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 ...
Boy, ain’t that the truth. We definitely deserve a whole lot more than what this asshat has dealt us. So with O’bomba, now that he has the power, it’s pass the buck - into the hands of al Qaeda and illegal aliens, This was planned from the start - the destruction of our great nation from within and straight from the top. I hope this limp wrist commie pinko bastard rots in hell.
“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.”
OK. Let’s assume that happens. And I DON’T think it will. Dear leader defaults on the debt. We’re effectively in debt repudiation mode. At that point, the ability of the Federal government to borrow more is severely circumscribed regardless if it wants to. Net effect: lots of economic pain and an instant balanced budget.
Net effect if the debt ceiling crossed and dear leader chooses NOT to default: some economic pain due to an instant balanced budget.
Sole authority to borrow money rests with Congress. All bills for raising revenue (including credit) must originate in the House.
Refusing to raise the limit won’t BREAK the system - it will REVEAL the truth of matters, that the system has already been broken.
In order to keep feeding the banksters and the tax thieves, Obama will have to mount a coup. Good.
Bring it on. If not now, when?
The President has no such authority. There is, in fact, no such thing as "martial law" in the United States.
Fear Mongering 101
Come on....the only way we default is if they don’t pay the interest on the debt. There is plenty in revenues to pay this....
Ugh....I loathe the Democrats and their “the sky is gonna fall”...”emergency”....mantra in order to push their Socialist...”collective” agenda.
One cannot rule out incompetence on the part of the president.
Sponsor: Sen Reid, Harry [NV] (introduced 10/8/2013)
See,harry already introduced a Bill to save us,the House will extract a few concessions then all will be fine,for a little while;)
Considering dear leader’s passion for inflicting pain, I’d bet he would, not only for spite but to drive home his agenda for destruction.
The Sekester has flushed out the scare mongers. The shutdown has exposed the frauds. The debt limit will shine light the criminals. Let the sunshine and fresh air melt Dingty and his ‘Rat plantation.
Martial law on the national level may be declared by Congress or the president. Under Article I, Section 8, Clause 15, of the Constitution, Congress has the power “[t]o provide for calling forth the Militia to execute the Laws of the Union, suppress insurrections and repel Invasions.” Article II, Section 2, Clause 1, of the Constitution declares that “[t]he President shall be Commander in Chief of the Army and Navy of the United States, and of the Militia of the several States, when called into the actual Service of the United States.” Neither constitutional provision includes a direct reference to martial law. However, the Supreme Court has interpreted both to allow the declaration of martial law by the president or Congress.
It is pretty simple.
“There is no direct connection between the debt limit (actually the exhaustion of the Treasurys extraordinary measures to raise funds) and a default.”
And how come I have not heard any Republican leaders expressing that fact.
See how it works;)
I heard Hussein’s press conference today and now he is saying seniors risk not getting their social security checks. That is a new threat thrown in today. Make our seniors worry they will die without that money to buy food and medicine.
When the Rats are imploding. Keep quiet.
Sekester ... Nothing happened
Shutdown ... Nothing happened except Rat petulance
Debt limit ... Nothing will happen except a Rat smack down
“EXACTLY. So why do you think the HoR is not calling hearings?”
Because they are cowards and scared the dems would make THEM look bad for having hearings on a shutdown that dems would say was caused by Republicans etc Hearings WOULD work but only if conservatives were running them
If you go out and read Moody’s you just might be asking some even more pointed questions...like if current income is making a payment obligations and lower the actual debt principal like Moody’s infers...
Then the debt ceiling should be lowered and not raised, because we don’t need it raised at all.
So in other words.....they are saying....We need to raise the debt ceiling so that we can borrow the money we need just to pay the interest on what we have already borrowed. That doesn’t sound like a recipe for disaster at all.
People may find out that they don’t need the Federal Government,they can do fine on their own, that is what is scaring the hell out of the dems and RINOS!