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WASHINGTON (Reuters) – The United States may hit the legal limit on its ability to borrow by March 31 and faces serious consequences unless Congress acts by then to raise it, Treasury Secretary Timothy Geithner said on Thursday.
"Even a short-term or limited default would have catastrophic economic consequences that would last for decades," Geithner said in a letter to U.S. Senate Majority leader Harry Reid that was issued by Treasury.
Geithner said it was hard to pin down exactly when the current $14.3 trillion ceiling on the debt limit would be pierced but urged Congress to act bef
Ron declared that he is not in favor of raising the debt ceiling saying “I never voted for any of the spending, so why should I raise the debt for the people who’ve been spending the money? For me it’s a very comfortable vote.” Ron admitted if the debt limit isn’t increased it will cause problems, but thought that the alternative of continuing to borrow and spend endless money is much worse, and instead would rather face reality today.
The younger Paul dismissed Goolsbee’s warning and claimed since President Obama voted against raising the debt ceiling as a senator, “it’s a little disingenuous for [his] people to say ‘oh the sky is falling if we don’t do it.’” However, Rand is a bit more pragmatic than his father, suggesting “I’ll vote to raise the debt ceiling if we attach a balanced budget rule to it. If they say no more debt will be added and from here on out we’ll balance the budget, I’ll vote one time to raise the debt ceiling.”
Originally posted by sonofliberty1776
Even should they pass a balanced budget rule, they will install some loophole allowing the continued waste/fraud/abuse we see currently. I say NO. Leave the ceiling as is and cut spending now.
Yes, it is past time to begin setting things straight. There will be pain, there will be blood. Waiting will only make things worse.
Originally posted by MikeboydUS
I have to ask those who are against raising the debt ceiling:
Are you ready?
Unless you are prepared for the crisis, I would not be quick to invite it.
edit on 6/1/11 by MikeboydUS because: r
Originally posted by MikeboydUS
If the US Congress still at this point refuses to pass a new debt ceiling, three things will follow.
1. The US credit rating will drop
2. The US dollar value will freefall
3. The BIS, Bank for International Settlements and the IMF, will push the President into negotiating Debt Restructuring including harsh austerity measures.
Yeah I read a tongue in cheek series about something like that about 25 years ago or so. It was by Piers Anthony, called bio of a space tyrant. Basically, he extrapolated the world out into the solar system. The "USA" in the series was in the same position we find ourselves now. The protagonist assumed dictatorial powers via Constitutional convention in order to fix all the problems the "country" had. It was an interesting take. In the books, he was a benevolent dictator. In reality, there is no such thing as a benevolent dictator. No, we must face our problems head on. We need to make cuts; serious, deep cuts. The entitlement state must end. Socialism cannot work long term. That is being seen all over the world. We are no exception.
Originally posted by tiger5
Basically All governemnts are terrified of the civil unreast that would arise from the cuts that would be necessary to reduce budget spending. Frankly I think it may well need a dictatorship to implement the cuts in a reasonable timescale.