US Treasury urges Congress to increase debt limit

originally posted by: dukeofjive696969

originally posted by: WilliamtheResolute

originally posted by: dukeofjive696969

originally posted by: xuenchen
a reply to: dukeofjive696969

A "swish" moment locked in time warp.

Even better, this time you posted a meme, but hurry now go click that alert button, gotta tell those mods how the evil canadian commie is picking on you again.

Oh and the only punchline in this thread is you.

Who knew it was so easy to trigger a Canadian?

Come on man, you can do better than parroting the only thing trump fans have, so no proof as usual, just banter,dont quit your day job.

This is my day job, I'm retired. I have made it a point to inform those Canadians who loved Obama about reality. I offer the same proof I put forth in an earlier post....don't take my word for this, please Google it or I can do it for you:

The timing of this is directly traceable to Obama and John Boehner who agreed in 2015 to "kick the can" down the road until March 2017 and permit Obama's overspending by $80 billion dollars.

" This situation " This situation just illustrates the complicity of our Legislators on both sides of Congress in avoiding any substantive changes to try and fix the budget. If Trump is able to stop the fiscal hemorrhaging it will be more that your Saint Obama ever attempted in his eight year reign....."

The debt limit should not be a bipartisan political agenda. It will be raised or the military and government office have to close or be cut back. That's not something you can do overnight.

Default is not in anyone's best interest including foreign countries like Canada.

Fixing the future budget, like someone earlier said, to address this and many items is what is needed.

This has been in motion and everyone has been kicking the can down the road for at least the last 16 years.

a reply to: xuenchen

Funny how that article did that, made it seem like it was current events that the credit rating was getting downgraded.

To really make America Great again, end The Fed.

a reply to: WilliamtheResolute

No, just an evil commie Canadian, dukeofjive's own description of itself. I'm Canadian and I usually pull the trigger ;-)

I find it funny though, that Treasury has to issue bonds to get money. Why don't they just buy some printing presses and start churning out their own money? Oh wait, I remember now, JFK and exec order 11110 I think it was. Something about taking responsibility away from the criminal banking cartel and getting killed. We have the same problem with Treasury in Canada. PE Trudeau the author of the spawn that is now pm here, ordered Treasury to use bonds to borrow money from IMF and charter banks in 1973. Our national debt in 1973 was about 15.8 billion, by 1978 it was over 600 billion. Now we are floating around 1.4 trillion. I would expect half of that went into bankers pockets, maybe more.

Cheers - Dave

originally posted by: D8Tee
a reply to: xuenchen

Funny how that article did that, made it seem like it was current events that the credit rating was getting downgraded.

To really make America Great again, end The Fed.

They tried to deflect away from the last Administration.

You guys do realize the debt ceiling was first put in back in 1917 and has been raised constantly since.
Raising it now really means nothing.
Its been raised 90 times alone in the 20th century.
There is no way out this late in the game.
Crash it now or crash it later , the end result is still the same.

I'll rinse and repeat one more time for the brain dead, there is no solution and everyone inside the beltway already knows this.

Buck

a reply to: xuenchen


As long as they can print money they will, because the alternatives are to horrendous to imagine . The ECB is doing the same because all their Banks are just as insolvent as American ones. The West has one financial system based on Bubbles and fiat, that's why it all went down together in 2008.Then they printed and got the Banks going again. Problem being you can only do it for so long, in fact as long as the GDP is growing and can sustain the interest payments . The moment the GDP drops, you have to print more , you also have to control the run on precious metals, to make the fiat look good. You also have to control the Share market with the plunge protection teams. Since an unbacked currency only depends on trust, you have to control the real unemployment figures , the real GDP etc., which means you have to control the media. You also have to control how much cash is floating about. The fragility is palpable.

It all just a show, we were broke back in 71, that's why the Gold Standard had to go.
Every financial think-tank in the world has been working on this since that time and the present system is the only solution ( if you want to call it that ) is all that could be created. Just keep it running until somebody comes up with a better way.

As I said several times in the past, the same tactics to divide and disrupt the general populations in foreign countries are now been used against the citizenry here and its working very well indeed.
All of this is for a reason and that reason is money.

Buck

What effectively happens is a swap of financial assets for liquidity, that is what is done through Q.E.
There is no new printed money pumped into the system, the balance of the central bank is simply inflated and banks become more liquid.
Hence, they can loan money to entrepreneurs and businesses to start projects and create jobs.

The important question is obviously, what is the state of the economy? because any project must of course be profitable.
Moreover, if production is brought forward, houses/cars and so on that aren't being sold and thus placed in stock, that is not a good sign for the economy.

Printing money does not grow a economy, it simply provides liquidity.

There is a catch-22 in my opinion that is becoming more clear.
The debt ceiling needs to be raised because a lot of money goes to the US economy, if that dries up, it will have a huge negative impact on the economy and thus GDP.
Interest must be paid on the state debt, for now it is quite low but it is going to rise, hence an ever larger part of the state budget will go to interest payments.
The rate hikes are the new normal, also the ECB will do the same this year.
So something needs to be done in order to turn the tide in the current state finance, either cut spending drastically or raise more revenue through taxation in order to balance the budget and lower the debt.
If not, due to higher risk the interest on debt will rise like we have seen in Greece in 2010.
It will simply become unsustainable within a few years if nothing is done.

Why is this even a topic? Just increase the debt limit and go back to sleep.

The size of the debt is completely irrelevant. What you pay in taxes is completely irrelevant. All that matters is the purchasing power of your take home pay.

The value of money doesn't come from how much exists or how much as been printed. The value of money comes from how much people are willing to work for it based on what it can purchase. As long as people can continue to buy coke in the grocery store people will continue to work. People's desire to buy coke has nothing to do with how much debt the government has or how much money has been printed.

originally posted by: seasonal
a reply to: xuenchen

I think the US should not have the debt limit raised. If we were at a bank I wonder if they would give the US a loan?

We are still spending like we have to bail out the banks. Is that not done? Are we to keep on this pace of debt?

Is Trump going to continue this craziness?

Why should the US have a debt limit at all? We're the only country that does, and it's only because the Constitution couldn't scale properly to a large nation.