Skip to comments.U.S. Treasury, Fed planning for possible default -source
Posted on 10/09/2013 4:05:44 PM PDT by mdittmar
* Contingencies eyed if Congress fails to raise debt limit
* Treasury, Fed officials focused on default options
* Top Republican says Congress should see plans
* Officials stress failure to raise debt limit disastrous
By Tim Reid and Jonathan Spicer
WASHINGTON/NEW YORK, Oct 9 (Reuters) - U.S. Treasury and Federal Reserve officials worried about the growing possibility of a catastrophic default are crafting contingency plans to mitigate the economic fallout if Congress fails to extend America's borrowing authority, a source familiar with the plans said.
With just eight days before the Treasury Department says the U.S. will hit its $16.7 trillion borrowing limit, lawmakers and the White House remain far from a deal to extend it. Officials are examining what options might be available to calm financial markets if a U.S. debt payment is missed.
(Excerpt) Read more at reuters.com ...
The U.S. Treasury makes roughly 80 million payments a month.
There are two statements that show how good the Federal Government is at managing our money.
This is a load of bull. If the debt limit is reached, there is plenty of cash received available to make interest payments and NOT default.
The only reason a default happens is because dear leader CHOOSES to default.
So do you think a debt default is something that could actually happen and literally single-handedly cause a new Great Depression?
If Obama chooses to default and if said default does cause a Great Depression by itself, I just hope that the conservatives and their leaders can show to the public than Obama is wholly responsible for it.
Wow, Rooters, good attempt at scare-mongering!!
Obozo re raising the debt limit in 2006:
“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 US Government cannot 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. Increasing America’s debt weakens us domestically and internationally. Leadership means that, ‘the buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.”
~ Senator Barack H. Obama, March 2006
Moody’s offers different view on debt limit
Not so, Moodys says in the memo dated Oct. 7.
We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact, the memo says. The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasurys extraordinary measures to raise funds) and a default.
Seems to me that a good place to start would be to cancel the six trillion in spending that Obama forced upon us...
“So do you think a debt default is something that could actually happen and literally single-handedly cause a new Great Depression?”
Dear leader, the gop-e, and the corporate welfare queens would sure like you to think that’ll happen. Reality though is that revenues greatly exceed interest payments so there is no need to default. The question is whether dear leader CHOOSES to default.
That’s a gamble I’d take in a New York second: dear leader isn’t going to stiff his cronies in the Bankster Industrial Complex.
Upshot: failure to increase the debt ceiling equals instant balanced budget.
Call me cynical, but are they meeting to mitigate or to magnify the effect of a default?
so why are there are no hearings (or maybe there are I am unaware) to bring Treasury before Congress, grill them and ask them why they think we would default? Expose the scam and instruct Treasury on how to not default.
The only thing I was worried about is that Obama could threaten to choose to default and then try and make the American public believe the House GOP forced his hand in defaulting. I was worried because I was thinking that, given the GOP’s inability to articulate the facts to the public, something that conservative greats like Thomas Sowell have made note of an naseum, they would not be able to deal with the backlash and so would find themselves caving on Obamacare in the end anyway. And so the Republicans would not be prepared and equipped to sway the American public to their side if Obama threatened to actively choose to default.
However, it seems like at the very least Obama has outside handlers, if you will, that are not gonna let him do that. Which does help in keeping my hopes up through all of this.
Let’s say that GayMuzzie had some very plausible need to declare Martial Law:
How many here doubt that he would do it?
Or asking another way:
Let’s say there was widespread fear and disorder —is it plausible that Obama is the type that would NOT declare Martial Law..?
“A domestic security force just as big, just as well-funded as the US military..”
“If Obama chooses to default and if said default does cause a Great Depression by itself, I just hope that the conservatives and their leaders can show to the public than Obama is wholly responsible for it.”
Dear leader could CHOOSE to default. However, I’d be willing to bet that he WON’T. What dear leader hates about the debt ceiling is that if it’s crossed is not default, it’s that we get an instant balanced budget. He gets to decide who gets paid, but ultimately the amount of expenditures would have to drop dramatically.
What we have here FRiends is the debt ceiling briar patch, and we’re b’rer rabbit.
No,won’t happen,money was real then,this is all monopoly money and everyone knows it,they’ll all play along for a while longer.
“...to FUNDAMENTALLY TRANSFORM the American way of life as we know it...”
“Never let a crisis go to waste —it gives you the opportunity to do things you normally could not get done..”
“so why are there are no hearings (or maybe there are I am unaware) to bring Treasury before Congress, grill them and ask them why they think we would default?”
EXACTLY. So why do you think the HoR is not calling hearings?
Dat’s why de’ bought all dem dar bullets earlier dis year, donyacha’ know.
If there is a default it will be because Lew has already over spent the debt ceiling by so much they can not possibly keep up the spending unless the ceiling is increased to cover their tracks.
They have overdrawn the debt ceiling and are in bad trouble
In banking terms, they have overdrawn the line so bad it ill not be renewed when it becomes known