Debt Limit Analysis: Bipartisan Policy Center

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Silverbird said:
If I ran up my credit card to the limit and ddin't make my house and auto payment, I don't expect my credit score to stay over 700.
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What do you think your credit score might go to if you keep paying the house and auto payments but never pay the credit card? And how long do you expect Credit Card Peter to keep loaning you money to pay Home/Auto Paul (plus Peter's interest)?

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.
 
The issue is:
If you reach your credit limit so now you don't have the money to pay the bills, your credit score will go down.
That sounds logical to me. If I ran up my credit card to the limit and ddin't make my house and auto payment, I don't expect my credit score to stay over 700.
 
Due to Mgt holding back over 20%+ of our planned spending until the budget passed, and then the trickle down process, we are now in what I call "Just buy by Oct 1" stupid mode. So much for speaking at seminars, there's no way to schedule these things so quickly. Too bad we can't save it for pay in case of an out of money error. Of course, haven't heard a thing about next year's budget, so trying to buy a year and a quarter's worth of stuff in 3 months....
 
Failure to Raise U.S. Debt Cap Seen Idling 800,000 Federal Workers

June 28, 2011, 3:07 PM EDT
More From Businessweek

By Heidi Przybyla and Cheyenne Hopkins

June 28 (Bloomberg) -- The U.S. government wouldn’t be able to fund about 50 percent of its obligations and would have to furlough about 800,000 federal workers if Congress fails to approve an increase in the $14.3 trillion debt ceiling, a coalition of former budget officials says.

Sometime in the first half of August, no funding would be available for the Departments of Veterans Affairs, Education, and Housing and Urban Development, as well as unemployment insurance and Internal Revenue Service refunds, according to a report by the Bipartisan Policy Center in Washington.

“The reality would be chaotic,” Jay Powell, the author of the study and a former Treasury undersecretary under President George H.W. Bush, said at a news conference when the report was released. “Treasury would be picking winners and losers.”

More:
http://www.businessweek.com/news/20...u-s-debt-cap-seen-idling-800-000-workers.html
 
Current travel restrictions in my agency are the strictest they've been in my 20+year career, out of town multi-month details are being cut short-to be finished longdistance from home unit, people allowed to go on extended details are only being allowed under strictest of requirements for absolutely minimizing travel costs. Early outs are being offered with no buyout incentives as of this past week-time-limited offer. Havent seen earlyout authority since mid90s.
 
Silverbird,

We will probably buy the months of August and September with spending reductions in May, June, and July. At least I hope 'The Economic Black Swan' is doing this - see the May MTS Number where Federal spending was $50 Billion less than last year.

If you study the PowerPoint presentation you see something very scarey. And, it is not what the presenters are presenting - at least directly.

Here it is...

We are rolling debt payment into new debt. Constantly. Just the way things are done.

Folks, that has gotta stop. We either pay or cut. That is the only choice.
 
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