Users Online Now:
2,321
(
Who's On?
)
Visitors Today:
597,598
Pageviews Today:
1,035,274
Threads Today:
431
Posts Today:
7,280
12:41 PM
Directory
Adv. Search
Topics
Forum
Back to Forum
Back to Thread
REPLY TO THREAD
Subject
Treasury Dept to invoke ‘extraordinary measures’ as Congress misses debt-ceiling deadline
User Name
Font color:
Default
Dark Red
Red
Orange
Brown
Yellow
Green
Olive
Cyan
Blue
Dark Blue
Indigo
Violet
Black
Font:
Default
Verdana
Tahoma
Ms Sans Serif
In accordance with industry accepted best practices we ask that users limit their copy / paste of copyrighted material to the relevant portions of the article you wish to discuss and no more than 50% of the source material, provide a link back to the original article and provide your original comments / criticism in your post with the article.
[quote:oniongrass:MV80ODY1NzYzXzg4ODYwMTg4Xzc3Q0U5NkU0] [quote:General Thade:MV80ODY1NzYzXzg4ODU3OTAwXzY1QTg4NzBG] Someone explain this please for the financially uneducated. [/quote] When you're in debt and can't make the payments, you can borrow more to make the payments, but of course it means future payments will be even bigger. Well maybe you can't, because after a while a bank wouldn't lend to someone who is mishandling their life this way. But the US can. It directs the Fed to lend it the money, which the Fed then creates and lends. The Fed does as it's told (and it can also trade for its own account, which some people worry about.) Thus the Fed allows us to expand debt-based money infinitely. We failed to pass the internal law that would allow us to direct the Fed to lend us the money to make the next round of payments on our current debt. That's what just happened. ********** We were starting to pay down debt during the Clinton administration, but then Clinton went on TV (this speech is impossible to find but I remember watching it) and said he'd start borrowing more because the world depended on being able to invest in US Treasury 30 year bonds, and if we're not borrowing we're not issuing bonds. He actually said that. My mouth was hanging open. And ever since then, the debt has mushroomed to unimaginable numbers. Now that I see how weird things have gotten 25 years later, I wonder if the intent was to get us into unpayable debt with such a level of craziness that nobody even knows how much we owe anymore. [/quote]
Original Message
The Treasury Department will begin conducting emergency cash-conservation steps on Monday to avoid busting the federal borrowing limit after a two-year suspension of the debt ceiling expired at the end of July.
Economists say those so-called extraordinary measures will allow Treasury to pay off the government’s bills without floating new debt for two to three months. After that, Congress will need to either raise or suspend the borrowing limit or risk the U.S. defaulting on its obligations.
[
link to www.cnbc.com (secure)
]
Pictures (click to insert)
General
Politics
Bananas
People
Potentially Offensive
Emotions
Big Round Smilies
Aliens and Space
Friendship & Love
Textual
Doom
Misc Small Smilies
Religion
Love
Random
View All Categories
|
Next Page >>