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Wed Dec 26, 2012, 04:20 PM

 

U.S. will reach debt ceiling on Dec. 31: Geithner

WASHINGTON (MarketWatch) - The United States will reach the $16.4 trillion debt ceiling at the end of December, Treasury Secretary Timothy Geithner said Wednesday. In a letter to Senate and House leaders, Geithner wrote that the Treasury will soon undertake accounting maneuvers to create $200 billion in "headroom" that will delay a violation. It was unclear how long this headroom would last, he said, because tax and spending policies for 2013 are still under negotiation as part of talks to avert the so-called fiscal cliff. Such maneuvers would usually run for about two months, but if a deal on the fiscal cliff is not reached, the extraordinary measures could last longer, according to Geithner. "Treasury will provide more guidance regarding the expected duration of these measures when the policy outlook becomes clearer," he added. Congress must act to raise the debt limit. Republicans have said they want to use the debt-ceiling approval to win concessions on spending from the White House.

http://www.marketwatch.com/story/us-will-reach-debt-ceiling-on-dec-31-geithner-2012-12-26?link=MW_latest_news

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Reply U.S. will reach debt ceiling on Dec. 31: Geithner (Original post)
dkf Dec 2012 OP
TheMastersNemesis Dec 2012 #1
brooklynite Dec 2012 #2
pa28 Dec 2012 #5
tavernier Dec 2012 #3
SomethingFishy Dec 2012 #4
julian09 Dec 2012 #6

Response to dkf (Original post)

Wed Dec 26, 2012, 04:24 PM

1. HAPPY NEW YEAR!!!!!!!!!!!! LOL

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Response to dkf (Original post)

Wed Dec 26, 2012, 04:27 PM

2. Tightening the screws...

...on the GOP to come to a complete agreement on all fiscal cliff issues, OR to give the White House an opportunity to invalidate the Debt Limit statute as unconstitutional.

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Response to brooklynite (Reply #2)

Wed Dec 26, 2012, 05:48 PM

5. I'd like to see the White House challenge the debt ceiling statute.

Paying bills already authorized by Congress should never be an issue. Unfortunately Jay Carney has indicated that particular maneuver is off the table.

The administration might have to walk his statements back a bit before taking the constitutional route.

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Response to dkf (Original post)

Wed Dec 26, 2012, 04:31 PM

3. Headroom??

While the lunatics are running the asylum, perhaps "rubber room" would be a better worded phrase.

*my apologies in advance to any lunatics out there who take offense at being compared to politicians*

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Response to dkf (Original post)

Wed Dec 26, 2012, 05:20 PM

4. Oh for fucks sakes.. the "Debt Ceiling"

has nothing to do with "tax and spend". The debt ceiling is money to pay off what we already owe. Why the Democrats do not explain this until people get it and are tired of hearing it is beyond me.

Republicans would do well to remember who decided to go to war without paying for it.

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Response to SomethingFishy (Reply #4)

Wed Dec 26, 2012, 07:29 PM

6. Congress authorized spending with insufficient funds.

 

They have power of purse and have obligation to authorize debt to continue payment for the money they already spent.
This is unnecessary step because they already authorized the expenditure by passing the bill in first place.
They are using the debt ceiling to extract concessions or more accurately hold hostage the country's credit rating, for political gain.

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