U.S. to Hit Debt Limit 12/31/12, This is different from the “Fiscal Cliff”

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posted on Dec, 30 2012 @ 04:15 PM
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And sadly, Obama's interview in Meet Te Press makes me convinced that my opinion may be spot on

www.zerohedge.com...

Full interview available at link




posted on Dec, 30 2012 @ 05:21 PM
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The debt is a JOKE because the FED which is a cartel of private banks, creates and prints money out of thin air and then charges the U.S. Government and you and me interest. The system is a SCAM. Time to tell the BAnksters to f$ch off!



posted on Dec, 31 2012 @ 12:56 AM
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reply to post by redhatty
 

Sure it is the US Treasury that does that borrowing and not the President. But the Treasury is part of the executive wing headed by the President.



posted on Dec, 31 2012 @ 07:22 AM
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reply to post by Observor
 


Yes it is, mind you, it's Congress that allocates what money will be spent & where, then the Treasury is left to find a way to come up with the money - usually through tax revenues & the sale of government bonds.

Just as Congress is supposed to make a federal budget each & every year, but they haven't had one since April 29, 2009

Also, the Senate has not approved a single Appropriations Bill. Senate Majority Leader Harry Reid, D-Nev., who decides which bills will be considered, told reporters on July 10, 2012, that no spending bills were likely to be approved this year because of an ongoing dispute with House Republicans over how much the federal government should spend.

So our country has been running on "Stop Gap" or continuing resolution measures since 2010. We have hit the debt limit (ceiling) today. As the GAO says, "the debt limit does not control or limit the ability of the federal government to run deficits or incur obligations. Rather, it is a limit on the ability to pay obligations already incurred."

But, going over the fiscal cliff, which means we all pay higher taxes, could lower the increases in our debt by about $7 Trillion, so yes, recession, but, after that our spending to GDP ratio could be reduced to 22.5% or there abouts.

So if Congress does NOTHING, we have forced austerity, but that could be the best thing to happen, as we will be forced to reduce waste, redundant government jobs & other spending (including "entitlement programs") but financially our country would be stronger for it in the end.

So you see, it is more dependent on Congress (both houses) to come to an agreement than it ever is for Obama. The only power Obama has is to approve or veto the bills that Congress sends to him. He cannot create new spending or revenue by Executive Order, all he can do is consult with the Sec. of Treas on how to come up with the money already approved/allocated.

If Congress does nothing today or in the next couple days, the US is propelled into higher taxes along with forced austerity (not really a bad thing, although it won't be fun) and Obama hold no fault for it (and he knows this).

The only way Obama can look bad in all this is if a reasonable bill is passed to him & he vetoes it



posted on Dec, 31 2012 @ 08:31 AM
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(not really a bad thing, although it won't be fun) and Obama hold no fault for it (and he knows this).
reply to post by redhatty
 


Judging from all the frantic last minute political posturing by both parties this deadline is a lot more important than you would think? Its like they got caught and they know someone is going to get punished.

The politicians inside the loop are acting like this will be the Koolaid of the century for their party rather than just the usual arbitrary year end fiscal event which in the past has been easily rectified through new spending legislation.

Perhaps the Federal reserve or some other PTB really did signal the imminent execution of an unpopular austerity plan that would be remembered in the minds of the voting base?

Tough times have brought about some of the best remembered legislative history so at the very least maybe we will be witness to some really educational government quid pro quo this spring into the summer. Obama should be distancing himself from the short term blame game which is lost, and start using his lawyer skills to consider long term legislative solutions that would appear more constructive.



posted on Dec, 31 2012 @ 12:46 PM
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Originally posted by Cauliflower
Judging from all the frantic last minute political posturing by both parties this deadline is a lot more important than you would think? Its like they got caught and they know someone is going to get punished.

The politicians inside the loop are acting like this will be the Koolaid of the century for their party rather than just the usual arbitrary year end fiscal event which in the past has been easily rectified through new spending legislation.


Kabuki theater, seriously. Although they know the populace will be pissed when all the taxes are felt, from the expiring cuts to Obamacare, folks won't be happy with taking home only about half of what they earn.


Perhaps the Federal reserve or some other PTB really did signal the imminent execution of an unpopular austerity plan that would be remembered in the minds of the voting base?


Eventually the austerity WILL happen here, we can take our lumps now, or we can kick the can & it will just be exponentially worse when there's no more road for that can to travel/


Tough times have brought about some of the best remembered legislative history so at the very least maybe we will be witness to some really educational government quid pro quo this spring into the summer. Obama should be distancing himself from the short term blame game which is lost, and start using his lawyer skills to consider long term legislative solutions that would appear more constructive.


Obama... Lawyer skills??? PLEASE!! Name ONE case he ever litigated. Obama was a community organizer, not a lawyer, regardless of license.





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