Debt Limit Analysis: Bipartisan Policy Center

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James48843 said:
Yeh? Then they sure better drink up quick, because after Monday, I will no longer be able to pick up the tab, because my paychecks begin bouncing on Tuesday.



(I will gladly pay you TUESDAY, for a Hambuger today....)
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Then you should have stayed home and saved your money, or spent it in OUR economy..
 
Buster said:
Tell them, The next round is on you..
20100617_skorea_560x375.jpg
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Yeh? Then they sure better drink up quick, because after Monday, I will no longer be able to pick up the tab, because my paychecks begin bouncing on Tuesday.



(I will gladly pay you TUESDAY, for a Hambuger today....)

 
James48843 said:
ㅑ ㅓㅕㄴㅅ 네둣 솓 ㅇ묘 ㅑㅜ ㅡㄷㄷ샤ㅜㅎ ㄴ쟈소


I just spent the day in meetings with some South Korean government officials, and they are asking me what on earth is going on. They are comparing U.S. debt disfunction with the breakup of the Soviet Union.

Anyone care to offer what I should tell them?
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Tell them, The next round is on you..

20100617_skorea_560x375.jpg
 
ㅑ ㅓㅕㄴㅅ 네둣 솓 ㅇ묘 ㅑㅜ ㅡㄷㄷ샤ㅜㅎ ㄴ쟈소


I just spent the day in meetings with some South Korean government officials, and they are asking me what on earth is going on. They are comparing U.S. debt disfunction with the breakup of the Soviet Union.

Anyone care to offer what I should tell them?
 
Boghie said:
SilverBird,

Many folks are hearing only what they want to hear from the Debt Vigilantes.

Yes, they are stating flat out that not extending the debt ceiling would spook the bond (and some say equity) markets. However, they ALSO always state that the Federal Gubmint must ALSO get its debt under control. They will NOT buy the debt the Gubmint is selling - have you seen the uptick in the 'G Fund' rates?

We have to raise the debt ceiling - but, more importantly, we can no longer spend 40% more than revenue. That has to stop NOW.
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Spot On!
Why Wall Street doesn't seem worried about default

The CEO of a big bank says a U.S. default could be catastrophic for the economy. The head of the Federal Reserve warns of chaos. And a credit rating agency threatens to take away the country's coveted triple-A status.The response on Wall Street: So what?​

http://news.yahoo.com/why-wall-street-doesnt-seem-worried-default-210513921.html
 
Yup, the Gubmint has been 'investing' your pension - in much the same fashion that they have been 'investing' the 12% of gross pay into Social Security.
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Based on reports from previous administrations, it is reasonable to conclude that there is very little money, if any, in a retirement fund for future retirement payments to be paid to federal employees. As with Social Security, the fund is essentially full of "IOU's" from the government as the money is spent as it comes in to pay for current government expenses.

...

Bluntly, the money contributed by federal employees has already been spent. Chances are, if the administration decides not to issue Social Security payments, federal retirees won't get paid either. Paying former federal employees while not issuing Social Security checks to millions of Americans would be unpopular.​
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Ouch, this is going to hurt.

A lot...
 
By the way...

Has anyone noticed that the Spender in Chief has actually not spent as much since the 'Debt Increase Crisis' started. Too funny, since conservatives started holding him to some form of budget (since no budget has been passed for over two years), the Administration has trimmed its spending in both May and June. I don't think this Administration has never done that.

This Administration has trimmed $77 Billion from last year's May and June spending. And, they were on their way to exceeding their glorious FY2010 expenditures. Wow, that projects to a $460 Billion dollar annualized spending cut.

What was the trimmed spending.

Anyone miss it.

Fat...
 
SilverBird,

Many folks are hearing only what they want to hear from the Debt Vigilantes.

Yes, they are stating flat out that not extending the debt ceiling would spook the bond (and some say equity) markets. However, they ALSO always state that the Federal Gubmint must ALSO get its debt under control. They will NOT buy the debt the Gubmint is selling - have you seen the uptick in the 'G Fund' rates?

We have to raise the debt ceiling - but, more importantly, we can no longer spend 40% more than revenue. That has to stop NOW.
 
[sarcasm] If your credit card is maxed, all you have to do is get the limit raised and you're not maxed any more. [/sarcasm]
 
Yes, it's better to own up to your debt. But right now what we have is, credit card at max, making payments by borrowing, haven't made a deal with the creditors, no sign of more income, and about to run out of credit. So it's not a matter of choosing one over the other, what we have right now is the worst of both worlds. So we are talking about a potential two major strikes on that credit score.
 
burrocrat said:
In my experience, you'll do better if you come clean with the creditors and make a realistic and sustainable plan rather than just tell them don't worry the check's in the mail because I'm going to go borrow some more money to pay you. Which of those strategies would you put more trust in?

That's the part that confuses me.
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Me too Burro, The strange thing is that Joe citizen has figured it out over the last three years. In hard times you cut back on spending and pay your debt down as much as possible. Which most of us have done. We, the not so smart ones that need the government to take care of us, are in many cases better off than before the crisis (assuming we still have a job). While the all-knowing politicians decided it was a good thing to go crazy spending and throwing money at every problem and even at our enemies. Yep that'll fix the problem all right! We'll borrow and spend our way out of this crisis. Have they lost their minds?
 
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