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?
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...
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.
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 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
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?
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.
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.
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.
Default can’t happen here. Conservative financial experts have showed us the magic money tree! It doesn’t need no stinking production or exports!
[”Conservative.” Heh. That’s funny. In the politics and business of 2013, there are no conservatives.]
S&P is more conservative (honest) than Moody’s, BTW.
Texas Monthly hosted a Q&A with Dallas Fed Chair Richard Fisher at SMU on Monday. I attended. One of the questions he was asked was how can we default if we take in 200BN/month and debt servicing is in the range of 20BN/month.
This is a paraphrase of his answer: maybe we can pay the debt servicing and maybe not, but it doesn’t matter; the result will be the same - an unthinkable black swan disaster.
October is one of the lowest receipt months for the government and at the same time, about 1/3rd of annual expenses are funded during that month. There’s no guarantee that there actually would be money there to pay.
EVEN if there were cash on hand to pay for debt servicing, there is certainly not the money to pay debt servicing, SS, Medicare and the Military, not to mention everything after that. No matter how you prioritize and no matter whether you agree with it or not, great swaths of the economy are propped by the government and the inability to raise the debt limit will cause a serious of cascade failures that will rattle the markets, create worldwide stress fractures, and send interest rates through the roof.
It would be an unthinkable black swan disaster. His words.
Whether we fail to pay the debt directly in October, or have to refinance future debt in a post-black swan interest rate environment, the result is the same: both paths lead to default.
Don’t shoot the messenger.
Thanks for the numbers.
More scare tactics from our own government. Do they not care about how the markets may react to their propaganda?
I think we will default because it is Obama’s objective.
It looks like the day is almost here where people start opening their eyes and see who the problem is. Pray the Pubs don't shoot themselves in the foot.