Skip to comments.Treasury’s Lew to warn lawmakers: No payments guaranteed if debt ceiling breached
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 ...
So Obama is going to order Lew to stop SS payments...
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
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?
“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.
“Obama will want to, but his people will tell him no.”
Exactly. His bankster cronies would never let him do it.
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.
Lew is fear-mongering. He expects us to cave in the face of his blackmail attempt. Congress should demand his resignation.
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.
Why? Does that even matter anymore?
Jack Lew is an anarchist extremist terrorist radical arsonist hostage-taker.
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.
Then he will be in jail before it is all over.
Arrest Jack Lew
At a minimum he needs to be in front of the finance committee TODAY.
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.
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.
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
oooh look, a slinky!
If he tries it, charges of sedition should be pressed followed by a trial that includes the death penalty.