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Treasury Secretary Timothy Geithner said Monday that he will immediately halt investments in two big government pension plans so the government can continue to borrow money.
Geithner informed Congress of his decision in a letter stating that the government had officially reached its $14.3 trillion borrowing limit. He repeated a warning that if lawmakers do not increase the borrowing limit by August 2, the government is at risk of an unprecedented default on its debt.
Republicans in Congress, joined by a few Democrats, have said they will not vote for an increase unless Congress and the White House agree to cut about $2 trillion in projected spending for the next decade and to impose budget controls that will force additional trillions of dollars in savings. While the White House has criticized such threats to hold the debt limit hostage, given the global financial stakes, the administration is in negotiations with Congressional leaders to reach a bipartisan budget deal.
Originally posted by Skerrako
Here comes the austerity
Originally posted by DaddyBare
So tell me...
do you think the Feds will have to start issuing IOUs... instead of Social Security checks and food stamps???
If so will anyone in their right mind mind take one????
Originally posted by MikeboydUS
We can't just hit reset if they crash the system.
If we crash the system right now, every American with an IRA or 401K will lose it. Social Security and Medicare will vanish. In other words every American over 65 will lose practically everything. Those about to retire will lose almost everything and be unable to retire.
You want to see the country burn down? Thats what will happen.
The system has to change with a gradual transition.