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Debt limit reached, US halts 2 pension investments

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posted on May, 16 2011 @ 12:30 PM
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Debt limit reached, US halts 2 pension investments


news.yahoo.com

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.
(visit the link for the full news article)

UP DATE FROM THE NY TIMES



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.

Link to NY Times version of story
edit on 16-5-2011 by DaddyBare because: (no reason given)

edit on 16-5-2011 by DaddyBare because: (no reason given)




posted on May, 16 2011 @ 12:30 PM
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The deficit is the difference between what the government spends and what it takes in through taxes and other revenue. The Congressional Budget Office projects that this year's deficit will total $1.4 trillion. That's would nearly match 2009's record imbalance and mark the third straight year in which the federal deficit has exceeded $1 trillion.

Another big screw up is that in the past whenever the government ran low on cash they borrowed it form Social Security.

Once upon a time there was a surplus there but in there infinite wisdom our government chose to use that money to pay for other projects. thus emptying out those coffers...

Now we wait... if they dont raise the debt limit by April 2nd... things are going to get really nasty..

news.yahoo.com
(visit the link for the full news article)
edit on 16-5-2011 by DaddyBare because: (no reason given)



posted on May, 16 2011 @ 12:37 PM
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Next Stop, Tapping Americans 401k. Nothen to see here, o look, american idle is on



posted on May, 16 2011 @ 12:39 PM
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What does "borrowing" actually mean?

Is it the action of going to a bank/country and asking for a loan like you and I would go to the bank to borrow money for a car, or does that mean the printing presses are going to be fired back up to print more counterfeit money.



posted on May, 16 2011 @ 12:45 PM
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Here comes the austerity

Second



posted on May, 16 2011 @ 12:49 PM
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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????



posted on May, 16 2011 @ 12:51 PM
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They have raised the debt ceiling several times in the past. They will raise it again. It's all smoke and mirrors. There is nothing to worry about. Debt ceilings are meaningless, because they can always be raised. If it really was a ceiling, it would have been hit 100 years ago. It will always be raised. I'm not worried, its just another scare tactic into getting their way. They will pass some bill they've been itching to pass for a while now, using the ceiling as their excuse. That's how the government works. It's not democracy, it's scareocracy. People will accept anything if they are afraid. Just like all the excuses made from 9/11, scare people into submission. Same tactics being used here. And it will work, like a charm. But really, there is nothing to be afraid of, it's all make believe fear.



posted on May, 16 2011 @ 12:58 PM
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reply to post by xxshadowfaxx
 


It is complete BS, but that doesn't mean they will raise the debt ceiling. Not a certainty this time around. I think they do mean to cause "austerity" or more accurately...population control of the elderly and other non-consumers. Western civilizations fertility rate has been in decline for decades. This is a means to re-balance population stratification by wiping out some of the older folks. That's all. Just another leg in the depopulation agenda. I'm not necessarily in disagreement with it at this point.



posted on May, 16 2011 @ 01:42 PM
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The bums that are, and were in government should be the ones to lose their pensions! No more pensions, no more free gas when they are in office, payroll cuts, the works. It's their damn fault, let them pay for it first!



posted on May, 16 2011 @ 01:53 PM
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Originally posted by Skerrako
Here comes the austerity

Second


But... but... I thought Obama said that spending was the way to go... He ridiculed us Europeans for implementing austerity measures.



posted on May, 16 2011 @ 01:57 PM
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The government should stop spending money it does not earn. Stealing it from people isn't earning it, it is theft though.



posted on May, 16 2011 @ 02:17 PM
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reply to post by DaddyBare
 


If it has hit the limit, this means no more investing in the US government.

Its not simply an issue of borrowing, the US government depends on constant investment, not just from places like China and Japan, but Americans. American mutual funds, investors, and the grandfather who buys a savings bond for his grandson. We actually invest more than China does in our country.

Now where is the US going to get enough money to pay off the securities that many of us have, plus still function?

This has the makings of a huge potential mess and there will be no one to bail us out.

So America how many of you are ready to forgive the debt the US government owes you for bonds and securities? How many will be willing to give up their IRAs and 401Ks?


edit on 16/5/11 by MikeboydUS because: to



posted on May, 16 2011 @ 02:26 PM
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reply to post by MikeboydUS
 


It's been foreseen...
Japan, the second-largest holder in US treasuries, (After China) increased its holdings by $17.6 billion to $907.9 billion in March from $890.3 billion in February. All in an effort to shore up the American economy, but Hong Kong, counted separately from China, reduced its holdings by $2.5 billion to $122.1 billion in March from $124.6 billion in February. in other words their bailing out... and so are a lot of other investors...

the news didnt rattle the markets... oh know, they've seen this coming for a very long time



posted on May, 16 2011 @ 02:34 PM
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reply to post by Mdv2
 


Obama has been on a tear, spending and promising money we simply do not have.
A while back (during the last round of bailouts I think) I read that Obama has promised more money than was in circulation.

For those that don't fully understand the gravity of that, let me put it to you another way.

When a company, or a person, owes more than they have, they're broke.


Raising the cap and borrowing more will only exacerbate the situation. Printing more money will just create inflationary issues.

