Skip to comments.Secretary Geithner Sends Debt Limit Letter to Congress
Posted on 12/26/2012 9:34:07 PM PST by Celerity
Today, Secretary Geithner sent the following letter to Congress regarding the debt limit.
December 26, 2012
The Honorable Harry Reid
United States Senate
Washington, DC 20510
Dear Mr. Leader:
I am writing to inform you that the statutory debt limit will be reached on December 31, 2012, and to notify you that the Treasury Department will shortly begin taking certain extraordinary measures authorized by law to temporarily postpone the date that the United States would otherwise default on its legal obligations.
These extraordinary measures, which are explained in detail in an appendix to this letter, can create approximately $200 billion in headroom under the debt limit. Under normal circumstances, that amount of headroom would last approximately two months. However, given the significant uncertainty that now exists with regard to unresolved tax and spending policies for 2013, it is not possible to predict the effective duration of these measures. At this time, the extent to which the upcoming tax filing season will be delayed as a result of these unresolved policy questions is also uncertain. If left unresolved, the expiring tax provisions and automatic spending cuts, as well as the attendant delays in filing of tax returns, would have the effect of adding some additional time to the duration of the extraordinary measures. Treasury will provide more guidance regarding the expected duration of these measures when the policy outlook becomes clearer.
Timothy F. Geithner
Identical letter sent to:
The Honorable John A. Boehner, Speaker of the House
The Honorable Nancy Pelosi, House Democratic Leader
The Honorable Mitch McConnell, Senate Republican Leader
cc: The Honorable Dave Camp, Chairman, House Committee on Ways and Means
The Honorable Sander M. Levin, Ranking Member, House Committee on Ways and Means
The Honorable Max Baucus, Chairman, Senate Committee on Finance
The Honorable Orrin Hatch, Ranking Member, Senate Committee on Finance
All other Members of the 112th Congress
Matt Anderson is a Spokesperson at the U.S. Department of the Treasury.
Thinly veiled threat ? Ambiguous news that we're about to collapse ?
January 1st ?
This is shocking news. Either receipts are collapsing or spending is spiraling or both.
Not shocking at all. It has been predicted for some time. You can track it month by month and see that it would happen this year or early next year.
Some time that it was going to hit Jan1?
Looks like anyone expecting to get a tax refund might be SOL.
This crap just will not end, we are screwed here unless something happens very soon.
Good. The more the merrier.
Shut it down.
We have known for some time that we are accumulating debt at over $1 trillion annually since Obama took office. It should come as no surprise that we are hitting the debt limit again after the deal almost two years ago. From press reports:
If approved by Congress, the deal will increase the nation's debt ceiling by at least $2.1 trillion overall while cutting about that much in government spending over the next 10 years, Obama and congressional leaders said. The debt ceiling would not need to be raised again until 2013.
Did Geithner explain why it was that he ran out of money three months early? The Aug 2011 debt ceiling deal was supposed to carry us through March 2013. That deal was cut in exchange for $100 billion in spending cuts that never happened. Someone should tell Geithner to pound sand. Maybe he’ll get the hint and begin laying off Treasury Dept employees.
“This letter states, as I interpret, that some paychecks are going to stop.
Good. The more the merrier.”
This may mean no pay for our military people!
Hell, they may be such collectors' items as to be worth something. :-)
These 08 Bailout Babies, along with their Federal Lifers, aren’t going to stop until everyone else pays but themselves. The same MO as Exempting themselves from Extortion Care. Stalkers of everyone elses assets (including paid in social security) but their own.
Fine, we will increase the debt limit (yet again). But first, let us remember that you, Pelosi, Reid, and your boss have spent Trillions of dollars in the most irresponsible manner in United States history. "Stimulus 1" was nothing more than political payoff to union goons, environmentalists pagans, and layabout lazies.
Next, reform Entitlements, which are breaking the back of this nation. Instead of spending 67% of every dollar (with 40 cents of THAT dollar borrowed) entitlement spending must be decreased in actual dollars. Moreover, the welfare payment side of entitlements MUST be cut by half, and that includes cutting off the "99ners", millions of phony "Disabled" who are sucking the Social Security system dry, welfare breeders, and illegals who have no right to America's tax dollars in the first place.
Finally, you will stop giving tax "rebates" in the form of the "Earned Income Tax Credit" to millions upon millions of Americans who pay no Federal income tax to begin with. Now.
The US Congress
ahhhhhhhh, this just gets better and better!
Every day is a new disaster!
Every day is a new disaster!
They’ll get a chit.
The answer is simple: Pass a Bill in the House Abolishing the IRS and Obamacare and Attach a Debt Ceiling hike to it. Or JUST SAY NO.
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