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Treasury’s Lew to warn lawmakers: No payments guaranteed if debt ceiling breached
Washington Post ^ | October 9, 2013 | By Zachary A. Goldfarb and Lori Montgomery

Posted on 10/09/2013 10:25:01 PM PDT by Brad from Tennessee

Treasury Secretary Jack Lew plans to warn lawmakers Thursday that he will be unable to guarantee payments to any group — whether Social Security recipients or U.S. bondholders — unless Congress approves an increase in the federal debt limit.

With Washington in gridlock and a key deadline in the debt-limit debate just one week off, Lew plans to tell a Senate panel that he would do all he can to minimize the pain of breaching the $16.7 trillion debt limit, according to Treasury officials briefed on the testimony. But Lew will also note that in an unprecedented situation in which he would be relying entirely on the erratic flow of incoming revenue, the economy would suffer and there would not even be certainty that the government could make all interest payments.

With anxiety growing about that outcome, Republicans in the House and the Senate were floating ideas Wednesday for raising the debt limit — if only for a short time — in hopes of forcing President Obama to the negotiating table. . .

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Front Page News
KEYWORDS: hack
The administration is leaking Lew's planned testimony to produce the maximum negative impact on the markets when they open this morning. This is a dangerous game because many can't differentiate between Obama Theater and genuine danger.
1 posted on 10/09/2013 10:25:01 PM PDT by Brad from Tennessee
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To: Brad from Tennessee

Jack Lew is holding a gun to our heads! /s


2 posted on 10/09/2013 10:28:23 PM PDT by mylife (Ted Cruz understands the law, and he does not fear the unlawful.)
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To: Brad from Tennessee

Boehner and Ryan will cave. Bet on it.


3 posted on 10/09/2013 10:29:26 PM PDT by montag813 (NO AMNESTY * ENFORCE THE LAW * http://StandWithArizona.com)
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To: Brad from Tennessee

Seems the Beltway Libtards are out in force on the compost comments tonight.


4 posted on 10/09/2013 10:34:04 PM PDT by mylife (Ted Cruz understands the law, and he does not fear the unlawful.)
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To: Brad from Tennessee

... Lew plans to tell a Senate panel that he would do all he can to minimize the pain ....

Make sure Mr. Lew is under oath when he tells this lie.


5 posted on 10/09/2013 10:36:22 PM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: Brad from Tennessee

A clear violation of the explicit provisions of the United States Constitution.

Impeach him immediately just for suggesting such a thing.

He’s a danger to the security and well-being of the people.


6 posted on 10/09/2013 10:36:40 PM PDT by EternalVigilance
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To: Brad from Tennessee
Cave now and maybe we'll negotiate.......later!

What a concept, even moderate GOP members would jump at the opportunity of a lifetime like this.

After hearing Sen. Johnson (R Wisconsin's split-tongued Senator) on Levin this evening, I'm really beginning to understand what an uphill messy brawl we're going to have, ridding the Party of such sell outs, who can only imagine themselves "making bipartisan agreements rather than refusing to cooperate!"

7 posted on 10/09/2013 10:36:43 PM PDT by zerosix (Native Sunflower)
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To: Brad from Tennessee
The thing to do is pass a one week DL increase with no CR. Keeping doing that to Obama caves.

I’m also convinced that the only way to stop amnesty is to keep the shutdown/DL going for as long as possible.

8 posted on 10/09/2013 10:38:13 PM PDT by Conservative Actuary
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To: Brad from Tennessee

Failure to make the debt payments even though there is far more than enough to do so should be an impeachable offense even for the most craven Democrats. I think they will enjoy threatening it, but would never do it. Obama will want to, but his people will tell him no.


9 posted on 10/09/2013 10:38:56 PM PDT by Defiant (GOPe Strategy: We have to fund Obamacare in order to see how bad it is. Good idea, guys!)
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To: EternalVigilance

Bump.


10 posted on 10/09/2013 10:46:32 PM PDT by Gene Eric (Don't be a statist!)
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To: Brad from Tennessee

Another govt punk that thinks he’s above the law and constitution.

An orange jumpsuit awaits you punk.


11 posted on 10/09/2013 10:50:19 PM PDT by Kevin in California
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To: Brad from Tennessee

Sure, just raise it some more, what's the worst that could happen?

12 posted on 10/09/2013 10:51:12 PM PDT by RC one
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To: Brad from Tennessee; All
Impeach Lew

It is time.

That would send the correct message.

The Obots are LYING!!

13 posted on 10/09/2013 11:00:12 PM PDT by Kansas58
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To: mylife

Its the same thing I always do when my credit card limit is reached:...Threaten the bank!..I say Look..I’ve faithfully paid the interest owed for years....Either up my credit limit or I ain’t paying you any interest ever again..../s


14 posted on 10/09/2013 11:05:09 PM PDT by M-cubed
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To: Brad from Tennessee

Democrats to America: give us what we want or else!


15 posted on 10/09/2013 11:05:46 PM PDT by Tzimisce (The American Revolution began when the British attempted to disarm the Colonists.)
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To: mylife

Jack Lew is holding a gun to our heads!

