andyk

Why on earth is the assumption always that the first thing we would not pay is our interest payments?

...or in other words, “default” on anything and everything. Yes the logic or lack of is just stunning. Just a bit of political gamesmanship by those who seem to think the economy will just keep on keeping on.


17 posted on 11/27/2012 9:58:23 PM PST by wita
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To: tobyhill

LOL! Let me see if I understand this correctly. There is a date certain after which our creditors will be told we “can’t make the payment”? Really? Being as our “creditor” is The Fed who has been printing funny papers which have been bought by the US Treasury it seems about as serious as Dad trying to get back the advance on allowance he already knows I spent taking Becky Sue to the dance. What we should be telling our creditors is something more like “pound sand”. Those debts were run up by an illegitimate impostor claiming authority he did not have. The biggest “Identity Theft” of all.


18 posted on 11/27/2012 10:49:20 PM PST by wastoute (Government cannot redistribute wealth. Government can only redistribute poverty.)
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To: morphing libertarian

Or as P. J. O’Rourke wrote: “Like giving car keys and whiskey to teen age boys.”


19 posted on 11/27/2012 11:29:14 PM PST by Positive (Nothing is sadder than to see a beautiful theory murdered by a gang of brutal facts.)
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To: tobyhill

The proper thing for Congress to do is to ignore the fiscal cliff and then refuse to raise the debt ceiling. We can confront these problems now, or deal with much worse later.

Starve the Beast.


20 posted on 11/28/2012 3:18:19 AM PST by Haiku Guy (Maybe he should have said he was hiking the Appalachian Trail)
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To: PGalt
Pay, pensions and perks of all legislators past and present rescinded until the debt is paid off and a surplus clock starts ticking.

I think this should be the FIRST thing looked at. We could probably run the government for a couple of days off this money, at least.

21 posted on 11/28/2012 3:38:47 AM PST by Big Giant Head
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To: Big Giant Head

Debt is a tool for plunderers(socialists/UNaccountable bureaucrats) to take us to TOTALITARIANISM. Witness it unfolding.


22 posted on 11/28/2012 6:07:07 AM PST by PGalt
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To: Positive

Parliament of whores


23 posted on 11/28/2012 6:11:24 AM PST by morphing libertarian
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To: Tilted Irish Kilt

It does not matter what Obama or the Dims submit. If the debt ceiling is not raised, then the government can only spend what comes in.


24 posted on 11/28/2012 8:20:10 AM PST by JLS
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To: tobyhill

Rumor has it that Turbo Tax cheat Timmy is already dipping into the federal retirement funds. Which would explain why the debt ceiling has not already hit the limit as it was expected to do some time ago.

The problem with that will be that they won’t have as much to work with when the official numbers do reach the ceiling.


25 posted on 11/28/2012 10:38:52 AM PST by Revel
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To: Positive
"Or as P. J. O’Rourke wrote: 'Like giving car keys and whiskey to teen age boys.'"

What we're seeing with bipartisan government spending is comparable to giving car keys, marijuana, methamphetamine and whiskey to a carload of adults of both sexes and randomly diverse perversions.


26 posted on 11/28/2012 1:05:37 PM PST by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: morphing libertarian
Paying more taxes to government is like giving heroin to a heroin addict.

Not quite.

If you give a heroin addict enough heroin, they'll eventually OD and then they need no more heroin.

There is no level of taxes which will make a government OD and need no more taxes.

27 posted on 11/29/2012 4:48:18 AM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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