Debt limit set to be hit on Monday

smallchange

The debt limit is expected to be reached on Monday, if it is not raised will interest rates rise. Will this be a negative for PM's

Jim

CaptHenway

Boehner is threatening to start negotiations.
We will see.

RedHerring

Not a problem. We'll just have Ben throw a couple more trillion on the fire.

derryb

Let's take it from the federal retirees.

Coins101

They are not taking it, they are just halting it:

“Debt limit reached, US halts 2 pension investments”

“Even though the government has reached its official borrowing limit, Geithner said unexpected revenue and bookkeeping maneuvers will allow the Treasury to continue auctioning debt for another 11 weeks”

bookkeeping maneuvers = Cooking the books? Hopefully, they won't burn them.

secondrepublic

I don't see the problem here. Government takes in more than enough revenue every month to pay interest on all existing government debts. The problem is OVERSPENDING. No new debt. Time to cut up the credit card before it bankrupts us all.

SanctionII

I saw a report today the Uncle Sam is currently borrowing at a rate of $58,000.00 per second.

That is some serious quan, baby,.................................................. some very serious quan.

Wonder what will happen when the merry go round stops?

derryb

<< <i>I saw a report today the Uncle Sam is currently borrowing at a rate of $58,000.00 per second.

That is some serious quan, baby,.................................................. some very serious quan.

Wonder what will happen when the merry go round stops? >>


"Got Gold?"

Overdate

<< I saw a report today the Uncle Sam is currently borrowing at a rate of $58,000.00 per second. >>

I just found 6 cents under the couch cushions. Should I spend it or donate the money to fund 1 microsecond of government borrowing?

mrearlygold

<< <i>Let's take it from the federal retirees. >>




Throw in the local government parasites in that mix.

Stork

<< <i>They are not taking it, they are just halting it:

“Debt limit reached, US halts 2 pension investments”

“Even though the government has reached its official borrowing limit, Geithner said unexpected revenue and bookkeeping maneuvers will allow the Treasury to continue auctioning debt for another 11 weeks”

bookkeeping maneuvers = Cooking the books? Hopefully, they won't burn them. >>



Lacking any facts to back me up...I interpret this to mean that as I get my paycheck next time it will show the customary deduction for my Thrift Savings Plan. Instead of my money then landing into my TSP account it will....go elsewhere.

Last time the way things were done was that the Treasury 'borrowed' from the money market fund of the TSP and then paid it back (can you see this being allowed at Vanguard?). This time it sounds like they are happy to take my pay, but it will not be invested until 'later', guaranteed by law I'm sure--the same laws that authorized the expensed Congress is not willing to pay for.

If this is true I know one Navy gal who won't be 'contributing' to the TSP soon....

Sigh.

edited to add:

Clarification regarding funds affected

Well, not exactly the Thrift Savings Plan, but still enough to make one say hmmm. I still remember the actual 'borrowing' from the TSP money market back in the day. I'd say 'inconceivable' but we know how that goes.

Steve27

I saw a news report which indicated one of the potential ways to keep the government running until the debt limit is raised is to sell the gold in Fort Knox. They said it would only buy them a few months.

WarHoundR69

If there is gold in Fort Knox. Shades of Goldfinger - I hope Ron Paul does his audit of the Fed.

Justacommeman

I wonder what gets settled first:

The debt limit ceiling

or

The NFL Strike

I'm guessing most Americans would hope it's the NFL Strike that get's settled first. This time I'm with the masses............MJ

DrBuster

What's the estimate, the US federal government spends roughly $41 billion each and every 10 hours of operation? Heard that number a few times. Fort Knox gold would be what, a day or 2 of spending.

Overdate

<< <i>What's the estimate, the US federal government spends roughly $41 billion each and every 10 hours of operation? Heard that number a few times. Fort Knox gold would be what, a day or 2 of spending. >>


I think it's more like $4.1 billion, but haven't done the detailed calculations.

DrBuster

<< <i>

<< <i>What's the estimate, the US federal government spends roughly $41 billion each and every 10 hours of operation? Heard that number a few times. Fort Knox gold would be what, a day or 2 of spending. >>


I think it's more like $4.1 billion, but haven't done the detailed calculations. >>



I looked it up, it's roughly 4.3 and not the 41. Had a byte read wrong reading on the oil tax break brewha.

http://www.americanthinker.com/2011/05/about_those_oil_subsidies.html

gecko109

<< <i>What's the estimate, the US federal government spends roughly $41 billion each and every 10 hours of operation? Heard that number a few times. Fort Knox gold would be what, a day or 2 of spending. >>





Total U.S. gold holdings....if accurately reported.....is about $400 billion. Not sure of the breakdown on where its all stored, but im sure the bulk is in Ft. Knox.


If its true that the U.S. spends roughly $4.3 billion per day in operating expenses (and I think its a lot closer to $10 billion/day based on the $3.8 trillion annual budget), then we have enough gold to operate for 93 days. Or just 40 days going by my estimates.

Leham

<< <i>I wonder what gets settled first:

The debt limit ceiling

or

The NFL Strike

I'm guessing most Americans would hope it's the NFL Strike that get's settled first. This time I'm with the masses >>

Leham

Also, if the government dumps all that gold on the market.

You can bet the farm that they won't be able to sell at $1500/ozt.

DrBuster

I think the 10 hour figure adjusts to a 24/7 schedule for the true numbers.....

johnny9434

God help this country. Its gonna need it

renman95

No worries. Robert Rubin says the "debt ceiling is an anachronism." It's an obsolete idea, a throwback. I have a new slogan for the Fed..."Print Baby, Print!" And I have a bit of unsolicited advise for the sheeple..."prepare baby, prepare."

Frankcoins

<< <i>No worries. Robert Rubin says the "debt ceiling is an anachronism." It's an obsolete idea, a throwback. I have a new slogan for the Fed..."Print Baby, Print!" And I have a bit of unsolicited advise for the sheeple..."prepare baby, prepare." >>



There was no debt limit until 1917. Then, with the entry into World War I, a limit was set on HOW MANY LIBERTY BONDS could be sold. Instead of repealing the law after the war, the law remained. The ceiling is no longer really necessary, given Congress' budgetary power and process—as well as the realities of the budget itself. "It used to help control the amount you could appropriate," explains Stan Collender, a partner at Qorvis and longtime budget watcher and expert. "But so much of the debt is mandatory now." He continues: "The truth is: You shouldn't have to raise the debt ceiling separately. The debt ceiling should be raised automatically when Congress agrees to a conference report on a budget resolution. That's how it's supposed to work. It is an anachronism."

And a number of wonks agree with him. Former Reagan domestic policy adviser Bruce Bartlett, for instance, has railed against it—in particular, its use as a political football. "As far as I am aware, no other country on Earth has the idiotic policy that the United States has of having a legal limit on the amount of bonds the central government can issue," he writes. "They correctly recognize that the deficit and the debt are simply residuals resulting from the government's tax and spending policies. It makes no sense to treat the debt as if it is an independent variable."

Overdate

Regardless of its history, the debt limit provides great leverage to those who wish to cut federal spending. Especially since a majority of Americans are opposed to raising the limit.

This whole debate would have been unnecessary if the U.S. hadn't discarded two other "anachronisms", the balanced budget and the gold standard.