Really? The Senate confirmed him!! I will bet 44 Republicans voted for this Progressive!!! We get what we voted for!!!


16 posted on 10/09/2013 11:19:42 PM PDT by tallyhoe
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To: montag813

maybe be they have done a fantastic job since this began


17 posted on 10/09/2013 11:30:16 PM PDT by genghis
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To: tallyhoe

” We get what we voted for!!!”
_________________________________________
Yes, there is now only one party...The Republicrats, and all, but maybe a few of them, are filthy to the core.


18 posted on 10/09/2013 11:30:34 PM PDT by AlexW
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To: Brad from Tennessee

What about EBT cards? Can they guarantee payment on those? I can damn guarantee you that they will! After all, the administration has priorities.


19 posted on 10/09/2013 11:45:51 PM PDT by Cowboy Bob (They are called "Liberals" because the word "parasite" was already taken.)
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To: mylife

This “LEW” is full of crap! Time to flush him down the toilet of politics.

Come on Republicans. Grow a pair and attack this piece of leftist crap like bacteria in a cesspool would.

Challenge almost everything he says. Make him prove what he claims, and cut off Treasury funding when you can.


20 posted on 10/09/2013 11:53:30 PM PDT by MadMax, the Grinning Reaper
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To: Brad from Tennessee

So Obama is going to order Lew to stop SS payments...


21 posted on 10/10/2013 12:47:13 AM PDT by RginTN
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To: Brad from Tennessee

22 posted on 10/10/2013 1:17:00 AM PDT by Brown Deer (Pray for 0bama. Psalm 109:8)
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To: Brad from Tennessee

This hack is such a bad liar you can tell even he doesn’t believe his BS

Its vital that he be proven a liar by not increasing the debt limit


23 posted on 10/10/2013 1:35:14 AM PDT by Rome2000 (THE WASHINGTONIANS AND UNIVERSAL SUFFRAGE ARE THE ENEMY -ROTATE THE CAPITAL AMONGST THE STATES)
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To: Brad from Tennessee
Republicans ... were floating ideas ... for raising the debt limit — if only for a short time — in hopes of forcing President [Ø]bama to the negotiating table. . .

How the hell does that work? Defeatist thinking: Since not raising the DL does not bring Ø to negotiate, then raising the DL will bring Ø negotiate? Can't they get it thru their collective skulls that Ø wants the crisis of no DL increase?

24 posted on 10/10/2013 1:58:57 AM PDT by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: Brad from Tennessee

“But Lew will also note that in an unprecedented situation in which he would be relying entirely on the erratic flow of incoming revenue, the economy would suffer and there would not even be certainty that the government could make all interest payments. “

Baloney. The only reasons why there would be a default on interest payments is either incompetence, or a choice to default on the part of Mr. Lew, or more accurately His Petulance. There is more than sufficient revenue to make interest payments. It’s a matter of prioritization of payments.

This is all about avoiding the instant balanced budget that a failure to raise the debt ceiling would cause.


25 posted on 10/10/2013 2:11:58 AM PDT by RKBA Democrat (Power disintegrates when people withdraw their obedience and support)
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To: Defiant

“Obama will want to, but his people will tell him no.”

Exactly. His bankster cronies would never let him do it.


26 posted on 10/10/2013 2:13:54 AM PDT by RKBA Democrat (Power disintegrates when people withdraw their obedience and support)
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To: Brad from Tennessee; All

By the way folks, a really good indication of what is going to happen will play out in the markets. Have you seen the stock market crater? Has the price of gold shot through the roof of late? Has the dollar dramatically dropped in price?

No, no, and no. While the maladministration is trying to jawbone the apocalypse, the markets aren’t buying it. Nor should we.


27 posted on 10/10/2013 2:21:10 AM PDT by RKBA Democrat (Power disintegrates when people withdraw their obedience and support)
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To: RKBA Democrat

Lew is fear-mongering. He expects us to cave in the face of his blackmail attempt. Congress should demand his resignation.


28 posted on 10/10/2013 2:30:50 AM PDT by Rapscallion (Vlad the Impaler proposed no path to citizenship. Consider that.)
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To: RKBA Democrat

Or is it a case that the regime has cried wolf too many times?

I’ve heard both outcomes now. Catastrophe and Moody’s statement of confusion at the scare mongering, because there is plenty of income to service the debt.

The only thing I can really think is the United States financial books are truly ‘cooked.’ The President knows it, Reid knows it, and Boehner knows it. In my mind there can only be one of two things true.

Either Moody’s conclusion or the Regimes conclusion. One is real that other is a crime of massive proportions.


29 posted on 10/10/2013 2:56:32 AM PDT by EBH ( The Day of the Patriot has arrived.)
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To: Oldeconomybuyer
Make sure Mr. Lew is under oath when he tells this lie.

Why? Does that even matter anymore?

30 posted on 10/10/2013 3:29:11 AM PDT by hattend (Firearms and ammunition...the only growing industries under the Obama regime.)
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To: mylife

Jack Lew is an anarchist extremist terrorist radical arsonist hostage-taker.


