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Debt Crisis: Republicans Scramble To Rewrite Plan Following Figures Bungle

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http://www.guardian.co.uk/business/2011/jul/27/debt-crisis-republicans-plan-bungle

The US debt crisis has escalated after Republicans were forced to rewrite their proposal to lift the debt ceiling, because they miscalculated how much the original plan would cut spending.

In an embarrassing development for John Boehner, the Republican Congress speaker, the Congressional Budget Office (CBO) ruled on Tuesday night that his bill would have only cut spending by $850bn (£517bn)over the next decade, not the $1.2tn he had aimed for. Republicans are now racing to rewrite the legislation, and have pushed back a congressional vote on the plan from Wednesday to Thursday at the earliest.

Although Boehner was already struggling to find support for his package, the delay increases the risk that Washington will fail to agree a deal to raise the debt ceiling before 2 August, when the federal government is expected to run out of money.

It's at farce level.

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...Although Boehner was already struggling to find support for his package, the delay increases the risk that Washington will fail to agree a deal to raise the debt ceiling before 2 August, when the federal government is expected to run out of money....

It's at farce level.

I think they ran out of money many trillions of dollars ago.

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It's at farce level.

We may, at some point, have to face the prospect that there is no great conspiracy at the top of US government and society to enrich themselves at every one else's expense, but the far worse conclusion that the most powerful nation on this planet - still possessed of sufficient ICBMs to nuke the planet back to the stone age - is rules by a bunch of complete freaking morons.

Luckily, we have Cameron, Osbourne, Miliband and Balls.

Sleep well.

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We may, at some point, have to face the prospect that there is no great conspiracy at the top of US government and society to enrich themselves at every one else's expense, but the far worse conclusion that the most powerful nation on this planet - still possessed of sufficient ICBMs to nuke the planet back to the stone age - is rules by a bunch of complete freaking morons.

Luckily, we have Cameron, Osbourne, Miliband and Balls.

Sleep well.

:(

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850bn in cuts sounds inmpressive...till you realise its over 10 years, thats what, 85bn a year, out of what...1.5trn deficit a year.

Downgrade is imminent.

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Their bank will start giving them £10 a day charges and £25 per letter.

and call them 15 times a day

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Republicans propose cuts, democrate rejects them as too harsh.

Republicans announce they just realised they needed the cuts to be harsher.

Republicans propose harsher cuts.

Now for a game of chicken.

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Republicans propose cuts, democrate rejects them as too harsh.

Republicans announce they just realised they needed the cuts to be harsher.

Republicans propose harsher cuts.

Now for a game of chicken.

You really couldn't make this up. I was confident they'd agree something, but for the first time ... I'm no longer sure.

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Something I have been wondering. How much does america need to pay off on 2nd august? How much of thier overdraft limit have they got left? I'm trying to get am idea of how much economic impact there might be to a default aside from the inevitable downgrade etc.

Also does anybody know what time this payment is due?

It's crazy, if I had an overdraft limit of equal proportion to my income and asked the bank if I could borrow more in order to pay another debt I have a fairly good idea of what they will say!

I really don't understand how the world has not recognised that homeopothy doesn't work. You can't solve a debt problem with more debt!

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You really couldn't make this up. I was confident they'd agree something, but for the first time ... I'm no longer sure.

At first I thought they would. But this is about politics not economics.

To me it boils down to whether Obama thinks there is going to be another big bust before the election. If he believes he can't keep the plates spinning til next November then if he allows the default to take place then he has a chance to blame it all on the Republicans rather than carry the can himself.

To me the Obama spin machine seems more on top of this one. I reckon he will go for the bust and blame the evil rich trying to steal off the poor. The Republicans now are backing themselves into a corner. If they don't stand up and insist on what they think is necessary then they will lose credibility. As the situation goes on to me its looking more and more like both sides will refuse to budge.

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At first I thought they would. But this is about politics not economics.

To me it boils down to whether Obama thinks there is going to be another big bust before the election. If he believes he can't keep the plates spinning til next November then if he allows the default to take place then he has a chance to blame it all on the Republicans rather than carry the can himself.

To me the Obama spin machine seems more on top of this one. I reckon he will go for the bust and blame the evil rich trying to steal off the poor. The Republicans now are backing themselves into a corner. If they don't stand up and insist on what they think is necessary then they will lose credibility. As the situation goes on to me its looking more and more like both sides will refuse to budge.

There's not much difference between economics and politics apart from one likes to pretend it's an exact science.

Although both sides will be betting they can gain the upper hand from a default.

Obama aiming to be hero who rescued the economy and the republicans aiming to blame Obama for the economic collapse.

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We may, at some point, have to face the prospect that there is no great conspiracy at the top of US government and society to enrich themselves at every one else's expense, but the far worse conclusion that the most powerful nation on this planet - still possessed of sufficient ICBMs to nuke the planet back to the stone age - is rules by a bunch of complete freaking morons.

The USA is controlled by a gaggle of vested interests all pulling in different directions. Not so much a snake without a head, more a snake with too many heads- the outcome of putting your government up for sale to the highest bidder.

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Although both sides will be betting they can gain the upper hand from a default.

That's the whole point though. While they are focussing on whether or not they will gain politically or not, they're taking their eyes off the ball wrt figuring out what's best for the economy.

Their strategy isn't based on what ecomomic turmoil will be caused. Just whether or not they get the blame for it. Once they take the default and ensuing turmoil as inevitable and start concentrating their efforts on how to avoid the political fallout that's when you've got to really worry, and it seems like we're very close to that position at the moment.

It's a dangerous game to play.

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  • 343 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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