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Secretary Geithner Sends Debt Limit Letter to Congress
Treasury Department ^ | December 26, 2012 | Matt Anderson

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

Majority Leader

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.

Sincerely,

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.


TOPICS: Breaking News; Business/Economy; Government
KEYWORDS: cliff; fiscalcliff; geithner; taxes
Read the PDF that's linked in the letter. This letter states, as I interpret, that some paychecks are going to stop.

Thinly veiled threat ? Ambiguous news that we're about to collapse ?

January 1st ?

1 posted on 12/26/2012 9:34:21 PM PST by Celerity
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To: Celerity

This is shocking news. Either receipts are collapsing or spending is spiraling or both.


2 posted on 12/26/2012 9:36:20 PM PST by DManA
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To: DManA

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.


3 posted on 12/26/2012 9:39:20 PM PST by kabar
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To: kabar

Some time that it was going to hit Jan1?


4 posted on 12/26/2012 9:40:35 PM PST by DManA
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To: Celerity

Looks like anyone expecting to get a tax refund might be SOL.


5 posted on 12/26/2012 9:40:43 PM PST by weston (As far as I'm concerned, it's Christ or nothing!)
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To: DManA

This crap just will not end, we are screwed here unless something happens very soon.


6 posted on 12/26/2012 9:46:02 PM PST by The Mayor ("If you can't make them see the light, let them feel the heat" — Ronald Reagan)
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To: Celerity
This letter states, as I interpret, that some paychecks are going to stop.

Good. The more the merrier.

7 posted on 12/26/2012 9:51:22 PM PST by rockrr (Everything is different now...)
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To: Celerity

Shut it down.


8 posted on 12/26/2012 9:53:14 PM PST by Paladin2
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To: DManA
Yep. You can go to this site and see how the debt has been accumulating day by day. It was $15,226,217,488,652.33 on January 3,2012. As of December 24, 2012 it was $16,337,556,561,533.65.

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.

9 posted on 12/26/2012 10:09:09 PM PST by kabar
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To: Celerity

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.


10 posted on 12/26/2012 10:31:35 PM PST by Hoodat ("As for God, His way is perfect" - Psalm 18:30)
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To: rockrr

“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!


11 posted on 12/26/2012 10:40:12 PM PST by longhorn too
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To: Celerity
Make him sell the bonds heedless of a debt limit, because he will if he thinks he can get away with it. Then outlaw payment on those bonds.

Hell, they may be such collectors' items as to be worth something. :-)

12 posted on 12/27/2012 12:16:22 AM PST by Carry_Okie (GunWalker: Arming "a civilian national security force that's just as powerful, just as well funded")
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To: Celerity; All
HEY! (TAX CHEAT :) TIMMAH...DO Your Own Income Taxes..

13 posted on 12/27/2012 12:31:09 AM PST by skinkinthegrass (Who'll take tomorrow,spend it all today;who can take your income & tax it all away..0Bama man can :-)
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To: Celerity

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.


14 posted on 12/27/2012 12:38:13 AM PST by Varsity Flight (Extortion-Care is the Government Work-Camp: Arbeitsziehungslager)
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To: Celerity
Dear Weasel Tax Cheat,

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.

Sincerely,

The US Congress

15 posted on 12/27/2012 3:56:32 AM PST by SkyPilot
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To: Celerity

ahhhhhhhh, this just gets better and better!


16 posted on 12/27/2012 6:01:47 AM PST by Rich21IE
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To: Rich21IE

Every day is a new disaster!


17 posted on 12/27/2012 7:06:15 AM PST by Red in Blue PA (Read SCOTUS Castle Rock vs Gonzales before dialing 911!)
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To: Rich21IE

Every day is a new disaster!


18 posted on 12/27/2012 7:06:29 AM PST by Red in Blue PA (Read SCOTUS Castle Rock vs Gonzales before dialing 911!)
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To: weston

They’ll get a chit.


19 posted on 12/27/2012 8:32:47 AM PST by ichabod1 (Spriiingtime for islam, and tyranny. Winter for US and frieeends. . .)
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To: Celerity

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.


20 posted on 12/27/2012 9:38:56 AM PST by eyeamok
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To: Celerity

This was the plan all along, and no one is really interested in stopping it except some crazy fiscal conservatives.

If people think this government will stop spending money it doesn’t have, then I have some prime oceanfront real estate in Nevada to sell you.


21 posted on 12/27/2012 2:06:54 PM PST by sf4dubya (I rebelled against my parents by becoming a conservative.)
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To: Celerity

Asset Sales
Although the U.S. Government owns other assets, such as gold, there are prudential or
legal limitations on its ability to sell these assets. Selling the Nation’s gold to meet payment
obligations would undercut confidence in the United States both here and abroad, and would be
extremely destabilizing to the world financial system.

Yeah, that probably is not an option because Ft. Knox probably doesn’t hold any physical gold.


