Debt Limit Analysis: Bipartisan Policy Center

Status
Not open for further replies.
New overnight law. Seize passports of 400 richest Americans and put them under house arrest. Confiscate tomorrow all their assets. Issue them WIC cards. Issue them Medicaid cards. Appoint number two's as in charge of their operations so the workers won't be hurt. Now, how many days are we able to operate? Ok, second tranche takes the number two's. Are we into September yet?

Then again, we could eschew the above philosophy and instead extol the virtues of human ingenuity vice dependence.
http://inhabitat.com/incredible-garbage-city-rises-outside-of-cairo/
 
Show-me said:
I make $50,000 a year, spend $75,000 a year, and have a credit card balance of $175,000. I can not work any more hours than I do now unless I take the money from someone else.

How do I realistically get out of this mess without hurting anyone or stealing the money?
Click to expand...

Well, I was going to suggest filing for bankruptcy, but that ends up hurting the creditors so that won't do.

I guess the only answer is to spend significantly less than you make and hope the payday loan folks will work with you while you make progress on the balance due.
 
I make $50,000 a year, spend $75,000 a year, and have a credit card balance of $175,000. I can not work any more hours than I do now unless I take the money from someone else.

How do I realistically get out of this mess without hurting anyone or stealing the money?
 
This sounds like a fair compromise.

  1. The House has passed a budget.
  2. The Senate must pass a budget.
  3. The President signs that budget.
  4. Congress passes a new debt limit based on that budget.
Simple, eh...

Are we going to have to go through another year without a budget?

And, when the simple annual tasks noted above are completed we start authorizing money using that budget. I don't have a website that tracks authorization. I can see spending month to month, but not authorizations. Authorizations are the name of the game. That is where the bloat starts.
 
When the government had a `shut-down' back in the early '90's, one of my single parent kids was on AL - with no guarentee her job would be there when the faldaraw was over. The local groceries, pharmacies, utilities made sure everyone knew no bank accounts would go into overdraft, had the local federal employees on their minds. The difference today is, most letters to the editor want fed employees to give up their Soc Sec benefits, their medicare, if working pay more in, and want their salaries cut, regardless if (as here) the fed salaries are in competition with the locals as we aren't allowed to `undercut' them - ...
Hopefull the benefits of a pulling together communiity, that has grown into a mega-metropolis since the '90s, is still there. :)
 
James48843 said:
Remember when we used to give food aid to foreign nations?
View attachment 14734
Now China is preparing to send those U.S. Federal Employees that are laid off effective tuesday some aid:
View attachment 14735
Click to expand...
There is probably more guarantee that the U.S. would get any food distributed than those foreign nations did. The Berlin Airlift was probably the last time any US food made it to the intended recipients...
But, there is the chance that it would go to our the Food Banks and you can take your turn registering & getting in line there....
I work there, so don't expect to have to stand in line.... But I still have more than 99.9% of the folks I assist.
 
Remember when we used to give food aid to foreign nations?

4709IR2.jpg




Now China is preparing to send those U.S. Federal Employees that are laid off effective tuesday some aid:

001fd04c63060cd1a73d2c.jpg
 
FireWeatherMet said:
Bipartisan agreement would be 50% spending cuts and 50% revenue.

One party said even 1% revenue would be a non-starter.
All the numbers show there is no way to eliminate the deficit unless you do both.
Unfortunately, some in congress are mathematically challenged.
Click to expand...
By that logic you are saying that one party wants the debt cut via 100% spending cuts, and the other party wants it done via 100% tax increases. Is that the case? (I will join you in not mentioning the parties.)

Unfortunately we are getting a lot of smoke and mirrors in the bills. I heard that the senate bill includes spending cuts that include large cuts in the Afganistan war, which I believe is still going on. Can that be assumed? If the war does not end, we're back where we started.

2 questions (and I am trying to keep this neutral): 1) Why don't democrats want a balanced budget amendment, and why don't republicans want tax loopholes closed? It seems like the perfect opportunity for both.

Ahhh, nevermind. This isn't going to work here. Let's go bug James...

http://www.beltwaytalk.com/forum.php
 
That's it then, we're all welfare babies now, living on the borrow, and the kindness of others.

Too bad the others are bankers.

You get what you pay for.
 
To those who loved the Stimulus Plan and maybe even thought it was too small...

"massive amounts of spending were done in the name of short-term economic stimulus. Forget whether it worked or not – how did this become permanent spending?"
Click to expand...

James, et. al., why has short term stimulus spending become structural spending?

Did the President and Congress who voted for the thing make that clear to the taxpayers?

And, if permanent spending was NOT part of the deal than what is the problem with ending that spending?


To date (June 2011 MTS) we are spending $502 Billion more than we spent by June 2008 (a recession year). This in a period of miniscule inflation. Cut that artifact of Stimulus spending and then let us talk about tax increases. A greatful nation awaits.


By the way, the Treasury is projecting that we will spend $363 Billion more this year than last year. Mr. President, eat your peas...:p


A greatful nation awaits.
 
James48843 said:
They could really use the help.
Click to expand...
This is a spoof site that makes fun of current events. They are usually funny. But, this one is probably what needs to be done! Of course, those overpaid, lazy teachers are part f the problem according to most legislators.

So, ... Things are upside down.
 
Looks like Moody's won't be satisfied with a debt limit increase

They are demanding both a limit increase - since we cannot live without incurring more debt - and a debt reduction plan in excess of what both political parties are squabbling over. They want something in the range of the House Budget Plan - the Ryan plan. That is a debt reduction of $4 - $5 Trillion over ten years. Anything less will result in an AA rating in about three months.

Because the actual report is behind a Moody's paywall I cannot tell if they want our existing debt (~$14 Trillion) to be ~$10 Trillion in ten years or if they are talking about $4 Trillion less than the bloated Obama budget proposal that was defeated 97 - 0 a few months ago. Hopefully the latter because we are broke!!!

Anyway, if we think of this mess as a mortgage here are the numbers:
$16 Trillion
Call it a 30 year loan
Guess at a 4% interest rate

Maps to $76 Billion per month to pay off this mess in 30 years. That is $912 Billion per year.
But, to make it a bit harder, we are spending about $100 Billion more than we take in every month.
Thus, cuts and payoff will require about $180 Billion per month. That is $2,160 per year. Hard, very hard.

Cut spending by 3/4 and increase taxes for the other quarter. Show me the cuts first though. Show me those cuts on day one. I can see you.:p

Untill I see this Administration and this Congress reduce spending dramatically I will not charm my Tea Party friends to accept tax increases - because I DO NOT trust politicians to cut spending. If we don't cut spending than we will hit a true debt ceiling that no politician controls. Then the hard choices will be made - absolutely.
 
Last edited:
Status
Not open for further replies.
Back
Top