Posted on 05/12/2015 1:12:16 PM PDT by Citizen Zed
The Federal Reserve drew up extensive plans for handling a U.S. debt default that included scheduling deferred payments and lending cash to investors, according to a lawmaker who cited Fed documents.
America courted disaster in 2011 and 2013 when political fights over the national debt nearly left the federal government unable to pay its bills.
Analysts and officials warned that missing payments could lead to economic calamity, and details have only slowly emerged over how financial officials braced for the unthinkable.
In a June 2014 letter to Treasury Secretary Jack Lew seen by Reuters on Monday, Republican Representative Jeb Hensarling of Texas said his staff had reviewed the Fed's unclassified plans for how to handle a default. (http://bit.ly/1GZDmKo)
The plans included scheduling new payment dates for defaulted securities, Hensarling said in the letter which was also signed by Republican Representative Patrick McHenry of North Carolina.
The New York Fed, which carries out the will of the Fed in financial markets, would also conduct "business as usual" with regard to accepting Treasury securities as collateral, according to the letter.
The New York Fed declined to comment.
The plans continue to be relevant to investors because debt ceiling debates have become a perennial danger from Washington.
The Treasury is currently scraping up against an $18.1 trillion borrowing cap, and the Congressional Budget Office estimates the government could struggle to pay bills by October or November if Congress and the White House do not agree to lift the cap.
Debt defaults in other countries have triggered financial crises.
(Excerpt) Read more at mobile.reuters.com ...
Only will be a crisis if a Republican ever wins the white house again.
Maybe a default might be reason enough to impeach Obama
What Good Can a Handgun Do Against an Army.....?
http://www.freerepublic.com/focus/f-chat/2312894/posts
You’re exactly right. The crisis is being postponed until a Republican is in power. Its all political IMO. The “mark” in the case is the GOP. They’re the only ones who don’t know they’re being set up.
Always be prepared.
As if it is a completely foreign thing to them to cut back on government and to stop these Chamber of Communism jerks from using the taxpayer as their unlimited credit card. I’d like to see that floating bar/yacht they apparently have for making their drunken backroom deals blown up in the middle of Chesapeake Harbor or wherever it is for starters.
America courted disaster in 2011 and 2013 when political fights over the national debt nearly left the federal government unable to pay its bills. ///
NO. America courted disaster when it started deficit spending like drunken sailors. And like Reagan said “that’s an insult to sailors!”
and no end in sight for at least, with best estimates, 10 years? geez.
Won’t happen. Republicans have “helped” to build this unsustainable debt along with Democrats. Yes, Obama has doubled the debt but Republicans have gone along with it so they will never attempt impeachment.
Emergency plan: Operation Jade Helm.
BRICS Post
China April foreign trade drops 10.9%
May 8, 2015
http://thebricspost.com/china-april-foreign-trade-drops-10-9/#.VVJf7P9_k5t
U.S. Economy Collapsing Faster Than In 2008 – UPDATED by The Daily Coin · May 11, 2015 - (References Baltic Dry Index and the Chinese Container Volume index) See more at: http://thedailycoin.org/?p=28550#sthash.ih4jpmcr.DviMoCiT.dpuf
https://www.youtube.com/watch?v=_yJQjhsiYPQ
5/11/2015
Obama just made a quiet deal to sell nuke and stealth tech to China
http://osnetdaily.com/2015/05/obama-just-made-a-quiet-deal-to-sell-nuke-and-stealth-tech-to-china/
When the dollar is worthless, what good is lending cash?
Hmmm....I’m confused....looks to me like the PLAN IS to DEFAULT!
This is bullsh!t. The Feds take in $250B/month. Servicing the debt is a tiny part of that. It will only default if they decide to default.
>>You’re exactly right. The crisis is being postponed until a Republican is in power.
That’s why the GOP tries so hard to lose. The stage is set, but the last phase of Cloward-Piven needs to happen during a Republican administration so the Progs can “save the country” with communism.
The only way we can pay off these humongous debt is to get rid of 3/4 of all these ALPHABET GOVERNMENT AGENCIES, and allow us to drill and export our oil, gas and coal. I will guarantee you, that within a few years, all our debts will be paid off. And after that, keep these bureaucrats unemployed by the government.
“Default” will be a ruse to seize out 401 k assets and replace them with government backed paper...in other words worthless...
let me guess.... if the US govt defaults, the fed’s response will be to ... print more money.
The Federal Reserve is the foundation of Progressive government.
It ensures there is always enough money, debt and fake interest rates to keep big government and its social-engineering schemes running.
Conservatives will lose ground steadily on economic and social issues as long as this continues.
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