22 posted on 12/27/2012 3:24:08 PM PST by Wisconsinlady (The only thing to stop a bad person with a gun, is a good person with a gun.)
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To: Wisconsinlady

Or China evicts us.....


23 posted on 12/27/2012 6:15:04 PM PST by SisterK (My kingdom is NOT of this world)
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To: weston
Looks like anyone expecting to get a tax refund might be SOL.

Which is why I cut the exemptions to the bare minimum back in May or so. Not expecting a tax refund, or a very small one at the most. I do NOT trust the government with my money. Why should I?

24 posted on 12/27/2012 7:16:13 PM PST by madison10
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To: Celerity
Hey there Tiny Timmy the Tax Cheat. No problem duuuuude.

In about 5 days, once your messiah (lower case is intentional) pushes us off the fiscal cliff, you will have 460 Billion a year in new taxes with only 100 billion a year in actual spending cuts!!! Come on now Timmy, tell the truth. Makes your crotch all tingly and excited doesn't it? Your ho bitch Bernanke makes all the nasty bank mortgage loans you forced them to write go away and suddenly the banks are solvent. Who the hell cares that all those little people become more impoverished. Why at the rate you guys are going, the other 250 million not on food stamps soon will be.

The most absolute immoral thing government does is steal money from the many so the few can continue to sit on their butts. The poor in America are so well off compared to the poor in other countries, it is nearly incomprehensible. Do the poor in other countries get free cell phones, have multiple automobiles, have games consoles, personal computers or iPads, have multiple flat screen TVs ans cable, have indoor plumbing, access to clean water, a credit card to buy food not at the grocery store but every little convenience store in every corner and virtually free healthcare.

There are poor in America who are rich enough to make people still want to come here and.cash in on the gravy train.

25 posted on 12/27/2012 8:45:59 PM PST by cashless (Obama told us he would side with Muslims if the political winds shifted in an ugly direction. Ready?)
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To: DManA

This puts things into a much better perspective as to the present economic situation. and it took a person from Canada to do it !!!

Lesson # 1:

* U.S. Tax revenue: $ 2,170,000,000,000.00
* Fed budget: $ 3,820,000,000,000.00
* New debt: $ 1,650,000,000,000.00
* National debt: $ 14,271,000,000,000.00
* Recent budget cuts: $ $ 38,500,000,000.00

Let’s now remove 8 zeros and pretend it’s a household budget:

* Annual family income: $ 21,700.00
* Money the family spent: $ 38,200.00
* New debt on the credit card: $ 16,500.00
* Outstanding balance on the credit card: $ 142,710.00
* Total budget cuts so far: $ 38.50

Got It ?????

OK now,

Lesson # 2:

Here’s another way to look at the Debt Ceiling:

Let’s say, You come home from work and find
there has been a sewer backup in your neighborhood....
and your home has sewage all the way up to your ceilings.

What do you think you should do ......

Raise the ceilings, or remove the crap?


26 posted on 12/28/2012 6:29:41 AM PST by IM2MAD (IM2MAD=Individual Motivated 2 Make A Difference)
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To: Celerity

Never let a crisis go to waste. They all disgust me.


27 posted on 12/28/2012 9:16:13 AM PST by ASouthernGrl (BHO sucks)
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To: Celerity

Here’s another little shocker for Mr. Tiny Timmy Turbo: Self-employed people making $250K will now be taxed at 39% rate according to your beloved messiah. Add on another 15.3% (or more) for SS and Medicare. That makes a whopping 53.3% federal bite out of every dollar, and that’s not counting any state taxes. Sad news, TTT, those folks are now pushed WAY over on the Laffer Curve and they are NOT going to just keep working for you and the messiah at those kinds of rates...ain’t gonna happen, TTT. They are all going to cut back dramatically and/or just outright quit working at all.
It it gonna get worse, TTT, because they’ll lay off, (if they haven’t done so already) any employees they may have have in order get out from under your messiah’s extortion healthcare plan. So you’re gonna lose all those tax dollars too, TTT. Once that happens on a nationwide grand scale, your golden goose is dead, TTT, your “goose” is cooked!!!. You see, TTT, socialists, cheats and thieves such as yourself eventually run out of other people’s money....and once that hard reality sets in on the “unwashed masses”, those in DC, such as yourself, that were once entrusted by the “unwashed masses” to do the “right thing” will be held responsible in ways that you can’t comprehend or even dream of.


28 posted on 12/28/2012 2:06:06 PM PST by lgjhn23 (It's easy to be liberal when you're dumber than a box of rocks.)
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To: Celerity
The Dishonorable Tax cheat Timothy F. Geithner:

Have you paid all your back taxes yet? You owe me a Social Security Check 1/9/2013.

29 posted on 12/31/2012 2:52:40 AM PST by tdscpa
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To: IM2MAD
*"Total budget cuts so far: $ 38.50"

Wrong.

Total budget cuts so far: $ none.

Total reduction in desired future spending increases mentioned: $38.50.

30 posted on 12/31/2012 3:09:19 AM PST by tdscpa
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