We're screwed and the only way to get us in check is to costs and raise taxes and here's how it will work without causing riots in the streets.

1. eliminate the tax breaks and loopholes that allow companies like Exxon to pay no tax.
2. create a tax on salaries over $10,000,000 and a bonus tax for excessive bonuses.
3. cut spending, specifically, pay cuts for all the (insert expletive) in government that brought about this mess.
4. Start tagging the big banks with fines for the improprieties committed. Goldman Sachs, you're first in line.
5. Give tax breaks to companies who operate entirely within the united states (exporting product is ok). This will create hiring which will result in more income taxes collected.



posted on May, 16 2011 @ 02:36 PM
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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????


The US Dollar is an IOU, it is just a piece of paper the FED says is worth something. Hence "Federal Reserve Note"! Also the FED is no way part of US government either, it is a private corporation.


The debt ceiling has been raised 10 times in the last ten years so it's nothing new. It's just going to add more inflation and poverty to create a greater reliance on the federal government.
edit on 16-5-2011 by IncognitoGhostman because: (no reason given)



posted on May, 16 2011 @ 02:40 PM
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reply to post by DaddyBare
 


In the greater scheme of things, $2 billion is peanuts.

US insurance companies control over $200 billion. US banks have around $300 billion. State and local governments hold over $500 billion. Mutual funds hold over $600 billion. Pensions hold over $700 billion. General investors hold over $1.4 trillion. Lastly the Federal Reserve has around $6 trillion of our debt. All together: Thats almost $10 trillion, the vast majority of all of our debt and we owe it to ourselves. The only way out of this is for us to forgive some of it.

I want to know who is going to forgive debt. I would bet state and local governments will be among the first.
edit on 16/5/11 by MikeboydUS because: to



posted on May, 16 2011 @ 03:04 PM
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reply to post by MikeboydUS
 


For those interesting in the ever-changing numbers.....US Debt Clock



posted on May, 16 2011 @ 03:35 PM
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We all know the whole system doesn't work, the way they have it set up with the Federal Reserve.


Just crash it already, so we can start over. They are just delaying the inevitable and they know it.



posted on May, 16 2011 @ 03:52 PM
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reply to post by bsbray11
 


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.

Then there are the poor and imporverished who depend on foodstamps and welfare. Their handouts would be gone, which means a whole bunch of angry hungry people.

You want to see the country burn down? Thats what will happen. People will go out in the streets and riot. They will loot and vandalize until they are content. Mobs will form and they will attack and kill everyone they blame for the mess. Demogogues will take advantage of the chaos and rise to power.

The system has to change with a gradual transition.



posted on May, 16 2011 @ 04:43 PM
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Originally posted by MikeboydUS
We can't just hit reset if they crash the system.


Of course not, but you think we can't come back from it? You really think an economic collapse is going to be the end of civilization? I see it as an opportunity to finally fix something that has been broken for decades.

You know, all those numbers they make up, they really are just making up, charging interest on money they loan out but never had in the first place (banks are allowed to loan out something like 8-10 times more money than they actually have, AND charge interest on it). It's all imaginary. When we reset trade to being based on something tangible and productive, then we will be getting somewhere. Until then they are artificially forcing masses of people to stay poor while the rich are just getting exponentially richer, bankers awarding themselves huge bonuses with "stimulus money" and all kinds of corrupt nonsense, which is sadly nothing new.


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.


There will have to be another system created to take care of them. The system is going to crash anyway. Economists have known the Federal Reserve system itself automatically creates runaway inflation for decades. There is no way around when, like I said, they are charging interest on money that never existed in the first place. They are literally creating a vacuum where the only "fix" is printing more worthless money and causing inflation.


You want to see the country burn down? Thats what will happen.


And that's what's going to happen. If you think the economy is just going to keep chugging along like it always has without a fundamental change in practices, you are living in a fantasy world. Yes, it is bad. We have only ourselves to blame. At least I am taking responsibility and looking forward to the opportunity to fix it.


The system has to change with a gradual transition.


It would be nice, but unfortunately I think all the stalling for time and trying to offer temporary remedies has only allowed the crooks perpetuating this whole scheme to take further advantage of it. Just look at the "bail outs" that the banks got. There is not going to be an end to this until there is a DRAMATIC change, and if we aren't vigilant enough, there may not be any real change from what we have now, even then.


Bankers always bottom out the system and cause depression, which is always disastrous, in order to create a prime opportunity to seize more assets at ridiculously low prices. This has been going on for hundreds of years. The financial disaster associated with the battle of Waterloo was an example of this. The next time they do this, we have to be aware of what is going on and prevent them from re-instituting the same form of corrupt practices. This will only happen when enough people are made aware of the situation, and actively do something to keep the bankers currently in power from perpetuating this racket. Order really does come from chaos, but it works both ways, so it can benefit us or it can benefit them. That's what we are looking at. The system we are riding on right now, is beyond hope of repair. The whole thing is fundamentally flawed from the base up. The Federal Reserve itself must be abolished.


When can the Federal Reserve finally be abolished?

When the average American is no longer in the comfortably numb position of sitting back and just watching American Idol, like a poster above said. It's going to take a real wake up call here.
edit on 16-5-2011 by bsbray11 because: (no reason given)



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