31 posted on 10/10/2013 3:41:23 AM PDT by Tailgunner Joe
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To: C210N

You are correct. It is just like a strike. You need leverage. The leverage is no hike of the limit. Give that up, then you give up your leverage.

The concern is not paying out some of the other goodies such as social security, covering costs of securing the country (e.g. the important parts of the military etc.) while paying the interest on the debt. That could be a serious political problem.


32 posted on 10/10/2013 4:31:42 AM PDT by hawkaw
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To: Brad from Tennessee

Then he will be in jail before it is all over.


33 posted on 10/10/2013 4:37:25 AM PDT by LibLieSlayer (FROM MY COLD, DEAD HANDS!)
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To: Brad from Tennessee

Arrest Jack Lew


34 posted on 10/10/2013 4:37:57 AM PDT by Uncle Chip
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To: EternalVigilance
Impeach him immediately just for suggesting such a thing.

At a minimum he needs to be in front of the finance committee TODAY.

35 posted on 10/10/2013 4:40:14 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: Brad from Tennessee
A day after the treasury fails to pay the interest payments, large holders of US debt will start dumping US bonds, driving their value down & interest rates up sharply. The dollar will lose significant value. The DOW will go steeply south.

World chaos & outrage will ensue. A domino effect will occur in collapsing economies. It could easily lead to WWIII, with the USA as the primary bad guy.

Any past President would never let that happen, but Obama has a long record of doing that which harms this country the most, so I have little confidence that Obama would do the right thing, & a real concern that he will purposely destroy the US & world economy as a prelude to his dictatorship.

Though I think his chances of becoming dictator are slim & none, the damage he could do is immeasurable.

36 posted on 10/10/2013 4:49:15 AM PDT by Mister Da (The mark of a wise man is not what he knows, but what he knows he doesn't know!)
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To: central_va

The finance committee is busily stuffing their pockets with gold even as the ship of state sinks. Don’t expect them to do anything until long after the damage is done.


37 posted on 10/10/2013 5:02:34 AM PDT by Mister Da (The mark of a wise man is not what he knows, but what he knows he doesn't know!)
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To: Brad from Tennessee

Full of bull, much, Mr Lew?

Regardless of what happens on Oct 17 the USG will continue to collect over $2 Trillion in federal taxes to fund the govt and by federal statue, is required to pay the interest on its debt, which is about 10% of that tax being collected

the rest of that tax collected could fund the govt at its 2001 spending level, when few of us were freezing or starving or begging in the streets. About a 25% reduction in givt spending across the board. Tough for some but not life threatening unless Barack-cade Obama orders the govt to make it so.

There will be no “default” unless one is ordered by Barack-cade Obama, bower to Kings of Saudi and Presidents of China, who would jerk his chain hard if he tried


38 posted on 10/10/2013 5:09:41 AM PDT by silverleaf (Age takes a toll: Please have exact change)
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To: Brown Deer

oooh look, a slinky!


39 posted on 10/10/2013 5:10:40 AM PDT by silverleaf (Age takes a toll: Please have exact change)
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To: Brad from Tennessee

If he tries it, charges of sedition should be pressed followed by a trial that includes the death penalty.


40 posted on 10/10/2013 5:10:52 AM PDT by sergeantdave
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To: Brad from Tennessee

Jack Lew, what a liar !

right here in the Bureau of Public Debt’s own “Strategic Plan” (page 9) they claim to be ready to operate even after “terrorism, cyber attacks, natural disasters or pandemic illnesses”.

http://www.publicdebt.treas.gov/whatwedo/bpdstrategicplan09-14.pdf

and now they claim they can’t guarantee debt payment prioritization even with 2 weeks notice... LIE !


41 posted on 10/10/2013 5:14:09 AM PDT by Reverend Wright (1990 Budget Agreement: learn from other's mistakes)
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To: Brad from Tennessee

Jerk Loo, thanks for the warning. We certainly can’t afford to put limits on the imperial government’s spending binge!


42 posted on 10/10/2013 5:24:13 AM PDT by windsorknot (>>>)
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To: RKBA Democrat

Think for a moment. They don’t send out the SS checks. What happens to the banks when that huge amount of money doesn’t get deposited? I don’t think the “bankers” will allow this.


43 posted on 10/10/2013 5:37:39 AM PDT by vortec94
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To: Brad from Tennessee

That’s illegal.


44 posted on 10/10/2013 6:22:31 AM PDT by struggle
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To: EternalVigilance

I agree!

Start drawing up the Articles of Impeachment, now.

Since Moody’s has declared that “default” would be an illegal CHOICE made by Lew, IMPEACHMENT is the proper Constitutional remedy for the “high crime” Lew has threatened.


45 posted on 10/10/2013 7:17:10 AM PDT by pfony1
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To: pfony1

Bump.


46 posted on 10/10/2013 7:29:54 AM PDT by EternalVigilance
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To: All
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47 posted on 10/10/2013 7:49:07 AM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: hawkaw

Time for a RICO case to be brought against Lew, DOI and the NPS. Extorting the citizenry for funding.


48 posted on 10/10/2013 8:05:15 AM PDT by Bshaw (A nefarious deceit is upon us all!)
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