US teeters towards debt default, cash could run dry by end of Feb.. this stuff never stops !

This is from RT about the new debt limit.. This stuff just seems to never end... How can any country allow itself so much debt much less plan on paying the debt off... When/how will it end ?

On Friday, America’s debt limit extension expires and Congress is expected to renew its legal $16.7 trillion debt cap. If the debt limit isn’t raised, the US could burn through its cash as soon as February 28, Secretary Treasurer Jacob Lew warns.

“Time is short. Congress needs to act to extend the nation’s borrowing authority, and it needs to act now,” Lew told an audience at the Bipartisan Policy Center, a Washington DC think tank.

On Friday, February 7, Congress will vote to increase the statutory debt limit, which will enable the government to pay for spending bills it has already passed.

"Without borrowing authority, at some point very soon, it would not be possible to meet all of the obligations of the federal government," Lew said.

rt.com...

reply to post by 727Sky


Reminds me of the Aerosmith song - it's the same old story, same old song and dance my friend.

There'll be a whole lot of partisan bickering, with each side blaming the other for ruining the country. Then after enough mud has been slung they'll compromise on how to best screw over the American public, the debt ceiling will be raised, stocks will go up, and another manufactured crisis will be averted.

Then it'll be back to business as usual.

reply to post by 727Sky


Its like--- the US is friends with the bank (world's economic system), and so continues to extend its credit card limit over and over and over... soon it will become apparent that there is no intention to pay up and the bank will cut the US off and probably get into trouble itself because of the hole the US created in its internal resources.

Deja Vu

reply to post by 727Sky







And how about these apples ? Going down.............................

I wonder if it being tax season will have any effect on this?

reply to post by 727Sky


but... but...

the last 10 times this happened they said they where pushing it back to fix the problem...

Did.. did they, oh heavens no...

DId they LIE to us?

Say it aint so..

Chickensalad
I wonder if it being tax season will have any effect on this?

yes don't expect a federal refund anytime soon.

Let it crash. Our system was designed to crash from the day it started better for it to happen now instead of letting it keep building up. If our system has to be run on a credit card then it is time to change our system.

reply to post by GoldenObserver


reply to post by Panic2k11


politicalticker.blogs.cnn.com...

President Barack Obama signed into law on Friday a $1.1 trillion spending bill that will fund the government through the end of September.

So I don't get this, only 2 weeks ago they signed this but now they get a new debt ceiling to fight over??

Also the FED got over 4 trillion+ on their books right now and that isn't even counted with the total of (government) debt at all. The FEd buys up bad government debt so the interest on her debt can stay low.
But this game can't go on forever..

But don't worry the US will shove her problems on the rest of the word, so she can pay low interest rates on her debts as long as possible and the US doesn't got a problem at all.

But anyways this train is unstoppable and only going faster, there is no returning, howlong it takes to reach the end, even while the train is going faster each day is not really known though.
Can't be years for sure.

reply to post by 13th Zodiac


It's all fear mongering so they can trot out the tired old line that any delay in the debt ceiling will result in ruin. The moment a deal is struck those numbers will be right back up again.

DirtyD
reply to post by 727Sky

 

Reminds me of the Aerosmith song - it's the same old story, same old song and dance my friend.

There'll be a whole lot of partisan bickering, with each side blaming the other for ruining the country. Then after enough mud has been slung they'll compromise on how to best screw over the American public, the debt ceiling will be raised, stocks will go up, and another manufactured crisis will be averted.

Then it'll be back to business as usual.

How many times does this make? By my count it's the third or fourth time they've done this, then again I may be wrong on the count, lol.

reply to post by DirtyD


Wow! It's like you've seen this story before! Are you psychic or something?

reply to post by Krazysh0t


It's like Groundhog's Day, just the same thing over and over again.

reply to post by DirtyD


Same but it's getting faster and faster.

It's like you got 1 time problem paying some bills, then suddenly you get them almost every day.
Can't go on forever..

Our governments are corrupt. Anyone know where we can find the Rothschild family?

reply to post by 727Sky


Looking in from the outside, it seems like a pretty dumb way to run one of the most historically respected currencies ever devised.

What I really do not understand, is why the only options being seriously discussed, are increasing the debt ceiling again, and again, or defaulting on some payments and debts. This seems ridiculous to me. Surely reducing every thing in the defense budget, bar those monies reserved for equipment and personnel, would help pay something off, surely finding the 2.3 trillion that the pentagon cannot account for would help?

If the US is anything like the UK, there are savings which could be made from its budgets, which have nothing to do with people being made redundant, but to do with re-negotiating badly written contracts, to favour government, and by extension the people of the United States of America! I cannot believe that the entire US is being left with a choice between getting ANOTHER loan, or default. It is utterly impossible that NO other options are available, so why the hell are alternatives not on the table by now? The US benefits from having some of the foremost mathematicians, economists, and market jockeys on the planet, working and living in it. Surely these human resources need putting to better use!

TrueBrit
reply to post by 727Sky

 

Looking in from the outside, it seems like a pretty dumb way to run one of the most historically respected currencies ever devised.

What I really do not understand, is why the only options being seriously discussed, are increasing the debt ceiling again, and again, or defaulting on some payments and debts. This seems ridiculous to me. Surely reducing every thing in the defense budget, bar those monies reserved for equipment and personnel, would help pay something off, surely finding the 2.3 trillion that the pentagon cannot account for would help?

If the US is anything like the UK, there are savings which could be made from its budgets, which have nothing to do with people being made redundant, but to do with re-negotiating badly written contracts, to favour government, and by extension the people of the United States of America! I cannot believe that the entire US is being left with a choice between getting ANOTHER loan, or default. It is utterly impossible that NO other options are available, so why the hell are alternatives not on the table by now? The US benefits from having some of the foremost mathematicians, economists, and market jockeys on the planet, working and living in it. Surely these human resources need putting to better use!

Reminds me about a bank which didn't know what to do with all the money. Buying up company's for the heck of it.
Even small ones, costing only a few milions. They had the ''smartest''/best people working on that project to make sure there where no risk.
To pay those very ''smart'' people they had to pay about 800.000 euro's while the total taking over of that company was only about 5 million (give or take).
That bank took over a company who didn't even earned 1 single euro in all those years (also just loans and good promise).
Later (few years later so even more money spend/debt) on the bank itself got in troubles so that company doesn't even exist anymore.


I knew it when I was in the middle of it, but who would listen to me?


But yea it seems very Obvious that spending on defense is 1 of the biggest problem if not the biggest one which even started this economical disaster I think. But there are people with so much influence which seems to have the biggest voice and they where/are the problem then and now.
Even when proven wrong they can still keep going and going.

reply to post by Plugin


Its seems a huge game of chicken, between the Anglo-American interests (+Japan) and the BRIC growth. It is a long term currency war more than a direct economic match...

reply to post by Panic2k11


Well, there's been 3 dead banksters this week - How does that joke go about lawyers on the bottom of the sea? Apply it to fed reserve banksters - it's a good start.