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There Is A Legal Limit To The Amount Of Debt The Us Govt Can Have

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http://uk.finance.yahoo.com/news/Geithner-says-U-S-hit-debt-reuters_molt-2422600005.html?x=0

Well I never knew that.

The interesting thing is that the republicans now control the house whilst the democrats the senate, so Obama can not rubberstamp an increase. Also a lot of tea partiers got elected recently on a reduce the deficeit/debt ticket so they would vote again.

Watch out for a load more porkbarrel politics and hence more wasteful spending.

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http://uk.finance.ya...600005.html?x=0

Well I never knew that.

The interesting thing is that the republicans now control the house whilst the democrats the senate, so Obama can not rubberstamp an increase. Also a lot of tea partiers got elected recently on a reduce the deficeit/debt ticket so they would vote again.

Watch out for a load more porkbarrel politics and hence more wasteful spending.

"Print me $2 trillion or the world gets it" insists sociopathic villain, while stroking his cat

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http://uk.finance.yahoo.com/news/Geithner-says-U-S-hit-debt-reuters_molt-2422600005.html?x=0

Well I never knew that.

The interesting thing is that the republicans now control the house whilst the democrats the senate, so Obama can not rubberstamp an increase. Also a lot of tea partiers got elected recently on a reduce the deficeit/debt ticket so they would vote again.

Watch out for a load more porkbarrel politics and hence more wasteful spending.

It was tried in circa 1994-95 by the republicans with their 'Contract with America' thing. Funny enough, the moment the deficit was (briefly) brought down to zero and a first bit of debt repayment started, GW Bush got in and started cutting taxes and spending like a drunken sailor.

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It might be other countries as well. Poland has a constitutional limit of 55% debt to GDP. They have been cutting and fiddling to make sure that the limit isn't hit as the consequences would be serious.

This may have something to do with the Polish Finance minister, who is a British born Pole and a Professor at LSE. He actually knows what he's talking about

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It was tried in circa 1994-95 by the republicans with their 'Contract with America' thing. Funny enough, the moment the deficit was (briefly) brought down to zero and a first bit of debt repayment started, GW Bush got in and started cutting taxes and spending like a drunken sailor.

I'm sure I read somewhere that a fundamental part of neo-conservative strategy (I think there is a policy document) was that the government should not be afraid of running up a budget deficit (or worded similar).

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pretty sure they had to raise the limit in 2008, now theyve hit the new limit.

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It's the debt, STUPID!

Notice how there is no plan to ever pay it off.

Who's for some long-term Government DEBT?? :ph34r:

+1

from "The New Reublic": Another take...

http://www.tnr.com/a...licans-disaster

"The debt ceiling does exactly what it sounds like it does: It caps the total amount of money the government is allowed to owe. Because the government keeps running deficits, it keeps bumping up against it, and Congress then has to increase the limit to keep the government going. Right now, the national debt stands only $400 billion short of the $14.3 trillion ceiling, which means that some time in the next few months Congress will need to vote to raise it.

It’s a safe bet that most politicians would be extremely reluctant to cast such a vote. Deficit reduction was a major component of the Republicans’ battle cry this past electoral season, and Democrats are no more likely to embrace a measure that explicitly allows for more debt. But it’s a necessary evil: Failure to raise the ceiling could lead to full-fledged U.S. default—that is, the inability to make scheduled interest payments on existing Treasury bonds and other government debts.

Recent history provides a sense of just how scary this would be. “The reason the markets calmed down [during the financial crisis] is that we took [the banks’] toxic assets and handed the financial institutions Treasurys,” says Kevin Hassett, a scholar at the American Enterprise Institute. “If we’re in a default situation, the Treasurys themselves are the toxic assets, and it’s not clear what we can hand anybody to calm them down.” Banks and countries like China would view American debt as a severe liability, and markets would be thrown into chaos. Admittedly, this scenario is unlikely, since the Treasury Department can ward off default for months by taking extreme steps, such as raiding Social Security or civil-service pensions. But even if we don’t default, a protracted failure to raise the debt ceiling risks other dire economic consequences by making it look like the United States is ungovernable and a bad place to invest."

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It’s a safe bet that most politicians would be extremely reluctant to cast such a vote. Deficit reduction was a major component of the Republicans’ battle cry this past electoral season, and Democrats are no more likely to embrace a measure that explicitly allows for more debt. But it’s a necessary evil: Failure to raise the ceiling could lead to full-fledged U.S. default—that is, the inability to make scheduled interest payments on existing Treasury bonds and other government debts.

I'll bet you 10 grams of silver they will vote for it and the debt ceiling will be increased, I'll go double with you too that it'll get bumped up again.

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I'm sure I read somewhere that a fundamental part of neo-conservative strategy (I think there is a policy document) was that the government should not be afraid of running up a budget deficit (or worded similar).

Think it is called the double santa claus effect - they promise growth through tax cuts - the tax cuts increase the defecit and they increase spending which increases the defecit.

They can then make the opposition look like bad guys and still get what they want (tax cuts for their supporters and billions in government contracts for their friends companies) whilst destroting the normal people.

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I'm sure I read somewhere that a fundamental part of neo-conservative strategy (I think there is a policy document) was that the government should not be afraid of running up a budget deficit (or worded similar).

Actually it was in Wikipedia -

"Irving Kristol states that neocons are more relaxed about budget deficits and tend to reject the Hayekian notion that the growth of government influence on society and public welfare is "the road to serfdom". Indeed, to safeguard democracy, government intervention and budget deficits may sometimes be necessary, Kristol argues."

The source article -

http://www.weeklystandard.com/Content/Public/Articles/000/000/003/000tzmlw.asp?page=2

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saw this earlier today on bloomberg, aparently the shtf on march 31st. the commentaters on there stated this was when the printing will realy occur, not in may when forcasts say it will run outta money.

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The U.S. Congress has raised the federal debt ceiling six times in just the past three years, so you would think that raising it again would not be that big of a deal for our debt-addicted politicians. But this past November a significant number of Tea Party candidates were elected to the U.S. House of Representatives, and they are eager to prove that they are serious about fiscal responsibility.

So exactly what is the debt ceiling? Well, it is an arbitrary limit on U.S. government debt that is set by the U.S. Congress. The original idea of the debt ceiling was that it would keep U.S. government debt from getting out of control, but obviously that has not happened. Whenever we have started getting close to the debt ceiling Congress has always raised it. It has been raised ten different times since 2001. Now it is time to raise it again, and if it does not get raised the U.S. government could actually start defaulting on its obligations.

endoftheamericandream

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saw this earlier today on bloomberg, aparently the shtf on march 31st. the commentaters on there stated this was when the printing will realy occur, not in may when forcasts say it will run outta money.

What's so special about the end of March, is that when it will run out of money or is something else occurring on this date?

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Is the vote just an excuse to pass out brown envelopes/favours to secure votes? They always pass the new figure

They should pass it with a lower increase than usual then they could have 2 or 3 votes a year and go to the trough more often.

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I'll bet you 10 grams of silver they will vote for it and the debt ceiling will be increased, I'll go double with you too that it'll get bumped up again.

Unsurprisingly, I won't take the bet!

But if it was to be settled in 2 or 3 years, we'd be better to make the stake something more useful than silver. Y'know, like toilet paper, bottled water, shotgun shells... :)

EDIT: gramma

Edited by dryrot

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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