Posted on 04/11/2011 1:40:14 PM PDT by Ernest_at_the_Beach
Lawmakers including Sen. Marco Rubio, a Florida Republican, and Sen. Joe Manchin, a West Virginia Democrat, say they won’t vote to raise it without accompanying plans to rein in the budget deficit.
The White House predicts that the deficit will hit a record $1.6 trillion this year, a figure that has many fiscal conservatives and tea-party activists outraged.
In a letter to Congress Monday, Geithner said the government could use temporary measures to avoid hitting the limit. But those tactics would only last for about eight weeks, he said, meaning the Treasury would run out of borrowing power around July 8.
What’s worrying Wall Street
Geithner has warned that interest and principal payments on Treasury bonds would stop and that Social Security and Medicare benefits would be discontinued if Congress doesn’t raise the debt limit — a prospect that has Wall Street worried.
(Excerpt) Read more at marketwatch.com ...
DO NOT RAISE THE DEBT CEILING... LAST WEEK HAS SHOWN US THAT THE republicans ARE INCAPABLE OF DEFEATING dims ON ANYTHING... just shut the bitch down and force across the board reductions in debt which will kill spending... which will in turn save America.
LLS
None of the politicians’ proposals so far would prevent eventual default, but many of them really do want to drag the debt regime out as long as possible. ...socialists, all, and their beneficiaries in government, public education, service “industry,” imports, all.
Geitner is bluffing. He knows full well that his signature on a SS check stop order is akin to signing his own death warrant. Literally
My comment: this will be another ho hum moment, move on. Boehner will spin it like this is not the time to trifle with the standing of the US bond ratings. (.)bama has already told him to say that and his acolytes who don’t wish to rock the boat will go along. No, we will fight this in next year’s budget...someone once told me, fool me once, shame on you, fool me twice, shame on me. Any RINO up there I find, I will go so far as to give money to the opposition even if he is a dem. The sooner we go over the cliff, the better IMO.
“Geithner has warned that interest and principal payments on Treasury bonds would stop and that Social Security and Medicare benefits would be discontinued if Congress doesn’t raise the debt limit — a prospect that has Wall Street worried.”
Not true, not true, not true.
Debt can be rolled over without increasing the debt limit and we have enough revenue to pay for SS and Medicare on a pay-as-we-go basis.
Geithner loses a lot of credibility with bean counters when he says stuff like this for political effect.
See my comment at #6.
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