Mon Dec 31, 2012, 06:21 PM
Hissyspit (44,059 posts)
U.S. Officially Hits Debt Ceiling - Geithner
Source: Washington Post
U.S. officially hits debt ceiling
By Felicia Sonmez, Published: MONDAY, DECEMBER 31, 6:07 PM ET
As promised, Treasury Secretary Timothy Geithner on Monday night formally notified Congress that the United States has reached its $16.4 trillion debt ceiling.
In a letter to lawmakers, Geithner wrote that the government will take extraordinary measures to extend the deadline until Feb. 28, 2013.
Read more: http://www.washingtonpost.com/blogs/post-politics/wp/2012/12/31/u-s-officially-hits-debt-ceiling
17 replies, 3426 views
U.S. Officially Hits Debt Ceiling - Geithner (Original post)
|Wolf Frankula||Dec 2012||#2|
Response to Hissyspit (Original post)
Mon Dec 31, 2012, 06:35 PM
Wolf Frankula (1,037 posts)
2. No, that means we print money and pay in cash
"The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned"
From the Fourteenth amendment to the Constitution.
Response to Wolf Frankula (Reply #2)
Mon Dec 31, 2012, 07:43 PM
Igel (21,120 posts)
13. No, it means they raid every account that has cash in it and use that.
They, if wise, postpone expensing things and let them run things on account until they're actually due, and they'd even try to curtail spending as much as possible.
Last time Geithner played politics. There were tax revenues due that would easily cover things by the end of the month. There was the need to pull money out of the cash funds for Social Security for the payment at the beginning of the next month. And there was a mandatory interest payment on government debt coming due a week or two before the end of the month.
It would be easy to keep the cash, pay the debt, let the tax revenue come in to cover Social Security. That would give the government a few more weeks.
Geithner sequenced it otherwise: Pull all the cash for Social Security. Announce that there wasn't cash to pay the government debt. It was a rigged crisis--it would have happened a month later, anyway. It forced a settlement, a conclusion to the crisis.
And that glorious solution was the Budget Control Act. Colloquially known as "the fiscal cliff."
I don't know that the 14th amendment covers Social Security. It certainly doesn't cover salaries or other contracts. There are two kinds of "public debt"--that owned by the public and that owned by other US government agencies. The amendment's examples are only the former, and the intragovernmental debt was trivial and not at issue when the 14th amendment was passed.
Response to dixiegrrrrl (Reply #15)
Mon Dec 31, 2012, 09:48 PM
Downwinder (9,971 posts)
16. I'm not sure what that means. Does that mean
that I cannot attach the Federal Courthouse if I don't get a SS check? I was looking forward to getting some of the woodwork and paneling out of the fifth circuit building in NOLA. It is impressive.
Response to Cali_Democrat (Reply #4)
Tue Jan 1, 2013, 01:32 PM
ROBROX (392 posts)
17. GREAT IDEA TO CUT THE FAT
The DOD is just a giant was of money and time. Why is DOD allowed more than 25% of the budget???
When a more intelligent group is in government the changes required to have a better nation and government will happen.