"Just imagine an undisciplined out-of-control spender whose credit limit has just been extended. In other words, they can continue overspending without any accountability. That “they” is the U.S. government."
It’s been almost a week since Congress reached a temporary deal to suspend the U.S. government’s debt ceiling and the Treasury department has already wasted no time by adding another $375 billion in new debt."
Suspension of a cap on U.S. debt, which was previously fixed at $16.69 trillion, means the Treasury department, headed by Jack Lew, can effectively spend whatever amount of money it needs or wants."
How much debt can the U.S. government rack up by the next debt ceiling deadline on Feb. 7, 2014? At the current spending pace of $375 billion per week, U.S. public debt would reach $22.70 trillion."
"When you are the largest economy in the world, when you are the safe haven in all circumstances, as has been the case, you can't go into that creative accounting business," said International Monetary Fund Managing Director Christine Lagarde in an interview with NBC News' Meet the Press."
What does the bond market have to say about this?"
After reaching a yearly high of 2.97%, the yield on 10-year U.S. Treasuries (NYSEARCA:IEF) has since fallen by 12.5%. Put another way, the bond market is saying that it doesn’t care about the fiscal realities of the U.S. government’s unmanageable debt load."
etfguide
17 comments:
The new debt is actually old debt borrowed from other government departments, now being repaid by issuing public debt.
It happens every debt ceiling. The debt held by the public suddently stops rising as needs are met by borrowing from government agencies instead.
The Federal Government can't get over, can't get along with over 2 trillion dollars of revenue?
Unbelievable.
So... I'm in the room that the Association of Non-Traditional Students uses and I hear my nemisis saying (and he always speaks louder when the subject is politics) something about how clever "this" is and how he'd like to print out a bunch of copies for those stupid Tea Party people who think they understand economics because, because it's *government* all that has to happen is for us to inflate our money supply and *presto!* we can now pay all of our bills, money problem is gone.
Stupid Tea Party!
Sure, this would spell a disaster to anyone else, to *anyone* else, but it's *government* and *government* is totally different when it comes to money.
Dr. John is an 81 year old medical doctor who spends his retirement auditing interesting courses. David (the louder-means-I'm-more-right idiot) says something to him about what he'd said and Dr. John says... "I always *listen* to you, David. I listen to everything you say."
Far more gracious than I'm inclined to be.
They made a rather large extrapolation error in assuming the debt would grow by $375 Billion each week.
Public debt will reach 22 trillion, although not by Feb 2014. It's inevitable when governed by a group that believes all economic woes can be solved with more government spending.
The payments will come due as (1) our population ages and tries claim services based on that savings, which will bid up prices, and (2) foreign debtholders respon to item 1 by demanding more interest for lower holdings.
What could go wrong?
Barry has to spend us so far into debt we can never get out before the Democrats impeach him just out of self-defense.
Nothing to fear here, we now have a Treasury Secretary that has less accounting background than many of the commenters here, and a President who has none.
Yet, both say (WSJ and Forbes) that the increase in the debt ceiling does not mean more spending, it merely means paying for what we've already spent. Both Lew and Obama have said this over and over.
Think about what that statement says. Consider the fact that technically and legally we breached the debt ceiling in January 2013. But, by "extraordinary measures" we've managed to push the drop dead date to 17 October or there abouts. Total nonsense. Harry Potter accounting at its finest.
Both Lew and Obama are saying very simply that we must raise the ceiling to pay for past obligations...that they've already spent too much. They are demanding we play catch-up for prior crimes. Period.
This is how we run our country today, without budgets, just executive whim.
AprilApple said ...
... they are turning the US into Detroit.
Actually far far worse than that...Detroit can't print money. :)
I thought it was surreal when I read that the United States might end up paying off its debt by ceding Alaska to China. Now I'm not so sure it won't happen.
I thought it was surreal when I read that the United States might end up paying off its debt by ceding Alaska to China. Now I'm not so sure it won't happen.
Probably not Alaska. Probably Taiwan, plus a player to be named later.
Probably Taiwan, plus a player to be named later.
They're so screwed. We'll give them Blaine Gabbert, and then what'll they do? Bwahahahaha!
Man, I'm telling you the collapse is going to be very bad. This cannot be maintained for much longer.
Someone pointed out a few weeks back that our tax ceiling is what will put the brakes on our debt ceiling.
Methadras said:
"Man, I'm telling you the collapse is going to be very bad. This cannot be maintained for much longer."
Yeah and the fing libruls will act all shocked and claim they had never heard any warnings about it.
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